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Whilst it is common for the terms 'Proprietor' and 'Director' to be used interchangeably, technically they are statutory terms and their use is strictly governed by the Companies Act and other similar legislation.
A Proprietor is a person who owns a Proprietorship. This is the simplest and easiest form of business registration. In this case, there can only be one owner. Usually, they will have a trading name on the basis of which they will acquire the business PAN card, service or sales tax registration etc...
A Director is a person who controls a company - whether private or public limited. They have signed a Memorandum of Directorship, have stringent statutory obligations placed upon them. And, remember, a company MUST have at least 2 Directors.
So, the easiest test re: whether to call your boss a Director or Proprietor is this: If his business is a Private Limited company, then he/she is a Director. If it is a single-person owned entity with a trading name attached, then he/she is a Proprietor.
And, to bring further clarity, if your boss is in a registered partnership, and is performing most of the business' management work, then he/she is a Managing Partner.
Urvashi Dixit (urvashi.vansh10@gmail.com)
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