Differentiate between the company and partnership.

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answered Sep 20, 2021 by VarunJain (62.3k points)
selected Sep 20, 2021 by GitikaSahu

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Difference between the company and partnership

BASIS FOR COMPARISON	PARTNERSHIP FIRM	COMPANY
Meaning	When two or more persons agree to carry on a business and share the profits & losses mutually, it is known as a Partnership firm.	A company is an association of persons who invests money towards a common stock, for carrying on a business and shares the profits & losses of the business.
Governing Act	Indian Partnership Act,1932	Indian Companies Act, 2013.
How it is created?	Partnership firm is created by mutual agreement between the partners.	The company is created by incorporation under the Companies Act.
Registration	Voluntary	Obligatory
Minimum number of persons	Two	Two in case of private company and Seven in case of public company.