SOLE PROPRIETOR
There is only one minimum
number of members required.
For this type of business, no
such government act exists.
Only one person manages this
type of business.
No registration required in sole
proprietorship.
All profit is enjoyed by the
owner and loss borne by the
owner.
In this type business, owner can
raise funds by only taking loans
from others.
Liability borne by the partner
only.
No conflicts as only one apex
decision maker.
A sole proprietorship can’t exist
without the owner.
Secrets don’t disclose to other
persons.
PARTNERSHIP
There are two minimum number
of members required.
Governed by partnership act
1932.
All the partners can manage this
type of business.
Depends on the partners if the
want they can register.
All profit generated is distributed
according to the partnership
agreement.
Partners can raise fund by adding
a new partner in the business for
some share of profit.
Liability shared by the partners.
May lead to conflicts due to
multiple decision makers.
More stable as it can be run by
other partners on death or
retirement of one.
Secrets are shared among all
partners.
COOPERATIVES
Minimum 10 members and
maximum unlimited members.
Cooperatives have a limited area
of business.
Managing committee manages
cooperatives.
Formation of cooperatives is easy
and cheaper.
Members of the managing
committee work on a honorary
basis.
The principle one man one vote is
followed.
Motto is service to the people.
Shares are not transferrable they
are to be surrendered to the
society.
Proxies are not allowed in
meetings
Less capital required.
JOINT STOCK COMPANY
Private company has minimum
2 and maximum 200. Public
company has minimum 7 and
maximum unlimited.
Companies have a larger area of
business.
Board of directors manage joint
stock companies.
Formation is costly time
consuming and difficult.
Board directors get salary and
fees for attending board
meetings.
The principle one share one vote
is followed.
Motto is to make profit.
Shares are freely transferrable
Proxies are allowed in the
meetings to vote.
Larger capital required.
HINDU UNDIVIDED FAMILY
Minimum 2 members and there is no
maximum number prescribed.
Government act exist for HUF.
Karta manages the HUF.
There is no compulsion to create a HUF
deed.
All profit is divided among the
members.
Funds can be raised through ancestral
property or gifts received during
marriages or members of the HUF.
Liability of the Karta is unlimited.
No conflicts as only Karta responsible
for final decision making.
Membership is by birth as soon as a
child is born, he/she is the member of
the HUF.
Death or insolvency of one member
does not affect the business, the
business goes on the continue.