If you are planning to incorporate your business, then you are on the right track.
Limited liability, great planning opportunities and tax advantages are just a few reasons why a lot of people incorporate a business. Below you will find more details about corporations.
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Learn about incorporating Federally
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Learn About Incorporating a Business Federally in Canada
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Step 1 - Advantages of Incorporating your business.
A corporation is a unique legal entity and it is separate from the people who own its shares.
1. Limited personal risk. The greatest advantage of incorporation is the limited liability that it confers on shareholders with respect to debts, obligations and liabilities of the corporation.
2. Number of Owners. Incorporated companies can potentially have an unlimited number of different owners. If the business has or is planning on having a number of owners, incorporation is preferable. First, it is easier to transfer ownership in the business, as all the owners have to do is acquire or sell their shares in the company. In addition, owners/shareholders are only liable to the extent of their shareholdings. They are not liable for any other owner’s personal debt or to their creditors as may be the case in a partnership.
3. Government Grants. Some government grants and programs are only offered to incorporated businesses.
4. Ability to raise capital. The ability to issue various classes of shares with preferences as to dividends, redemption or convertibility and to utilize bonds or debentures greatly enhances a corporations ability to obtain funds for expansion or development.
5. Employees. Corporations can offer shares to their employees as a form of profit sharing incentive thereby sharing in the profits and performance of that corporation without affecting control. The performance of the company therefore affects all and is an incentive for employees to improve performance and thus improve the value of their shares and the profits the company produces.
6 . Possible tax advantages. Small Canadian controlled private corporations are taxed at approximately half the regular rate on the first $500.000 of active business income in each year. A corporation also has additional tax planning and income splitting arrangements available.
7 . Continuous existence & ownership is transferable. The death or withdrawal of a shareholder does not affect the existence of the corporation, which enjoys perpetual succession.
8. Ability to hold title to real estate and enter into contracts. A corporation can own real estate and sign contracts under corporate name.
Step 2 - Choosing the right corporate name.
Choosing the right name for your new business is an important decision. You want a name that will draw potential customers, help clients identify your company and build your business image. A name that is easy to remember and provides information about the products or services you offer is always a good choice. Choose a distinctive name to stand out from your competitors. Make sure the name is not misleading or confusing in its description of the goods or services you will provide.
The first step is to decide if you will have a name for the corporation or use a "numbered company". There is no requirement for the corporation to have a name. You can incorporate a company using a number; for example "8195678 Canada Inc.". Upon successful registration the Registrar will assign the next sequential number to the corporation as part of its name. A corporation incorporated in this way is a "numbered company".
Most people prefer to have a name for their corporation: to give it a unique identity, to avoid confusion with other corporations, and to give a general idea of the nature of the business to be carried on by the corporation.
Step 3 - Check availability of the proposed corporate name
Before making a final decision on your corporate name and ordering forms or stationery, you may want to know if someone else is already using the name. You can do a Preliminary name search that will allow you to check up to 3 names for $15 plus tax.
A more accurate NUANS search would be advisable if you want to be absolutely sure that your name is not used by someone else. You can order a NUANS here. The cost is $39.95 plus tax per each name you search. Please note that a NUANS search is mandatory for registering a Federal Corporation in Canada.
All names for federal corporations must be approved by a government examiner. Any name that is confusing or similar to an existing name would be rejected. Once a name is rejected, you would have to start the process again and pay new fees. You must select a unique name for your business in order to get it approved.
Once you have selected a particular name you can perform a name search in advance, or to simplify the process, you can do the name search as part of your application form.
|Order Preliminary Search||Order NUANS Name Search|
Step 4 - Information required to register your corporation.
To register a federal corporation in Canada, you will need to provide:
- Name and address of the business.
- Fresh NUANS report - less than 90 days old
- Description of the business activity.
- Name and address of each Director.
- Name and address of each Shareholder.
Please note that you need a minimum of 1 Director and Shareholder. One person can hold both positions.
Step 5 - Registered Corporate Address
Any Corporation located in Canada must have a registered address in the province where the head office is located. Many Corporations often use a separate corporate registered address to keep important government correspondence separate from other corporate correspondence. This is even more important if you have a home-based business, because this allows you to maintain an increased level of privacy. Corporate records are a matter of public record. Would you want strangers coming to your home? That is why we have a solution to keep your address private.
