Incorporation is the legal process used to form a corporate entity or company. A corporation is a legal entity that is separate from its owners, with its own rights and obligations and is the most widely used legal vehicle for operating a business.

Incorporation provides many advantages for a business and its owners: protection from personal liability for business debts, improved access to financing for business activities, simple transfer of business ownership through the disposal of shares and increased potential for tax planning through access to corporation tax rates and international tax treaties.

Companies can be formed in most countries in the world. The legal procedures for formation and organisation may differ from jurisdiction to jurisdiction, but most have certain elements in common – drafting the ‘Articles of Incorporation’ (which set out the primary purpose of the business), selecting the name and location, and, if appropriate, the number of shares and class of stock that are issued. Incorporation will also involve jurisdiction-specific registration information and fees.