| No | Heading | public Enterprise | Public company |
| 1 | Formation | It is formed by an Act of parliament | It is incorporated by the promoters according to the company's act. |
| 2 | Ownership | It is owned by government/ general public | It is owned by the shareholders |
| 3 | Purpose | To provide essential services to the general public | To make profit for the shareholders |
| 4 | Management | The government appoints a Board of directors | A Board of directors is elected by shareholders |
| 5 | Sources of funds | Provided by government through subventions, subsidies or grants/ tax payer money | It is provided through sales of shares, debentures and credit facilities. |
