With all due respect to Shri Umakanthan sir, in a proprietary concern, the proprietor is solely liable for all profits and losses, if any. That is, he is liable in a personal capacity as well as a proprietor of the firm. On the other hand, as a director of a company, his liability is limited as mentioned in the MOA (Memorandum of Association). In the case of any liability arising in a proprietary concern, one can recover the liability from the assets of the sole proprietary concern as well as from the personal assets of the proprietor. In the case of a company, the director is liable to the extent mentioned in the MOA and not in his personal capacity unless and until he discharges any such type of document.