Incorporation Company Definition

The process of incorporation involves creating a new corporation. This corporation could be a business, nonprofit organization, sports club, or local government. The process is generally very simple, so long as the owner is willing to pay the fees. Incorporating a business is a great way to start a new business, but there are some things that you should know about this type of business entity. Here is a quick definition of what an incorporation company is.

Incorporation Company Definition

A corporation is a legal entity owned by its shareholders, who purchase a share of the enterprise’s profits. Shareholders have limited liability, which means they cannot lose more than the amount of money they invest. Shareholders also have a limited amount of control over the company’s finances, and they can transfer their shares to other investors without re-establishing the corporation. A corporation also has a legal personality, which means it can make contracts and hold property in a common name.

What is Meant by Company Incorporation?

When a business becomes incorporated, Singapore incorporation is considered a legal entity and is protected by the law. Typically, an incorporated business will include the word “limited” after its name, but there are many companies that don’t have these suffixes.

Apple Inc. was incorporated as a company, and Microsoft Corporation is formalized as a corporation. Incorporating a business also allows an owner to protect his or her assets from being liable for the business’s debts. Additionally, an incorporated company is taxed at a lower personal income tax rate, which is beneficial for business owners.

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