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Sr.
No.
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Basis of Difference
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Partnership Firm
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Joint Stock Company
|
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1.
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Meaning
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In this form of business organization
two or more persons come together to undertake a business activity and share
profits.
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It is voluntary association of
individuals for profit having capital divided into transferable shares, the
ownership which is the condition of membership.
|
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2.
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Membership
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There can be a minimum of 2 partners
and a maximum of 10 partners in banking business and 20 in non-banking
business.
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The minimum of number of members are 2
in private limited company and a maximum of 50. In a public limited company,
minimum number of members is 7 and there is no maximum limit.
|
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3.
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Formation
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The formation is comparatively simple
and less costly. Only a partnership deed is required to be prepared.
|
The formation involves many
complicated legal formalities. Therefore it is tedious, costly legal
formalities. Therefore it is a time consuming.
|
|
4.
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Liability
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The liability of partners is unlimited.
It is joint as well as several (quit
a few).
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The liability of every shareholder is
limited to the extent of the unpaid amount on shares held by him.
|
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5.
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Act
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Partnership is controlled under Indian
Partnership Act, 1932.
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Joint stock company is controlled
under the Indian companies Act, 1956.
|
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6.
|
Registration
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Registration of partnership firm is
optional. (except in Maharashtra)
|
Registration of Joint Stock Company is
Compulsory under India companies Act, 1956.
|
Partnership Firm Joint Stock Company
