| Basis | Partnership Firm (PF) | Joint Stock Company |
| 1. Meaning | It is a business organization owned, financed, and managed by two or more persons collectively. | It is an association of persons formed under the Companies Act, to run a business. |
| 2. Number of members | Minimum 2 and maximum 50 members are required for general business. | For Private company minimum 2 and maximum 200. For Public company minimum 7 and maximum unlimited. |
| 3. Registration | Registration is not necessary. But is compulsory in Maharashtra. | Registration is compulsory under the Companies Act, 2013. |
| 4. Liability | Partners carry unlimited liability, joint, and several. | The liability of all members is limited, to the extent of shares held by him. |
| 5. Stability | It has no stability. Death or insolvency of a partner may affect stability. | It has a stable business. Death or insolvency of a member does not affect the stability. |
| 6. Capital | Compared to Sole Trading concern and Joint Hindu Family business it requires more capital. | It requires a huge amount of capital. |
| 7. Secrecy | Secrecy may be shared by partners. | It maintains less business secrecy. |
| 8. Management | All partners are equally responsible for the management of the business. | The Board of Directors is responsible for the management of the Joint Stock Company. |
| 9. Government Control | There is limited government control on the working of the partnership firms. | There is more government control on working of Joint Stock companies. |
