|
Basics of comparision |
Sole proprietorship |
Partnership |
Join hindu family business |
Cooperative society |
Company |
|
Formation |
Minimal legal formalities, easiest
formation |
Registration is optional, easy formation |
Less legal formalities, exemption from
registration easy formation |
Registration is compulsory, greater
legal formalities |
Registration is compulsory, Lengthy and expensive formation process |
|
Members |
Only owner |
Minimum: 2 Maximum: (Banking- 00 Others-20) |
At lest two person for division of
family property, no maximum limit |
At lest 10 adults, no maximum limit |
Minimum private= 2 Public company= 7 Private company= 50 Public company= unlimited |
|
Capital; contribution |
Limited finance |
Limited but more than that can be raised
in the in the case of sole proprietorship |
Ancestral property |
Limited |
Large financial resources |
|
Liability |
Unlimited |
Unlimited and joint |
Unlimited (karta) limited (others
members) |
Limited |
Limited |
|
Control and management |
Owner take all decisions, quick decision
making |
Partners take all decision consent of
all patners is needed |
Karta takes decision |
Elected representative, i.e., managing
committee takes decisions |
Separation between ownership and
management |
|
Continuity |
Unstable, business and owner regarded as
one |
More stable but affected by status of
partners |
Stable business, continues even if karta
dies |
Stable because of separate legal status |
Stable because of separate legal status |
