Difference between Partnership Firm and Company

PARTNERSHIP FIRM

COMPANY

AS TO LEGISLATION

Partnership regulated under Partnership Act 1932

Company is regulated under companies Act, 2017.

AS TO LEGAL ENTITY

Partnership has no legal entity.

Company has separate Legal Entity.

AS TO CREATION

Partnership is created by a Simple Agreement.

Incorporation of Company required formalities to be observed.

AS TO TRANSFER OF SHARE

Partner cannot transfer his shares without the consent of the other Partner.

In Company Shares are easily transferable.

AS OF MEMBERS

In Partnership Minimum Two Partners and Maximum Twenty Partners are allowed.

In a Company the Members Minimum Two and maximum according to the shares.

AS TO LIABILITY

Partners has unlimited liability under Partnership Firm.

Liability under Company is limited to the value of Shares.

AS TO MANAGEMENT

In Partnership every Partner may take active part in the Management of the Business.

In company Management is carried on by Directors.

AS TO AUDIT

Audit is not compulsory by law under Partnership Firm.

Audit is Compulsory by law under the Company.

DISTRIBUTION OF PROFIT

Profit is distributed among the Partners according to the ratio defined in Partnership. Deed.

Profit is distributed among Directors according to their shareholding in Company.

AS TO CONTRACT

A Partner cannot make Contract with his Firm.

Shareholder can make an Agreement with the Company.

AS TO OWNERSHIP

In Partnership Property belongs to Partners.

Property belongs to the Company.

AS TO SUCCESSION

In case of Transfer of Share or Inheritance Partnership is seriously affected.

Shares of the Companies are transferable to the heirs of member/Shareholders easily.

For Company/Firm Registration

Just Dial +923454844646

 
Name
Email
Subject to discuss
Date
Message
 

@ All Right Reserved. Tax Care