Are you looking to incorporate a new business but don’t know how to? We can understand your situation and we want to help you in this process. Opening a new business and incorporating it can be a daunting task, especially when the risk is high, the recession is looming, and the funding is tight in the market. However, if you follow a step-by-step approach, then this process can become a lot smoother and much more feasible. Follow the below listed six steps: process yourself or hire any business law firm to incorporate a new business in Canada.
Ascertain the Corporate Jurisdiction
You can incorporate it in any one of the 13 provincial jurisdictions or the single federal jurisdiction of incorporation. However, it’s mostly seen that the choice is limited to the local territory of the incorporator or to the federal jurisdiction. So, choose the corporate jurisdiction after thoroughly researching the benefits and limitations that you will get by choosing provincial or federal jurisdiction. Thinking this through will help you to make a sound choice.
Select your Business Name
Select a corporate name that describes your corporation in a minimum of 4 to 5 characters. Moreover, the name must describe the workings of your business. Choose three alternate names beforehand in case other names get rejected by the higher authorities. Don’t forget to search the business name availability by using the NUANS or CIDREQ systems. It will help you to select the most appropriate and describing name. You can select the name both in English and French languages. The corporate name must include Limited(Ltd.)/Incorporated(Inc.)/Corporation(Corp.).
File articles of incorporation, then submit and register them
Then, file articles of incorporation with a suitable government agency. Take appropriate legal and tax advice as well from the incorporator before completing the articles of incorporation. Get the articles of incorporation signed in duplicate by an incorporator after completing them. Submit and register the articles of incorporation and relevant documents, along with the name search and filing fee.
Buy the minute book and corporate seal
Purchase a business minute book(binder) to keep a copy of the articles of incorporation, corporate by-laws, resolutions, meeting minutes of shareholders and directors, securities and share transfer registers, copies of government forms and shareholder agreements. Also, buy a corporate seal to emboss your corporation’s name on the legal documents to verify their validity.
Sign the shareholder agreement
Sign the shareholder agreement by looking at the corporate by-laws, share issuance to the shareholders, directors, corporate officers, business resolutions and the final agreement as well. Organize your business structure as soon as your corporation is created.
Avail other licences and permits
Once you set up your corporation, avail additional licences, and permits, and fulfil requirements like:-
- Registering your corporation’s federal business name.
- Corporate income tax.
- Employer payment deductions.
- Register the non-corporate business names.
- If possible, register for a provincial sales tax account.
- Register for employee compensation.
- Register for provincial employer health tax.
- Get any other essential licences from provinces or municipal corporations.
Incorporating your new business in Canada can become very easy if you follow the above-listed six steps. Just follow the whole process diligently, and that too in a step-by-step phased manner. You will incorporate your new business easily, practically, and that, too, hassle-free!
If you still feel that it is difficult for you, then let us tell you about the best business law firm that can help you incorporate your new business. Their name is Dale Streiman Law LLP. Avail their business law services today to incorporate your new business in Canada.