| Government Company | Multinational Corporation |
| Meaning | Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually. | Multinational Corporation is a company which is incorporated in one country and has business units in several countries. |
| Capital | The capital is contributed by the Central Government or State Government or even by general public. | The capital is contributed by the shareholders or financial institutions in several countries. |
| Management and Control | Government Company is managed by Board of Directors appointed by government and shareholders. | Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country. |
| Establishment | Government companies are formed and registered under provisions of Companies Act, 2013. | Multinational corporations have to seek permission from the government and host countries. |
| Borrowing power | Government companies can borrow funds by the way of debt or issuing shares to the public. | Multinational corporation use resources of different countries. |
| Area of Operations | Government company operates within the local boundaries of a nation. | MNC operates in several countries, having headquarters in one country. |
| Motive | Government companies are service oriented and hence take interest in the social welfare activities of the country. | MNCs are profit motivated rather than service oriented. |
| Accountability | Government Company has to take its annual reports in the Parliament where its working is discussed and debated. Though it has autonomy in financial matters, it is indirectly accountable to the publics. | MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries. |
| Currency | They have to deal with single currency. | They have to deal with multiple currencies and exchange rates. |
| Resource availability | Government company uses resources of government and its employees are government employees and are permanent. | MNCS use resources of different countries and their employees are on contract basis. |
| Trust and Public Confidence | Government company enjoy more public confidence as they have government backing and support. | MNCS do not have government backing and support in host countries. |
| Example | Steel Authority of India Ltd., State Trading Corporation, Indian Oil Corporation, BHEL, HMT, etc | Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc. |
