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VOL. 12, ISSUE 1 (2026)
A Research Paper on relationship between partnership and company
Authors
Dr. Garima Yadav, Chhavi Dedha
Abstract
The relationship between partnership and company represents a
fundamental comparative theme in business organization law, highlighting both
shared origins and divergent legal characteristics. While partnerships
historically evolved as simple contractual associations based on mutual agency
and unlimited liability, the modern company emerged as a distinct legal entity
with separate personality, limited liability, and perpetual succession. This
research paper critically examines the conceptual, structural, and functional
distinctions and overlaps between the two forms of business organization. It
explores how both models reflect different levels of legal recognition, risk
distribution, decision‑making authority, and regulatory oversight. The study
evaluates the extent to which companies retain partnership‑like elements, such
as fiduciary duties, profit‑sharing, and mutual confidence among members, while
also analyzing how statutory frameworks—particularly the Indian Partnership
Act, 1932, and the Companies Act, 2013—shape their operation. Through doctrinal
analysis and comparative assessment, the paper argues that although
partnerships and companies share a common economic objective, they differ
profoundly in legal personality, liability regimes, governance structures, and
continuity of existence. The research concludes that understanding this
relationship is essential for choosing the appropriate organizational form,
ensuring effective governance, and appreciating the evolution of business law
in India and other common law jurisdictions.
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Pages:122-131
How to cite this article:
Dr. Garima Yadav, Chhavi Dedha "A Research Paper on relationship between partnership and company". International Journal of Law, Vol 12, Issue 1, 2026, Pages 122-131
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