What's the difference between company system and partnership system?

The difference between corporate enterprises and partnership enterprises: different definitions; Each party bears different responsibilities; Different profit distribution methods; Different enterprise forms; Differences in the status of legal subjects; Differences in property rights structure; Other differences.

legal ground

Article 2 of the Company Law of People's Republic of China (PRC)

The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.

Article 2 of the Partnership Enterprise Law of People's Republic of China (PRC)

The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law.

A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail.

Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.