INC Full Form is Incorporated. The term Incorporated is used in the relation of a company or a firm. When the procedure of incorporating a company or a firm is fully finished then, such company or firm uses this term in their name.
Meaning of Incorporation in the name of the Company
When a company is in its initial stages of being formed, the first step of the company formation is its Incorporation.
The foremost thing that the owners of the company have to decide is the kind of legal structure that they want to have for their company. Among various other options to put after your company, one option is INC.
Now the next question that must be popping in your head must be what is INC. Well, let’s end this confusion and discuss INC in detail.
The INC term after a company name showcases that the company is legally incorporated. It sends a message to the world that your company is valid and legally registered in the eye of law.
Other than INC, there are a few other abbreviations available to put after the name of your company as well, and they are as follows:
- Corp. – The term Corp means Corporated. A corporated company may or may not be incorporated. The difference between INC. and Corp. is that a company after which INC. exists such a company is an incorporated company. However, the company after which the term Corp. is put, such company’s incorporation is a question of doubt.
- LLC. – The LLC term means Limited Liability Company. The company that puts LLC after their name has a special condition of not paying any tax liability. This type of company does not hold any liability to pay taxes. Instead of the company, its members pay the tax liability.
- Co. – Another popular abbreviation is Co. This stands for Company. A company after which the abbreviation Co. exists shows that the company’s incorporation is doubtful.
What does the Incorporation of a Company stands for?
Using INC after the name of the company showcases that the company is legally incorporated in the laws of any one state.
Incorporation of a company states that the company’s status is legal and valid to do business. The incorporated companies attract all the necessities of following rules and regulations as stretched out in the Companies act.
Process of Incorporation
The process of incorporation includes several rules and regulations that have to be duly followed. The steps to incorporate a company legally are as follows:
- Decide on a suitable name for your company. Make sure that the specific name is available and no other company is registered with that name.
- Select the appropriate type of corporation for your company. LLC, CO. or Corp. or INC.
- Select the board of directors of the company.
- Choose the type of shares that will be issued for the stockholders. The options are preferred or shared with or without voting rights ordinary shares.
- Employ a professional to complete the legal procedure and documentation of the company on the company’s behalf.
- Submit AOA and MOA to the appropriate authorities.
- Stretch out the bylaws of the company.
- Stock to stockholders.
The abbreviation of INC. after your company’s name shows that all the procedures and steps of getting your company incorporated are checked.