As you probably know, there are a number of ways to operate a business in Canada. Examples are a sole proprietorship, partnership, or corporation. If you are seriously considering incorporating, there are some of the basics:
Jurisdiction
You can choose to incorporate in any of the Canadian provinces or territorial jurisdictions, or one federal jurisdiction. Generally, it will either be the province or territory where you live or operate or to the federal jurisdiction in play. Federal corporations are covered under the Canada Business Corporations Act and they can operate anywhere in Canada, subject to provincial regulations. Provincial corporations are governed by provincial statutes and laws. If you are only incorporated in a single province but want to do business in another, you need to make an extra-provincial registration. There is a cost difference between federal and provincial filings.
Some of the things to consider when deciding on jurisdiction are where the business will be conducted, name choice and importance, and plans for future expansion.
Name
Choosing a corporate name can be more critical and more complex than you think. While there are no mandatory requirements, each jurisdiction has specific guidelines. In most cases, Corporations Canada will require distinctive and descriptive elements. Many proposed names are rejected. You should probably hire a firm that specializes in corporation names and have a stockpile of at least three choices.
The name needs to be available. That is, no one else is using it. There are computer programs that will help with the research.
Articles of Incorporation
There are basic decisions that need to be made. Attorneys specializing in corporations can help you as well as your accountants.
• Registered office location
• Classes and volume of shares that can be issued
• Share transfer restrictions
• Directors, minimum and maximum
• Business activities and restrictions
The articles must be signed in duplicate by at least one incorporator who is competent, 18 or older, and not bankrupt. Then all the paperwork, including name search, and filing fee must be filed.
Records
While waiting for approval, you need to start your record keeping. By law, you need to have specific corporate documents including, but not limited to:
• Copy of the Articles of Incorporation
• Bylaws
• Minutes of shareholder meetings
• Resolutions
• Minutes of Directors' meetings
• Directors register
• Securities register
• Share Transfer register
• Copies of all forms filed with the government
• Copy of any unanimous shareholder agreements
All of this needs to be organized for handy reference and is necessary for many corporate transactions.
Documentation
The first meeting of the Board needs to have written approval of:
• Bylaws
• Issuance of shares
• Election of directors
• Appointment of officers
• Shareholder agreements
• Any other resolutions
You will also need to apply for any permits, licenses or patents. There will also be some industry-specific regulations that you may need to take care of
Apply for a federal Business Number; register any non-corporate names; obtain a provincial sales tax account, Employer Health Tax, and worker's compensation.
Finances
You will need to establish a bank account and set up financial accounting (books). After all this, and all approvals, you can actually, legally do business.
Contact your Accountants today click on this link —> https://capexcpa.com/contact
- The Capex Team