A business charter is a general document made by the company’s leaders and filed with the state. It says what the business is for, where it is located, how long it will last, and what kinds of shares are available. A business charter is also called an articles of incorporation or a corporate charter.
When a business is registered with the secretary of state’s office in a certain state, the charter lists the name of the business, the name and address of the registered agent, the names and addresses of the first directors, and the name of the person making the business charter. The business charter should also say what kind of corporation the company wants, like a non-profit, non-stock, or stock corporation. Usually, the business charter must also include the reason why the company was started.
A business charter also talks about the company’s core values, goals, and how it runs. The business charter is often used by company executives as a guide or mission statement when they do strategic planning and evaluations. For example, if one of the company’s goals is to put health and safety first by taking care of the environment, executives usually refer back to this goal when talking about safety policies in the workplace and strategies for recycling and saving water.
