Difference / Distinction Between Company and Partnership Firm (Company Law)

No.	Company	Partnership Firm
1	A company is created by registration under the Companies Act.	A partnership firm is created by written or oral Idea express or implied agreement.
2	Registration of a company is essential.	Registration of a partnership firm is not always essential.
3	In the eyes of law, a company is regarded as a legal person.	A partnership firm is not treated as a juristic person. A partnership firm is merely an association of person for carrying on partnership business.
4	Under the Companies Act, Liability of the members of a company is limited to the extent of the share amount held by them.	In the partnership firm, the liability of each partner is unlimited.
5	In case of a company, no maximum number of members is fixed. In a private company a minimum of two members and in the case of public company minimum seven members is required.	The partnership firm cannot have more than 20 partners/members. In the case of partnership firm carrying on banking business the membership of set form should be confined to 10 only.
6	A Company's shareholder Can transfer his shares freely without the consent of the other shareholders of the company.	In case of partnership firm, the partner of a firm cannot transfer his interest without the consent of other partners.
7	A company has Limited power subject to object clause of memorandum of association.	In the partnership firm partners can do anything which they agree to do.
8	A company can be wounded-up only by the order of the court, or by being dissolved in a legal manner or by its name being struck off by the registrar.	In case of partnership firm, it can be dissolved at any time by an agreement between the partners.

See Also...

1. Award and Settlement | Labor Law | Industrial Dispute Act 1947

2. Conciliation : Conciliation Officer, Powers and Duties of Conciliation Officer | Labor Law

3. Distinction / Difference between a Public Company and a Private Company

4. Distinction / Difference between Memorandum of Association and Articles of Associations | Company Law

5. Corporate personality: Meaning Definition and Kinds of Corporate Personality