It helps resolve naming conflicts when different packages have classes with the same names. This also helps us organize files within project. For example: java.io package do something related to I/O and java.net package do something to do with network and so on. If we tend to put all .java files into a single package, as the project gets bigger, then it would become a nightmare to manage all the files. We can create a package as follows with package keyword, which is the first keyword in any Java program followed by import statements. The java.lang package is imported implicitly by default and all the other packages must be explicitly imported.
package com.xyz.client ;