HSC Board of Maharashtra – Organization of Commerce and management – Studies notes, study material,distinguish between, difference between Partnership Firm and Joint stock company .
| Sr. No | Basis of Difference | Partnership Firm | Joint Stock Company |
| 1. | Meaning | Two or More persons come together for some business activity & agree to share profit & loss is called partnership firm | It is Voluntary association of individuals for profit having capital divided into transferable shares, the ownership which is the condition of membership |
| 2. | Membership | Partnership firm owned by two or more and maximum 10 in banking and 20 in other firms | In private limited company minimum of numbers of members are 2 and maximum numbers are 50. In public limited company minimum numbers are 7 and no maximum number limit |
| 3. | Formation | Formation is simple and less costly. only a partnership deed is required. Registration is optional [ except in Maharashtra ] | Formation involves many complicated legal formalities. Therefore it is costly legal formalities. Therefore it is tremendously time-consuming |
| 4. | Liability | Liability of partners are unlimited. | Liability of every shareholder is limited to the extent of the unpaid amount on shares held by him |
| 5. | Act | Partnership is controlled under partnership Act, 1932 | Joint stock company is controlled under the Indian companies Act, 1956 |