Question

How does a private limited company differ from a partnership?

Distinguish between Partnership and Private Limited Company.

Answer 1

Sr. No.	Basis	Partnership	Private Limited Company
1.	Number of Members	Minimum 2, Maximum 50	Minimum 2, Maximum 200
2.	Registration	Voluntary	Compulsory under the Companies Act, 2013
3.	Liability of Members	Unlimited	Limited to the amount unpaid on shares
4.	Name	No specific requirement	Must include ‘Private Limited’ after its name
5.	Directors	No such requirement	Minimum two directors required
6.	Regulating statute	The Partnership Act, 1932	The Company Act, 2013