Difference Between Company And Partnership Firm In Pakistan

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Company:

A company is referred to the association of persons who invest money and share profit and loss of the business. The company is an association of persons comes to commence a business for a common objective put investment and share profit and loss mutually. In order to start a private company the minimum number of persons is two and maximum numbers 50 members whereas for starting a public company the minimum number of persons is seven and a maximum number of members is unlimited. The registration of a company is obligatory. A company and a Partnership Firm is quite different from each other. There is a huge difference between them. Here below you can easily find the detail Difference Between Company And Partnership Firm In Pakistan. Keep reading this article till the end will surely help you in this regard.

Partnership Firm:

A firm is a business organization such s corporation, limited liability company and partnership. The term firm is referred to a business organization which is registered under partnership Act 1932 or limited liability partnership firm. There must be 2 members to start a partnership firm but the maximum number of partners is 100 partners. The registration of a partnership firm is voluntary. For the establishment of partnership firm, there is no need for a specific or physical location like a company. For further detail information must read the below listed key difference between a company and a firm.

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Key Difference Between Company And Partnership Firm In Pakistan:

Here are the following points from which you can easily distinguish between Company and Firm.

• A company is referred to the association of persons who invest money and share profit and loss of the business whereas a Partnership firm is a business organization such as a corporation, limited liability company, and partnership or run under two or more than two partners and mutually share the profit & loss.
• The partnership firm is created under the Partnership Act 1932 whereas the company is created by the Companies Act 1956 whereas the
• In order to start a private company the minimum number of persons is two and maximum numbers, 50
• In order to start a public company, the minimum number of persons is seven and maximum number of members is unlimited
• For commencing a Partnership firm there must be minimum two partners whereas the maximum number of partners for partnership firm is 100 partners.
• The registration of a company is obligatory whereas the registration of a partnership firm is voluntary.
• The liability of a company is limited whereas the liability of Partnership firm is unlimited
• Partnership Firm has no separate legal entity whereas the company is considered as the separate entity.