Canada remains one of the world’s most business-friendly countries. With tax incentives, a progressive economy, and proximity to the United States, businesses will continue to have endless opportunities to thrive. However, enjoying the benefits of running a company in Canada starts with incorporation.
Applying for incorporation before making any major business decisions can be tremendously helpful. It can save you from making major errors that may lead to wasted time and resources.
Leading with incorporation also helps you avoid non-compliance issues with federal or state legislation, resulting in penalties and fines. More importantly, the incorporation procedure provides many resources to help guide you in structuring your business, especially for small business owners.
In this guide, you will learn practical steps to registering your company with ease. Follow these steps to achieve incorporation in 24 hours.
1. Choose and Register a Corporate Name
The first step to federal incorporation is registering a formal means of identifying your company in the country. Registering a name sets the tone for establishing the company and prevents schoolboy errors that may result in long-term legal trouble.
Here is what you must do in the first stage of incorporation:
- Use a Unique Name
A company’s name is also an opportunity to make a positive first impression and market its offerings to potential clients. Therefore, choose a name that is relatable and accurately reflects what the business has to offer.
While you may have conceptualized a name that perfectly describes and distinguishes your company, it is advisable to have other options. There are currently over 1.3 million businesses in Canada, and your preferred name might have been preregistered. Having alternative options ensures that you are not stranded during the incorporation process.
- Pick Your Preferred Name Class
Canada recognizes two categories of names for corporations: numbered and word names. Word names are made up of only words or words with symbols. For example, “Jack & Jill Corp.” combines words (or letters) and a symbol followed by a legal suffix.
Meanwhile, numbered names consist of figures like “321 Canada Ltd”. Using a numbered name is the simpler option. If coming up with a suitable corporate name seems overly challenging, Corporation Canada can assign you a numbered name during the incorporation procedure.
- Include the Legal Designation
Corporate organizations in Canada must attach a suffix to their names. This addition can come in three different forms, depending on your preference and business structure. You may include Incorporated/Incorporée (Inc.), Limited/Limitée (Ltd.), or Corporation (Corp.) as the designation of your corporate identity.
2. Establish Key Individuals and Directors
- Identify Individuals with Significant Control
The Canadian Government wants to know the owners or individuals responsible for making the major decisions in registered corporations for transparency and accountability. Thus, you must identify all individuals with significant control (ISN) in the organization. You will forward their personal information, which may include their control over the company.
- Adhere to Crucial Requirements
Your company must have a designated board of directors to be federally incorporated in Canada. They play an important role as the faces of your business. Their actions may have financial and public relations consequences. So, gather your list of nominees and vet them before deciding who makes the team.
Make sure your directors meet the Corporations Canada requirements, including residential obligations. For example, at least 25% of the directors in every corporation must reside in Canada. Upon confirming the eligibility of your directors, you will submit their personal information, such as full names, addresses, and roles in the company.
- Register a Company Address
If you will likely occupy where you currently operate for the long term, it must be registered during incorporation. Whether you are a contractor or a partnership, you must register an office address where you will keep company records. This is where you will be served notices and corporate documents by state or federal agencies.
By registering this address, the government assumes that you will receive any document or notice forwarded to your company. If you will be moving to a different location in the future, make sure you notify Corporations Canada to update your company information.
3. Get Your Articles of Incorporation
The articles of incorporation are one of the most crucial documents. It details all the vital documents on your company’s establishment. In Canada, the articles of incorporation must be filed in any or both province’s official languages (English and French).
If you own a small company or are a contractor, Corporations Canada can help you with company registration. When selecting your business structure, pick the “basic structure” option. In this option, the major steps and requirements for structuring a company have already been pre-packaged. It speeds up your incorporation process while giving you room for future updates.
However, if you have a clear indication of your company’s needs and goals, you may opt for the “custom structure” option. This option gives you room to add specific information, such as;
- Corporate name
- Director’s list
- Company bylaws
- Company share structure and restrictions
4. Submit Registration Request
Submitting the incorporation request is the last stage of the process. This is where you will forward all your personal and business information, along with accompanying documents for incorporation assessment. If you want to submit your request for incorporation online, you will need digital copies of all required documents.
Applying for incorporation online is the fastest and most convenient way of performing this task. You may send your application online to Canada Incorporation Agency.
- Pay the Application Fee
You will pay a certain amount while submitting your application request. If you’re applying online, the application submission fee is $200. Once Corporations Canada approves your application, it will issue you a certificate of incorporation. This signifies that your company is now a registered entity and can operate in Canada.
- Provincial Registration
Although federal incorporation approval allows you to run a business in the country, you may need to register with the province where you will operate it. This registration process ensures that you are properly taxed by the province and abide by the local labor code.
Bottomline
Incorporation is the only way to legally run a business in Canada. It can open doors of opportunities for business expansion locally and globally with full compliance. The process is simple thanks to the helpful insights and templates available during your application.
However, if the procedure seems intense or you don’t want to risk errors that may jeopardize your application, consider working with a certified member of Corporation Canada.
These experts are well-versed in the Canadian incorporation procedure, thanks to their extensive knowledge, qualifications, and connections. They can help you eliminate guesswork and complete the process in under 1 hour with just a few steps. Contact Canada Incorporation Agency today.
