The vital difference between the Pvt Ltd Company and Partnership Company is that there is no minimum capital requirement for starting a partnership company and to start a Pvt. Ltd Company minimum Rs. 1 lakh is required to begin. A Partnership Company has no separate identity from its partners, whereas a Private Ltd Company has a separate establishment to own assets in its name. Registration of the private limited company is mandatory to set up a business.
Whereas in case of a Partnership company both the registered and unregistered partnerships are legal. A Pvt.Ltd company requires maximum 200 shareholders and minimum 2 to form. A Partnership Company can be formed with 2 partners and members not exceeding above 50 members. If there is any change in members or directors in a Pvt ltd. Company it does not affect the company’s existence. Formation of another partnership firm has be done in case there is any change in partner in a Partnership Firm.
Statutory audit is not applicable in case of a Partnership Firm. The tax audit can be done based on the turnover. A Pvt. Ltd company should appoint an auditor within 30 days of its formation. The ownership in a Pvt Ltd Company can be transferred easily through shares if the shareholders give their permission. In a Partnership firm the ownership is not transferable easily.