naroo (accountant) (184 Points)
15 October 2010hi frndz,
pl tell me the difference between firm and company.
why not peopl go frim? why they open company ( since expenses on company formation is more than firm formation, Audit & ROC of company is compulsory to be file every year, however it is not so in case of firm )
pl clear my doubt.
tanxxxxxxx to all in advvvvvvvvance.
GAURAV JAIN
(C.A. F!N@L Group-1 Clear...)
(278 Points)
Replied 15 October 2010
company have seperate legal entity.
we can raise amount from public through capital contribution.
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 16 October 2010
There is a big difference in the two.
Compnay is generally opened where the scale of business is expected to be vast.A lot of legal formalities are to be complied with while starting and running a Company.And for starting a company, at least two people are required.
While in case of a firm, it is preferred for a small to medium scale business.Legal formalities to start and run a firm are almost nil, except for registration.A single person can also start a firm.
Exceptions can be there.You can notice large scale businesses running as a firm or a small to medium scale business running as a company.
Decision solely depends on Entrepreneur, which he finds suitable.
These were the basic differences, for detailed difference google or refer some text book.
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