Full Form of INC :
INC Full Form is Incorporated (Business). INC refers to the formation of a new corporation, which is now a legal entity and is recognized as a person under the law. The corporation can be a non-profit organization (abbreviated as NGO), a business, a government of a new town or city, or a sports club. In other words, a corporation is an individual legal entity. It is liable for its debts. It can sell stocks and it pays its taxes based on earnings. An Inc is allowed to sell its stocks to raise finance. A corporation can continue to remain an entity even after the director passes away or even after the stocks are sold out. A corporation has to be established under state law. This has to be done by submitting an application to the State secretary. It is also expected to file articles of the Inc. The Small Business Administration of United States suggests that Small Businesses must not become Inc. unless they establish themselves as larger companies.
In order to secure the ‘Inc’ after the name of the corporation, the entity has to furnish information, which may differ from one to another. However, there is certain common information, which is usually required by almost every nation for the purpose of incorporation and hence, all such information must be necessarily be included in what is called the Certificate of Incorporation. The information includes a description of the purpose and business that the company would carry out; the name of the corporation, which must not be misleading; declaration of the names of the directors to the corporation; the minimum value of share; declaration of the legal address of the corporation concerned.
Many would ask why there is a need to have the corporation name suffixed with Inc. Well, there are several legal benefits that are not otherwise accorded to a corporation. Benefits include protection of the personal assets from the claims of lawsuits and creditors; a considerably hassle-free transfer of ownership; ensures durability in a corporation; allows a corporation to go for acquisition of its own credit rating, etc. In the United States of America, the issue of incorporation has seen a string of lawsuits and important decisions on the nature of incorporation in the country have been pronounced. It is to be noted that the international standpoints regarding the nature and benefits of incorporation are not exactly commensurate with one another, however, each one of them accepts the importance of incorporation in the oversight of corporate affairs.
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