Creating an Incorporation
Incorporating Your Business in Canada
Incorporation is the process of establishing a new legal entity known as a corporation or company. A corporation enjoys the same rights and obligations under Canadian law as a natural person.
Benefits of Incorporating:
Incorporating your business offers various advantages, including:
Creation of a separate legal entity
Limited liability protection
Access to lower corporate tax rates
Improved access to capital and grants
Continuous existence regardless of changes in ownership or management.
Steps to Incorporating:
To register your business as a corporation in Canada, you will need to follow these steps:
Choose a Business Name: Decide between a Numbered Company or a Named Company.
Complete Articles of Incorporation: Provide necessary details and submit the articles of incorporation.
Establish Registered Office and Board of Directors: Set up the initial registered office address and appoint the first board of directors.
File Forms and Pay Fees: File the appropriate forms and pay the required fees for incorporation.
Process Application: Allow time for processing your application.
Complete Provincial and Territorial Registration: Register your corporation provincially and fulfill any additional requirements.
Additional Considerations:
For a Named Company, conduct a name search and obtain a NUANS report before finalizing the business name.
Determine the jurisdiction of taxes by registering for each province where you will provide services.
Useful Resources:
For Named Company NUANS report: NUANS Report Application
By following these steps, you can successfully incorporate your business in Canada, enjoying the benefits of a separate legal entity and limited liability protection.
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