| Sole Trading Concern | Joint Stock Company |
| Meaning | Sole proprietorship is owned, managed and controlled by one person. | Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by board of directors. |
| Formation | Sole trading concern can be formed easily. It is started as soon as the owner decides. | Formation of a Joint Stock Company is difficult, costly and time consuming. There are many legal formalities needed to form a joint stock company. |
| Liability | The sole trader has unlimited liability. | Shareholders have limited liability. It depends upon unpaid value of shares. |
| Numbers of Member | Sole trading concern is owned by a single person. | The minimum number of persons needed to start a private company is two and maximum is fifty. Minimum number of public company is seven and maximum is unlimited. |
| Registration | Sole trading concern need not be registered. | Joint Stock Company has to be compulsorily registered. |
| Act | There is no Act for a Sole Trading Concern. | Companies have to follow Indian Companies Act, 2013. |
| Legal Status | A Sole Trading Concern does not have a legal status. | Joint Stock Company has a legal status. |
| Secrecy | It is possible to have maximum business secrecy in a Sole Trading Concern. | Business Secrecy cannot be maintained’. Books of accounts have to be kept open for inspection to shareholders. |
| Capital | s there is only one owner, less capital is available for business. | Capital is collected from shareholders in the form of shares. Huge capital can be collected for business. |
| Stability | A Sole Trading Concern does not have a stable life. Life of the sole trader and his concern are one and the same. | The company enjoys a long stable life. |
