Incorporation

Incorporation is the legal process when a Company is created, and thus has its own legal identity. The Company can then act under its own name, own Assets, and assume Liabilities.

Incorporation is a legal term defining the creation of a Company, officially bringing it into existence and enabling it to act as a Legal Entity. The Incorporation of a Company is a legal process that will define the characteristics of a Company through the Company Charter and the Articles of Association. The Company can then act as a separate legal entity from the owners, shareholders and can, for example, be listed on the Stock Exchange. A Company’s Assets are separate from the owners’ Assets. For example, the Bank Accounts will be under the Company’s name, not the owners name as are all the other Assets. The Company’s income is separate. The owners can receive Income from the Company in the form of dividends.