Distinction between a Company and a Partnership:

• Introduction: Company is an association of persons for some common object.  In simple terms, company may be described to mean a voluntary association of persons who have come together for carrying on some business and sharing the profits therefrom.  Whereas, partnership is a relation between persons with each other who have agreed to share profit in a business.  Partnership is a relation which subsists between persons carrying on business in common with a view of profit.
• Definition:             The definition of "Company" is given under section 2 (20) of Company Act, 2013 i.e. A company means Company incorporated under Company Act, 2013 or under any previous company law. Whereas the definition of "Partnership" is given under section 4 of Indian Partnership Act. I.e. a Partnership means "Partnership is the relation between persons who have agreed to share the profits of a business carried by all or any of them acting for all. "Partner", "Firm" and Firm Name: Persons who have entered into partnership with one another are called individually 'Partner' and collectively a 'firm' and the name under which their business is carried on is called the 'firm-name'.
• Membership: In one Person Company means a company which has only one person as a member and the maximum number of members in private company is 200 but in a Public company there is no limit on the maximum number of members.  Whereas the minimum number of members in a Partnership is two and the maximum number of partners is limited to the 10 in case it is carrying on banking business and 20 in case of any other business.
• Legal Status: A company has a separate legal personality of its own. A company being a juristic person and it has separate legal entity and it is quite distinct from its members. Whereas a partnership is not a distinct person and a partnership commonly called as a 'Firm' and has no legal existence apart from its members. Firm is only a convenient way of addressing the partners collectively.
• Management: Director who are elected, appointed by the shareholders in a General meeting manage Companies. Accordingly, all members of a company cannot participate in day-to-day management of the company. Whereas in Partnership A partner unless otherwise provided in the partnership deed / agreement can participate in management of the firm.
• Perpetual Succession: A company enjoys perpetual succession. The existence of the company is not affected by the death, insolvency, insanity or separation of a member. Even the death for insolvency of all the members does not wipe off a company.  Whereas In the Partnership unless otherwise agreed, death, insolvency etc. of a partner dissolves the firm. Even retirement or separation of a partner may bring about end of the firm, which however may be reconstituted. In the case of a company, once it is wound up, it cannot be reconstituted.
• Dissolution: A company's existence will come to an end only by an order of the Court. Whereas a partnership firm can be dissolved at any time by an agreement between the partners or in case of partnership at will, by the withdrawal of even one partner.