||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.
||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.
||Company has its own assets as it has its separate identity.
||While assets in partnership are jointly owned by the members.
||Monitory benefit is given in the form of dividend to members in company
||Benefit is given in the form of profits.
||Members’ liability is usually limited.
||Members liability is usually unlimited.
||In company mostly owners/members are separate from management (two directors for public Co)
||In partnership all the partners can participate in the management.
||A company must have written constitution.
||Partnership has a written partnership agreement of deed.
||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.