A corporation is a legal entity founded to do business. It is a group or company that operates a certain business. It is the second step of forming a business or organisation. It has complete authority over administrative affairs such as personnel, salary, provident fund to employees, and so on. It is a secondary function based on the first function of Incorporation. Incorporation is the legal procedure for establishing firm corporations. It is abbreviated as Inc. The company can choose between the Corp. and Inc. extensions. So, let’s take a closer look at Corporation versus incorporation by hong kong incorporation services.
- CORP is a common abbreviation for a corporation. Corporations can refer to educational, business, private sector or government organisations, or any other form of institution. Once you have registered as a company, the word corp should be used in all legal structures together with the corporation’s name.
- The new corporation will be formed if we register a new business name and fulfil the necessary legal processes in hong kong accounting. It has its own taxation system. Corporations are administered by a board of directors, which is elected by their shareholders.
- Incorporation is the first step in officially registering a firm as a Corporation. Incorporation outlines the benefits of forming a distinct company for a new firm. Both Corporation and Incorporation have limited liability, which provides some protection over the assets of the partners. This involves hiding personal assets from legal concerns such as taxes, funds, credits, ownership, and so forth.