Q: Difference between Company, Sole proprietorship and Partnership ?

Ans: Difference between Company,  Sole Proprietorship and Partnership: 

1. Company is a corporate body which can be public or private company having limited or unlimited liability.

In Sole Proprietorship Business Organization, the only one person is the owner as well as the operator of the business.

In Partnership business, there is an association of two or more people who agree to carry business as well as mutually share profits and losses.

2.The Governing act in Company law is Companies Act, 2013 whereas there is no governing act of Sole Proprietorship Firm. The Governing Act of  Partnership Firm is Indian Partnership Act, 1932.

3. So far as members are concerned in company, there are minimum 2 members and maximum 200 members in Private limited company whereas there are minimum seven members and maximum members are unlimited in public limited company.

 There is only one member in sole proprietorship firm.

There are minimum 2 members and maximum 100 members in partnership firm.

4.  In company, the liability is limited liability.  In sole proprietorship firm, the liability is unlimited liability. The partnership firm has unlimited, joint and several liabilities.

5. The Company pays both central government and State government taxes which are taxed by revenue collecting body. In sole proprietorship firm , the income of the business is treated as the income of the owner and is taxed accordingly.
The partnership firm does not pay taxes on profit or loss as the income tax is paid by the individuals.

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