DIFFERENCE BETWEEN COMPANY AND PARTNERSHIP

WHAT IS A COMPANY

In a company, several stockholders buy shares and get ownership of the incorporation.

There are two types of company: 

• Public limited company
• Private limited company

You can enroll your firm through the registrar by submission of a memorandum of association, articles of association, prospectus ( if not issuing prospectus then statement in lieu of prospectus is issued).

WHAT IS PARTNERSHIP

Partnership is an association carried by two or more partners as co-owned a business for profit.

Partnership deed is required in the registration of partners. There is a maximum limit of partners who can collab to form their business. There is no tough procedure required for the registration of a partnership firm except partnership deed which must be oral or written. In a partnership deed, you must mention the nature of business, name of business, duration of business, name, and address of partners, e.t.c.

Company and partnership difference

PARTNERSHIP ACCORDING TO LEGISLATION

The firm is allocated under the partnership act 1932.

COMPANY ACCORDING TO LEGISLATION

The business is allocated under companies ordinance, 1984

LEGAL ENTITY

Partnership: It firm has no legal entity.

Companies: It has a separate legal entity.

INCORPORATION

Partnership: It is created among legal agreements.

Companies : Incorporation requires formalities to be adopted.

ASSIGNING OF SHARES

Partnership: In a partnership firm, partners cannot assign shares without the approval of other partners.

Companies: You can easily transfer shares in it.

LIABILITY

Partnership: The liability of partners is unlimited.

Companies: The liability of stockholders is limited, up to the shares.

MEMBERS

Partnership: In a partnership firm, there must be at least two partners and the maximum twenty.

Companies: Here, the minimum limit of the partner is two and maximum according to the shares. Moreover, you can also add partners.

MANAGEMENT

Partnership: Every partner can take an efficient part in a company except a minor and sleeping partner.

Companies: It is managed under the board of directors.

ACCORDING TO AUDIT

Partnership: Under the law of partnership, no audit report is compulsory.

Companies: In company law, the audit report is compulsory.

PROFIT DISTRIBUTION

Partnership: Profit is distributed among partners according to the ratio given in partnership deed.

Companies: Profit is distributed among the directors according to their stockholding in the business.

AGREEMENT:

Partnership: A partner cannot make contact with his firm.

Companies: Shareholders can make a contract with their company.

BELONGING OF OWNERSHIP

Partnership: Property belongs to the partners of the firm.

Companies: property belongs to the company.

TRANSFER OF SHARE

Partnership: By transferring shares, the firm gets affected.

Companies: Transfering of shares in a company is not a serious problem.

FOR QUERIES

If you need any help regarding the registration of the company or you want to choose, which type of business is beneficial for you, you can contact us and can take queries from our experts. you can also submit your documents to us so that we may help you in the later process of registration, incorporation or making of documents. You can also take benefits from our other services such as trademark registration, GST registration, patent registration, e.t.c.