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- This topic has 1 reply, 2 voices, and was last updated 3 months ago by Belissimo.
July 22, 2022 at 7:54 am #108125ConfidusSolutionsParticipant
In general, in order to register a company in Canada, one must meet the main registration requirements that may apply to his or her company. This should be done due to the need to inform the government about one’s business formation plans as well as to inform potential clients about one’s business status and commercial activities.
Company name registration
Before registering a company, it is quite important to think about what you want to name your company. The company name can be registered through any of the service providers who have a contract with the Department of Government and Consumer Services. After choosing the right name, the entrepreneur(s) must decide which type of company he or she wants to set up.
Choosing the right corporate structure
There are many business structure types that can meet one’s expectations. For example a partnership or limited partnership, a corporation, a cooperative, a sole proprietorship etc. If one decides to register a limited partnership (LP) one needs to have a clear idea of what it is and be aware of the formalities involved are fulfilled.
Choice of form of incorporation
One must also choose whether to incorporate the company at the federal level or in a specific province or territory. However, the most important thing to remember when registering a company in Canada is that most territorial and provincial governments require company registration with their governing agencies: the Federal Corporations Directorate and the provincial registries.
There are certain rules, procedures and fees for registering a company in each province, however some of the requirements can be considered basic and can apply to any location in Canada. For example, company name registration is generally a mandatory legal requirement, but Newfoundland and Labrador is the exception to this rule as this province does not require the registration of partnership or sole proprietorship names.
LP Registration Requirements
Limited partnership means that there are one or more general partners who have unlimited liability and one (or even more) who have limited liability depending on their contribution to the company within such a partnership.
Submission of documents
Therefore, the formation of an LP requires the submission of documents such as: Declaration of Limited Partnership (Form 1), Declaration of Out-of-Province Limited Partnership (Form 4), Notice of Offices, Memorandum, Articles of Incorporation if one has an Out-of-Province Limited registered partnership. LP can be registered if these statements are filed with the fee under the Limited Partnership Act. The law can also be found online and submitted to a specific province’s government department.
Legalization of documents
All documents must be legalized. Legalizing documents in Canada can cost several hundred dollars, depending on the consulate you choose. The documents must then be signed and sealed by a Canadian notary public and notarization can be done through one of Global Affairs Canada’s authentication services.
The shareholders of LP
At least one general partner is required for the registration of a limited partnership, who can be resident in any country, natural or legal person. In this way, LP is managed by its general partners, unless the articles of incorporation allow the general partners to appoint a manager. There is no minimum or maximum contribution required to set up such a partnership.
Share Capital and Government Fees
For federal incorporation, the corporate incorporation fee is $200 if filed online through Corporations Canada’s online filing center, or $250 if filed by other means. There is a fee for filing the Articles of Incorporation. An additional fee is included for obtaining the NUANS name search report to confirm that the company’s corporate name is unique and acceptable. The cost of founding a province can vary from province to province. Additional state fees include: filing an annual report, extra-provincial registration, the cost of a corporate seal, or preparing and filing corporate income taxes.
Tax number acquisition
Tax-wise, partnerships are treated like sole proprietorships – each partner reports income and pays income tax on his or her personal income tax return. Tax number acquisition requires: social insurance number, a copy of the Canada Revenue Agency’s (CRA’s) Business and Professional Income Guide, personal business records, including filing in Industry Classification Code for the business or business number, details of partners and other amounts deductible from the share of net partnership income. Depending on business type, businessmen might need to register for GST/HST as well as to register for provincial sales tax (PST).
It is necessary to open a bank account in order to operate with company’s financial flow. This will require copies of such incorporation documents as the Articles of Incorporation, particular banking resolutions. All the authorized persons will have to fill in forms at the bank before they’re allowed to access the corporate account. This can take 1 to 3-4 days depending on a bank.
One might need to buy business insurance, depending on business type. It can be necessary to get business licenses before the company will be able to operate legally within the chosen municipality.December 20, 2022 at 1:07 am #111672BelissimoParticipant
I am sure that after registering a new company, any novice entrepreneur should think about choosing insurance coverage in order to have reliable protection against risks and force majeure. I suggest you pay attention to the commercial insurance website where you can get fast and professional help on any issues related to small business insurance.
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