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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.
Definitions (3). 1. General: Formal document (instrument) that creates a legal entity, exemption, immunity, privilege, or right. In case of an organization, a charter defines or mandates its function(s) and lays down rules for its conduct or governance. 2. Incorporation: Alternative term for articles of incorporation, the US equivalent of the UK's memorandum of association. 3.