1 Person (either natural or artificial)

2 Persons (either natural or artificial)

2 Persons (either natural or artificial)

2 in case of Private Limited Company
and 7 in case of Public Limited Company

Maximum Number of Members

Not Applicable as it consist of single person

20 except in case of banking business.
10 in case of banking business

Unlimited

50 in case of Private Limited
and unlimited in case of Public Limited Company

Legal Entity

Proprietorship does not have
legal entity as the Proprietor and the firm are same persons

Partnership does not have
Separate Legal Entity other than
partners of the firm

LLP has separate Legal
entity other than its partners and Designated Partners and can operate like a legal person

Company has separate Legal
entity other than its shareholders and Directors and can operate like a legal person

Ownership of organisation

Ownership lies with
Proprietor

Ownership lies with the partners

Ownership lies with the Partners of LLP

Ownership lies with members

Ownership of Property

Ownership lies with
Proprietor as the Proprietor and the firm are same persons

Ownership lies with the Partners

Ownership lies with LLP

Ownership lies with Company

Transferability of Ownership

The entire business needs to be sold

Ownership is restrictive;
any change in partnership
requires the approval of other partners.

Ownership is changeable as per LLP agreement

Ownership is easily changeable ,
as shares of Company are freely
transferable

Management

Managed by the proprietor

Managed by the Partners

Managed by the Partners as per LLP agreement

Managed by the Directors elected / appointed by
members of company

Liability

The liability of the Owner is
unlimited and extends to his
personal assets

The liability of the Partners are unlimited an extends to personal property

The liability of partners are Limited to the contribution as per LLP agreement

The liability of members are Limited to the share taken and does not extends to personal property

Creditworthiness

The creditworthiness of Proprietorship firms depends
upon the goodwill and creditworthiness of its Proprietor

The creditworthiness of
Partnership firms depends
upon its goodwill and
creditworthiness of its
partners

Due to Compliances &
disclosures under LLP Act and other laws,
LLP enjoys high degree of
creditworthiness

Due to Stringent Compliances &
disclosures under various laws,
companies enjoys high degree of
creditworthiness

Continuity of Business

Death or Insolvency of Owner dissolves the Proprietorship

Death, resignation or
Insolvency of Partner,
dissolves the firm

LLP has Perpetual
Succession, death or insolvency
of partner does not effect its
existence

Company has Perpetual
Succession, death or insolvency
of members does not effect its
existence

Dissolution/Winding up

Proprietor can close the business at any time

Partnership can be
terminated as per will of
partners

LLP can be wound up as per
procedures laid down in LLP Act

Company can be dissolved as per
Companies Act.