Difference between Company and Partnership

 

Company	Partnership
Company is a volunteer association of persons registered under a company to achieve a common object.	Partnership is the relation between two or more individuals who have agreed to share the profits of a business carried on by all or any of them acting for all. Collectively the partners known as firm.
Company Act is enacted by the Pakistan parliament to regulate companies	Whereas, the Partnership Act regulates the conduct of partnership firms.
For the formation of companies it is compulsory to be registered and usually companies are difficult to form.	Partnership firm are easily formed by the partnership deed.
Members of companies are called share holders.	Members of partnership firm are called partners.
Company is a legal body and has a corporate status. The lifetime of company is not dependent on the shareholders. Thus, a company is a mere abstraction of law	Partners are the main elements of the partnership. Without members partnership has no legal existence.  Hence, partnership is a mere aggregation of individuals
Under a company the liabilities of shareholders are limited to the share purchased by them.	Partnership, directly makes the partners liable for any breach
In a company a Member can enter into contract with the company because company is a different legal entity.	A partner of a firm cannot enter into contract with the same partnership firm.
It is compulsory that the Private company must be consisting 2 minimum 2 and maximum 50 members. However, Public company members minimum number is 7 but has no maximum limit.	In case of partnership should have a minimum of 2 and can have a maximum of 20 persons
Companies are audited by professional or authorised auditors. Power, duties and liabilities of auditor are regulated by the Company Act.	Yet, in partnership auditing of firm is not compulsory, even if the partners decide to audit the firm the auditor may or may not be authorised.
A company, being a creature of law, can only be dissolved as laid down by law.	Being result of an agreement the Partnership firm can dissolved by agreement at any time.