Part 1: What is company?, Types of companies
Part 2: Differences between private and public companies
Part 2: Differences between private and public companies
Part 3: Differences between partnership and companies
4 Differences between company and partnership
| Differences | Company | Partnership |
| Formality | Company is a formal arrangement of people may or may not work together. | Partnership is an informal arrangement of people working together but some formalities exist in it. |
| Legal position or existence | Company is a separate legal entity separate from its members or owners. | Partnership has no legal existence outside the boundary of its members. |
| Size | Unlimited number of members so size is from small to high. | Generally traditional partnership has limited number of members. |
| Addition of member | When new member enters in the company then no effect on ownership structure. | Usually partnership dissolved when new partner enters. |
| Assets | Company has its own assets as it has its separate identity. | While assets in partnership are jointly owned by the members. |
| Monitory benefit | Monitory benefit is given in the form of dividend to members in company | Benefit is given in the form of profits. |
| Liability | Members’ liability is usually limited. | Members liability is usually unlimited. |
| Management | In company mostly owners/members are separate from management (two directors for public Co) | In partnership all the partners can participate in the management. |
| Constitution | A company must have written constitution. | Partnership has a written partnership agreement of deed. |
| Capital | Company can raise capital by issuing shares to its members. | Partners have their own investment. |
| Withdrawal of capital | There are more strict rules for withdrawal of capital and its repayment. | It is easier to withdraw capital/investment in partnership. |