| | | PUBLIC LIMITED COMPANY | PARTNERSHIP |
| A | Formation | formation of Company is expensive and cumbersome as more documents are required in order to secure Certificate of incorporation. It is registered under the company's act | Formation. it is less expensive and required less documentation. It is registered under the partnership act. |
| B | Ownership and control | It is owned by shareholders and controlled by board of directors elected by the share- holders | it is owned by partners who can also take part in the management of the business. |
| C | Source of Capital | capital may be raised through sales of Shares, Debentures, Retained profits, loans, leases. | Partnership can only raise capital through partners' contributions, loans, leases, retain earnings. |
| D | Liability | Liability of members is limited to their share holdings in the business | Liability of partners does not end with their capital contribution but extends to personal properties. |
| E | Dissolution | The death of a shareholder or member of the board of directors does not bring the business to an end. It is by voluntary winding-up or by court orders. | Exit of a partner, disagreement among partners, introduction of a new partner or death of a partner brings the business to an end. |
