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Co-operative Society Partnership Firm

Sr.
No.
Basis of Difference

Co-operative Society

Partnership Firm

1.


Meaning
A Co-operative society is a voluntary association of people who come together on the basis of unity and equality to protect and promote their common economic interest.
In this form of business organization two or more persons come together to undertake a business activity and share profits.

2.

Motive
The main motto of a co-operative is to provide services to members. Profit making is its secondary objective.
The main motto of a Partnership firm is to earn profit. Providing service is the secondary motive.

3.

Membership
A minimum 10 members are required for formation of a co-operative society though there is no maximum limit.
There can be a minimum of 2 partners and a maximum of 10 partners in banking business and 20 in non-banking business.

4.

Liability
The Liability of every member in a co-operative society is limited.

The liability of partners is unlimited. It is joint as well as several (quit a few).

5.

Transferability  of shares
Shares can be transferred in favour of the society at any time by the members.
No partner can transfer his share in favour of others without the consent of other partners.

6.

Act
Co-operative society is governed under Co-operative society Act, 1912.
Partnership is controlled under Indian Partnership Act, 1932.

7.

Legal Status
Co-operative society enjoys an independent legal status different form its members.
Partnership firm does not enjoy an independent legal status. Legally there is no difference between the partnership firm and its partners.

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