What is the difference between Limited Company and a Partnership firm?
Ans. Partnership firm does not acquire legal personality on its registration. But Company does acquire legal personality on its incorporation. In case of Partnership firm liability of Partners is unlimited. But in case of company, Shareholders liability is limited.The Property of the Firms belongs to the partners and they are collectively entitled to it, whereas in the case of Company, the property belongs to the Company and not to its members.Limited company has got the perpetual succession, easy transferability, common seal etc.Limited Company is an artificial person it can sue and be sued.
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