What distinguishes a corporation by prescription?

A corporation by prescription is recognized legally even if it does not meet certain formal requirements typically expected of a corporation. This legal recognition occurs through the passage of time or the actions of the corporation that demonstrate its existence and functionality, despite the lack of strict compliance with the relevant laws at the outset. Such an entity might be functioning in a manner akin to a corporation, engaging in business activities, attracting investors, and entering into contracts, which can ultimately lead to a legal acknowledgment of its corporate status to protect third-party interests and uphold the integrity of transactions.

This distinguishes a corporation by prescription from other types of entities or corporate structures that must achieve formal recognition through stringent compliance with statutory requisites, which is not necessary in this case.