Difference between Partnership and Company

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Difference between Partnership and Company

PARTNERSHIP
Indian Partnership Act, 1932 defines Partnership as ” Partnership is a relationship between two or more persons who have agreed to share the profits of a business carried on by all partners or any one partner acting for all”. The members of the Partnership firm are called as Partners. There are different types of partners such as Active partner, Sleeping partner, Nominal partner, Minor partner, Etc.Partnership Frim is created by agreement between two or more people by registering the partnership firm with Registrar of Firms according to Indian Partnership Act, 1936.Registration of a partnership firm is very simple process and Application for registration of firm must contain the following details

✔ Name of the firm
✔ Names of the partners and their addresses
✔ location where the business is carried on.
✔ Partnership tenure between the partners
✔ The main office of the firm, etc.

COMPANY
Indian Companies Act, 2013 defines Company as ” A Company formed and registered under this Companies Act or under any previous company law”. A company is defined easily as an association of two or more persons which is formed for doing business collectively and registered with Registrar of Companies according to Indian Companies Act, 2013.There are different types of companies like One Person Company, Private company and Public Company, etc.To get registered with Registrar of Companies, the promoters are required to submit the copies of Articles of Association and Memorandum of Association which consists of various information relating to internal management and external management of the company.

The company exhibits certain special characteristics, such as
✔ It have a Separate Legal Entity
✔ It contains Common Seal under its name
✔ It has limited liability
✔ It acts as an artificial person, Etc.

Reference:http://topdifferences.com/difference-between-partnership-and-company/