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Main difference between a company and partnership

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The main difference between a registered company and partnership are:

  • Formation: For a company to exist, it has to be legally registered while a partnership does not have to be registered.
  • Membership: A registered private company can have on director/member while a partnership must more than one member.
  • Transfer of shares: Share in a company can be transferred while shares in a partnership cannot be transferred unless all the partners have agreed on the transfer
  • Liability: Members of the company are not personally liable for the company's debts while a partner is personally liable to the business's debts
  • Termination: Death of one of the members does not lead to the termination of the company's existence while the death of a partner may lead to the termination of the partnership unless the partnership agreement says otherwise
  • Borrowing Money: A company can borrow on the security of a floating charge while a partnership cannot
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