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Incorporation (business) Incorporation is the formation of a new corporation (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, sports club, or a government of a new city or town.
'Incorporation' is the legal process whereby a 'corporation' is created. A corporation is a legal entity and is often referred to as an 'artificial person.' The corporation has an existence separate and apart from the person or persons who were involved in having it created.