- Investors prefer corporate structures over partnership firms.
- The liability of the members or the directors are limited in case of a company whereas in case of partnership firm the liabilities are unlimited
- A company is more transparent structure of business as compared to partnership firm
- The benefit of startup recognition under the startup India scheme of the government of India can be availed by a company and not by any partnership firm.
- The company has a separate legal identity as compared to a partnership firm.
- There is a separation of ownership and management in a company, whereas in partnership firm, the partners are owners and the managers of the firm.