Formation includes paperwork and other formalities involved in creating the company on Individual, LLP and Partnership profile.
Incorporation is the legal method used to establish a business or organization. A corporation is a nascent legal entity that separates the company's assets and income from its owners and investors.
Corporations can be incorporated in almost any country in the world and are known by words such as "Inc." or "Limited (Ltd.)" in their names. It is a way of declaring a company legally independent of its shareholders.