A company is much more expensive than a partnership, both to establish
and operate. A company is formed when a number of people or, firms, combine their capital and then the share holders become
the owners. A company has a separate legal identity from its owners and share holders have limited liability. A company can
also own property and therefore have tax advantages such as greater access to finance because the company pays its own tax.
Unfortunately, there are greater government regulations and the cost to establish a company can be high. The owners may also
not be involved in the companies operations and so therefore will not have any say in decision making. Public companies can
have up to fifty shareholders with a minimum of only two, where as, a private company has to have five or more shareholders.
A private company has the syntax Pty Ltd (Proprietary Limited) at the end of the company title and a public company will just
show Ltd (Limited). Within a private company, the transferring of shares is restricted whilst a public company can freely
distribute there shares over the Australian Stock Exchange ASX. Also, a company must comply with many legal requirements which
are set out by the National Companies Code and need to be registered at the Corporate Affaires Office.