Formation and Regisration

A company is created by law while partnership is the result of an agreement between the partners. In the formation of partnership no legal formalities are involved and registration of the firm is not compulsory. A company can be formed only after fulfilling legal formalities and its incorporation under the Act is essential.

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To respond to social Demands

Business is set up to earn profits by supplying goods and services to the member of the society. Therefore, business is the creation of society and its primary aim is to fulfil the needs of the people. In case the business fails to do so, the society will either force it to do so through its elected representatives or compel it to close down and go out of the market.

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