TheTaxHeaven Dictionary - Know the meaning of tax

Private Sector

The private sector consists of businesses owned by individuals, not government. These companies aim to make profits.  

Private sector companies function independently, focusing on profit and customer satisfaction. They can be new or converted from public sector enterprises.  

The private sector contributes to economic development and plays a significant role in the economy.  

Private Sector Businesses

  • Sole Proprietorships: A business owned and financed by one person. 

  • Partnership: Businesses owned and controlled by more than one person, sharing profits and losses. 

  • Small and Medium Enterprises: Enterprises with an annual turnover of 250 crores or less. 

  • Multinational Corporations: Companies operating in multiple countries, owned by shareholders who elect a board of directors to run the company. 

  • Trade Associations: Associations serving specific industries, like FICCI for trade matters. 

  • Trade Unions: Unions serving professionals in an industry, like unions for lawyers or doctors.