| 1. Formation |
Owned and operated by a single individual. |
Formed by an agreement between two or more individuals. |
| 2. Number of Owners |
Single owner. |
Multiple owners (partners). |
| 3. Legal Status |
No legal distinction between the owner and the business. |
Legally distinct entity from its partners. |
| 4. Liability |
Unlimited liability for the owner. |
Partners have unlimited liability, jointly and severally. |
| 5. Decision-Making |
Sole control and decision-making rests with the owner. |
Decision-making is shared among the partners. |
| 6. Capital Contribution |
Owner contributes all the capital. |
Capital is contributed by all partners based on agreement. |
| 7. Continuity |
Limited continuity; business continuity depends on the owner's lifespan and willingness to continue. |
Continuity is relatively more stable, can continue beyond the lifespan of individual partners. |
| 8. Management |
Owner manages the business independently. |
Management responsibilities can be shared among partners. |
| 9. Profit Sharing |
Owner takes all profits. |
Profits are shared among partners as per the agreed terms. |
| 10. Transfer of Ownership |
Limited options for transferring ownership. |
Transfer of ownership may require the consent of partners. |
| 11. Accountability |
Sole responsibility rests with the owner. |
Partners share responsibilities and are mutually accountable. |
| 12. Privacy |
More privacy as there is no need to disclose financial information publicly. |
Financial information is shared among partners and may be subject to public disclosure. |
| 13. Registration |
Less formalities in terms of registration and compliance. |
Requires formal registration and adherence to legal requirements. |
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