Sole Proprietorship | Partnership

Topics: Types of companies, Stock, Business law Pages: 1 (424 words) Published: October 30, 2012
| Sole Proprietorship| Partnership| Joint Stock Company (JSC)| Definition| It is the type of business organization in which one person owns and operates in business| The relation between persons who have agreed to share the profits of a business carried on by all any one of them acting for all.| A company is an association of person who contribute money to a common stock and use it for a common purpose| Legal entity| It contain separate legal entity apart from its owners| It contain no separate legal entity apart from its members| It posses separate legal entity apart from its members| Registration| The registration of it is not required by law| The registration of it is not compulsory| The registration of it is compulsory under the company ordinance 1984| Number of partners| There is no concept of more than one partner. It is conducted by only one partner.| There are at least 2 persons in each type of partnership but maximum no of partners is 20| In case of multi members private company there are at least 2 members and maximum is 50 while is case of listed public company there at least 7 members and no restriction of maximum members| Liability| Sole trader is liable for all the obligations of business so the full value of assets that he posses.| Liability of each partner is unlimited.| The liability of each share holder is limited.| Management | All business affairs manages by one person| Every partner has right to participate in the management.| The business of JSC is conducted by the board of directors which are elected by members | Formation| There is no legal provision and other complicated for the formation of it.| It is formed by under the act 1932.| It is formed by under the company’s ordinance 1984.| Change in capital| Sole trader can increase and decrease the capital volume according to the circumstances.| In partnership partners can change the volume with mutual consultation.| JSC can change the capital...
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