Difference for company and partnership

Company distinguished from partnership:

Partnership is the relation between profits of a persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

The principle differences between a company and a partnership are as followes:

1.regulating act:

a company is regulated by the companies act,1956. While the act 1932.indian partnership act.

2. mode of creation:

a company comes into he existence after registration under companies act,1956.registration is not complesary in the case of a partnership.

3.legal status:

a company has a legal personisfaction of the company debtality distinct from that of its members.made up of several persons who compose it.

4.liability of members:

The liability of the members of a company to contribute towards and liabilities is limited, where as partnership was fully liable of partners.

5.management:

The affairs of a company are managed by its directors o and management , and its members, and have a no right take part in the management.

6.number of members:

a)minimum. The minimum number of partners in affirm is 2 whereas the minimum number of members in aprivate company.

b) maximum . the maximum number of partners in affirm carrying on banking business can be 10 and in any other business 20. The minimum number of members in private company is 50.

7.powers:

a partnership firm can do anything which the partners agree to do and there is no limit to its activities; a company powers are limited to those allowed by the objects clouse sections.