Difference Between Partnership Firms and Limited Companies

Partnership

1.     Ordinary partners have unlimited liability 2.     Limited to 20 partners 3.     It is regulated by Partnership Act 1890 4.     It is not a legal entity 5.     Need not to incorporate etc

Limited Companies

1.     Share holders have limited liability 2.     Any number of shareholders 3.     It is regulated by Company’s Act 1980 4.     It is a legal entity 5.     It must be incorporated