What is Certificate of Incorporation? Definition & Meaning - Ikajo Glossary


Certificate of incorporation

A certificate of incorporation relates to the company or corporation formation. Usually, a state governmental entity or corporation issues a certificate to a merchant. The information in this certificate varies from country to country, but may include the following:

  • Type of the corporation – professional, cooperative, management, insurance.
  • Name of the corporation – the company’s name with endings as Company, Corporation, Incorporated.
  • Legal address – includes the country and state of your office’s registration.

The duration of the procedure may differ according to the country. For Europeans, getting the certificate of incorporation may take up to three days while others may require up to two months.

Most important, it is required to open a bank account. A certificate of incorporation confirms that your company is a legal entity. Also, it’ll show that the company constituted correctly. As one opens a bank account, he/she needs to take his/her identity documents, certificate of incorporation, and other documents about company formation. A certificate of incorporation is the only way to start receiving the income generated from your company’s sales.

Many business owners form companies online. That’s why the certificate of incorporation can also be in an electronic form.

So, a certificate of incorporation is a certificate that governmental or non-governmental institution issues to a business owner. The main aim of the certificate is to prove the proper incorporation and company’s existence.

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