Both corporation and incorporation words may seem friendly to you if you are in the business world. Sometimes they confuse people, especially the laymen, hence we are going to discuss the difference between corporation and incorporation in the present blog. This will give you a clear understanding of both these terms in detail and you will have no more confusion regarding the same. Generally corporation is an entity and incorporation means the formation of an entity. People who are in the business world must have a clear understanding of these two terms, because they are in their use every now and then and also important with their business prospects.
What do you Mean by Incorporation?
In layman language incorporation means formation of a business by registering it with the lawful means and mechanism. You may have heard many times the term “company incorporation”. It means formation of the company by following all the rules and regulations given under the Companies Act of 2013. This term is usually used for the formation of the corporate b=odies like private limited company registration, public limited company, LLPs, OPCs etc. for other firms like proprietorship or partnership the term used is registration not incorporation.
The process of incorporation included filing a form for name approval, then for registration of the company, filing clarification, drafting rules and regulations of the company, preparing documents like MOA or AOA of the company etc. the process of incorporation is way lengthier than registration process. Also it will take assistance from any professional who can do your business incorporation easily and smoothly with his experience and skills in the same field.
What do you Mean by Corporation?
This term, Corporation is used for the corporate bodies. Corporate bodies are the companies which are formed by following the proper procedure in front of the Registrar of the Companies. Corporation includes entities like Limited Liability Partnership firms, One Person Companies, Private and Public Limited Companies etc. this is a formal term which indicates a registered corporate body. Incorporation of corporations can be done mostly online with the help of an expert. If you want to incorporate any kind of corporation you can contact us in order to resolve your doubts.
Difference Between Corporation and Incorporation
Some of the key difference between corporation and incorporation are:
| Corporation | Incorporation |
| They are business entities | This is the process of forming business entities |
| Corporation includes all the corporate entities | Formation of corporate entities is called their incorporation |
| Corporations are registered before the Registrar of Companies or ROC | Incorporation process is completed by submitting application before the Registrar of Companies that is ROC |
| Corporation is the name given to the corporate entities | Incorporation includes the process of their formation as well as working |
| Private Limited Company, Public Limited Company, LLPs, OPCs etc are kind of corporations | Formation of business entities like Private Limited Company, Public Limited Company, LLPs, OPCs etc is called their incorporation |
Pros and Cons of Incorporation
In order to make the difference between corporation and incorporation, here we have discussed regarding some of the key pros and cons of Incorporation are discussed below in the table:
| Pros of Incorporation | Cons of Incorporations |
| The process of incorporation is mostly online | Sometimes it becomes difficult to resolve the query due to its online procedure |
| Less paperwork is required | Lot of online formalities makes its registration process hectic |
| Easily can be done with the help of the professionals | Needs assistance of expert which will be an extra expense to the business owner |
| No need to travel for this from here to there | Sometimes there will be unnecessary delays |
| No need to go to different windows of the government offices | This online process is not user friendly |
Pros and Cons of Corporations
Some of the key advantages as well as disadvantages of the corporations are discussed below in the table in order to make the difference between corporation and incorporation clear:
| Pros of Corporation | Cons of Corporation |
| They are separate legal entities | Lot of formalities and procedures needs to complete for the incorporation of the corporations |
| They are reliable and credible | There are lot of compliances of the corporation which must be comp-leted on time because non compliance may result into penalties and fines |
| They are transparent as everything regarding them is available on the MCA that is called as Ministry of Corporate Affairs official website | Decision making is not quick which delays many works |
| Such entities can easily attract both the investors as well as customers | Management and operations are not that easy |
| Business expansion is easy for such entities | Corporations are liable for their own acts which means they have separate legal liability, hence in case of any loss you cannot blame their directors or shareholders |
Process of Incorporation of Corporations
Understanding the process of incorporation will make the difference between corporation and incorporation more clear. Follow the steps given below in order to incorporate the corporations in India under the Registrar of Companies:
- Collect all the documents related to the key personals of the corporation
- Must select a proper business structure for your business
- Must check the minimum requirements of the business corporation you want to opt for
- Must choose a good and unique name for your entity
- File the application for the name approval of the corporation
- Once the name is approved file application for the incorporation of the corporation
- Attach all the required documents with the application and submit it with the fees
- Now it will be examined by the registrar of the companies
- If everything finds appropriate your registration certificate will be issued
Conclusion
The two terms which have been discussed above are corporation and incorporation, they are two different important terms of the business world. Till now after reading the above content you may have a proper idea about these two terms called corporation and incorporation. Still if you think that you are having doubts or confusions with respect to these two terms you can contact our team of experts who will guide about the same. As an entrepreneur whenever you want to incorporate a corporation you must understand all the things with respect to them clearly including their meaning. That is why we have discussed these two terms here.
