What is a federal charter?


Quick Answer

A federal charter, or congressional charter, is issued by Congress and defines the mission, authorities and activities of a group or business and creates a legal entity out of that group or business, according to McClatchy DC. The federal government issued charters from 1791 to 1992, according to Wikipedia.

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Full Answer

According to Investopedia, charters usually include the name, head office location, date of incorporation, amount/type of stock issued and any restrictions on areas of business activity. McClatchy DC states that a federal charter is similar to being incorporated at the federal level. Groups with federal charters include Girl Scouts of America and other veteran, fraternal, nonprofit or financial groups.

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