CompaniesInn.com India Private Limited
Business Comparison
COMPARISON OF BUSINESS FORMS
CRITERIA
PROPRIETORSHIP
PARTNERSHIP
LIMITED COMPANY
Minimum Number
of Members
1 Person (either natural
or artificial)
2 Persons (either
natural or artificial)
2 in case of Private
Limited Company
and 7 in case of Public
Limited Company
Maximum Number
of Members
20 except in case of
banking business.
10 in case of banking
business
50 in case of Private
Limited
and unlimited in case of
Public Limited Company
Cost of
Registration
As there is no
registration required,
No Statutory fees is
payable
The cost of registration
is
negligible
The cost of
Registration, mainly the
statutory filling fees
depends on the
proposed Authorised
Capital
Legal Entity
Proprietorship does not
have
legal entity as the
Proprietor and the firm
are same persons
Partnership does not
have
Separate Legal Entity
other than
partners of the firm
Company has separate
Legal
entity other than its
shareholders and
Directors and can
operate like a legal
person
Ownership of
Business
Ownership lies with
Proprietor
Ownership lies with the
partners
Ownership lies with
members
Management
Managed by the
proprietor
Managed by the
Partners
Managed by the
Directors elected /
appointed by
members of company
Ownership of
Property
Ownership lies with
Proprietor as the
Proprietor and the firm
are same persons
Ownership lies with the
Partners
A Company purchases
its
Property in its own
name
Flexibility in
Ownership
The entire business
needs to
be sold
Ownership is
restrictive;
any change in
partnership
requires the approval of
other partners.
Ownership is easily
changeable ,
as shares of Company
are freely
transferable
Liability
The liability of the
Owner is
unlimited and extends
to his
personal assets
The
liability of
the
Partners are unlimited
an extends to personal
property
The liability of members
are Limited to the