6. Key points

• Incorporation creates a new legal entity with powers similar to those of a natural person.
• An incorporated association can operate a business to help fund its objects or purposes, but commercial trading cannot be the major part of its activities.
• An incorporated association does not need to register a business name to conduct a business if it wants to trade under its incorporated name. However, if the association wants to trade a part or all of its business under a different name, it will need to register the business name with Commerce.
• An incorporated association must have a common seal, which is the official stamp of the association. The common seal can only be used by those people authorised to use it in accordance with the rules.