Question

Explain 5 differences between a company and a partnership

According to Companies Act 2016 & Partnership Act 1961

for law subject

Answer 1

Basis	Company	Partnership
Registration	Registration is done under Companies Act	Registration is not compulsory. Guided by Partnership Act.
Number of Members	Private Limited company shall have minimum 2 members and maximum 50 members	Partnership shall have minimum 2 members and maximum 20 members
Legality	Company is artificial legal person	Partnership is not a legal person
Perpetual Succession	Company has Perpetual Succession	Partnership does not have Perpetual Succession
Liability	In Private Limited company liability of members is limited by shares or by guarantee	Unlimited liability of members
Binding	Member cannot bind a company by his act	Partner can bind a firm by his act
Transfer of shares	Shares of a company can be transferred	Share can be transferred by receiver cannot become a partner
Dissolution	Cannot be wound up by single member	Can be dissolved by any partner