Incorporation


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Related to Incorporation: articles of incorporation

Incorporation

A legal process through which a company receives a charter and the state in which it is based allows it to operate as a corporation.

Incorporation

The process by which a business becomes a legal entity separate from its owner(s). Incorporation presents a number of advantages: becoming a separate legal entity means that the business itself makes or loses money, which protects owners from liability for its debts. Likewise, a corporation is taxed on its earnings separately from its owners, and, in many countries, the corporate tax rates are lower than personal tax rates. The process of incorporation involves writing articles of incorporation and registering them with the appropriate government entity in order to receive a corporate charter, which confers corporate legal status.

Incorporation.

When a business incorporates, it receives a state or federal charter to operate as a corporation. A corporation has a separate and distinct legal and tax identity from its owners.

In fact, in legal terms, a corporation is considered an individual -- it can own property, earn income, pay taxes, incur liabilities, and be sued.

Incorporating can offer many advantages to a business, among them limiting the liability of the company's owners. This means that shareholders are not personally responsible for the company's debts. Another advantage is the ability to issue shares of stock and sell bonds, both ways to raise additional capital.

You know that a business is a corporation if it includes the word "Incorporated" -- or the short form, "Inc." -- in its official name.

incorporation

see COMPANY FORMATION.

incorporation

see COMPANY FORMATION.
References in periodicals archive ?
It was told that during the corresponding month, out of total companies registered 56% companies were issued incorporation certificate within just four-hours.
Moncecchi stressed that this agreement, added to other measures, such as the electric bus pilot of Cutcsa, the promotion of the use of electric bicycles and tricycles for distribution and, especially, the current regulation of Law 19.670, article 349 , which subsidizes the incorporation of Around 100 electric buses throughout the country are part of the path to cultural change.
The massive increase in the new incorporations is the result of the SECP's reforms in the ease of doing business, i.e.
In a notice on March 22, the SEC released for public comment the draft guidelines on corporate term, which sets forth the requirements for retaining a corporation's present corporate term, as specified in its articles of incorporation.
The most recent efforts stalled earlier this year, when a residential area under the control of a developer blocked Pinal County officials from moving forward with an incorporation petition.
Rappler had sought before the CA to reverse the January 11 decision of the SEC to revoke the certificate of incorporation due to allegations Omidyar's PDRs violate the constitutional restrictions against foreign ownership.
The services sector took the lead with the incorporation of 113 companies, trading with 104, I.T.
New Delhi [India], Jan 25 ( ANI ): In a bid to simplify the procedure to set up new businesses, the Government will launch a number of initiatives for making the incorporation process seamless.
Last week the shareholders of National Finance at an extraordinary general meeting (EGM) unanimously approved the merger by incorporation of Oman Orix into National Finance in accordance with the provisions of the commercial companies law.
Somalis in the Twin Cities and Columbus: Immigrant Incorporation in New Destinations
29, the PSE noted the company's amended articles of incorporation (AOI) approved by the Securities and Exchange Commission (SEC) on Dec.
In many studies, impact of residues incorporation on soil health had been reported to increase the organic matter and nutrient status and hence crop yields improvement (Ali et al., 2012; Krishna et al., 2004; Eagle et al., 2000; Misra et al., 1996).