What is incorporation?
Incorporation, also known as the formation of a corporation, is the legal process through which an organization or entity is created and legally recognized by a state or country. This process can vary significantly depending on the jurisdiction, but generally requires filing documents such as articles of incorporation and issuing stock to initial shareholders.
What is an incorporation certificate?
An Incorporation Certificate is an official document that officially recognizes the formation of an incorporated entity. It is typically issued by a government agency or similar authority and contains the name of the organization, its address, and other relevant information, as well as a date of issue. This certificate is important because it confirms that the company has been legally created according to applicable laws and regulations.
Why incorporation certificate is important?
Incorporation certificates are usually requested when an organization wishes to obtain recognition as a legally-established business entity. Generally, once obtained, this certificate serves as proof to other parties such as banks, suppliers, customers, and even potential investors that the company is legitimate and authorized to operate in its jurisdiction. In addition, having an incorporation certificate may help in obtaining necessary licenses for operations or tax benefits from certain jurisdictions.