Proprietorship Firm | Partnership Firm |
A firm run by only single individual and he is the sole owner of the firm. | A firm started by two or more partners with the aim to earn profit is known as a partnership firm. |
There is no specific governing law. | It is govern by the Indian Partnership Act. |
There can be only one member. | There must be minimum 2 and maximum 50 partners. |
Proprietor has to borne liability alone. | The liabilities will be shared among partners. |
Proprietor is the sole decision maker; hence decisions can be taken quickly. | Approval from all or majority of the partner is necessary as per the agreement; hence there may be delayed decisions. |
Profit is solely earned. | Profit is distributed among partners. |
Proprietor is the only source of capital. | Capital is brought by all the partners. |
It is less credible. | It is more credible as compared to proprietorship firm. |