Company incorporation is the legal process of creating a new business as a separate legal entity, separate from its owners, which provides benefits like limited liability, increased credibility, and tax advantages.

Company incorporation is the legal process of establishing a business as a separate legal entity, distinct from its owners, by filing with a government authority. This process gives the company its own legal identity, allows it to enter contracts, own property, sue and be sued, and most importantly, provides limited liability, shielding the owners’ personal assets from business debts and lawsuits. After incorporation, the business is officially recognized and can use terms like “Inc.” or “Ltd.” in its name.