Sole Proprietorship | Partnership

| 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