Business Development Centre provides all services related to a corporate registered address, including receiving mail and packages, notification and mail forwarding. We currently provide registered address service in Ontario and British Columbia.
We also provide a registered address for the receipt of government filings, legal papers and act as a local contact for government agencies.
We also forward such documents and correspondence to the corporation. The cost for Corporate Registered Address service is $249.00 for one year, plus applicable taxes and an account activation fee of $35.
You can order a Corporate Registered Address here or select this option on the Incorporation order form.
Step 6 - Filing Articles of Incorporation and Extra-Provincial Registration
Incorporation of the business is done by completing a document called Articles of Incorporation that is then delivered directly to the appropriate government department.
Once your application for Incorporation is approved, you will receive the official Articles of Incorporation.
Articles of Incorporation consists of a legal document that confirms registration of your corporation with the Federal government. Articles of Incorporation are valid in perpetuity.
Every federal corporation must also register in the province where it has a physical location or an office. For example: If you are planning to operate in Ontario, then you have to register with Ontario government. If you are planning to have offices in multiple provinces, you will be required to register in each province.
When you request Extra-Provincial Registration during the incorporation process, you can save as much as 50% off the registration costs. To qualify for this discount, simply select the appropriate item on the order form under the Extra-Provincial Registration.
Step 7 - Corporate Minute Book, Seal and Share Certificates
A corporate minute book and registers are very useful organizational tools that project a professional image of any new corporation. Revenue Canada, a lawyer or any other authority would request to view your minute book in case they have any issues with your corporation. For that reason alone, you should have your minute book ready and updated at all times.
View this quick video to learn more about the Corporate Minute Book.
The Legacy Kit features a high quality leatherette cover with gold detailing and is provided with an accompanying brass minute book plate that permanently adheres to the spine for easy identification. The functional 3-ring binder and slipcase format fits standard 12" shelving units. This quality register comes in a burgundy colour.
Both kits come with the award-winning mark-maker embosser, Standard 10 tab set, Corporate Information Summary, a Directors Register, List of Officers, Shareholders Register, Securities Registers and Transfer Registers for Shares, Warrants and Debts, five sheets of blank paper and one set of ten Share Certificates.
The contents of these packages are predetermined so as to simplify the ordering process.
The mark-maker seal is an award-winning embosser which seals your most important deals and records at the office or at home. It is ideal for identifying legal documents, notary seals publications and books. Features include: Lifetime Warranty, Brass Index Plate, and an Easy-to use Wide-Grip handle that makes a perfect impression each and every time. This corporate seal fits perfectly inside our Attaché Kit package.
Step 8 - Apply for GST/HST, Payroll, Import/Export and WSIB Accounts
- GST/HST - Any business that generates more than $30,000 in annual taxable sales has to register for GST/HST
- Payroll - Any business that has employees must register for a Payroll account
- Import/Export - If you are planning to trade with other countries, this account would be very helpful
- WSIB - This account is mandatory for most industries if you are going to have employees. This account is also mandatory if you operate a business in the construction industry in Ontario, even if you have no employees.
You can request all or any of the above tax accounts during the registration process. Simply check the appropriate check-box on the application form.
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Step 9 - Corporate Trade Names
What is a Trade Name?
A trade name is any name under which you do business other than the current legal name on your corporate registration record. If you would like to use any name other than your corporate name you must register a trade name.
These are some important basic principles:
- There is no limit to the number of trade names that may be registered by one corporation.
- Trade names are not "protected" from use by other companies through trade name registration. To protect your name you need to register a trademark.
- You must use your corporate name together with the trade name on all contracts and legal documents. (ABC Limited O/A Flowers for You)
- Trade names have to be ordered separately from the Incorporation process.
Step 10 - Incorporation Packages and fees
Business Development Centre provides complete incorporation services for Federal Corporations. The process requires approximately 5-7 business days. However, we do have a rush service available. For an additional fee we can have your Numbered corporation registered the same day we receive your order. There are some conditions, so ask us for complete details. Your documents can be delivered anywhere in Canada.
Professional Package - Named Federal Corporation (All Inclusive and Most Popular)>>
This is a full incorporation package for a Federal Corporation. This package includes Corporate Minute Book, Corporate Seal and Share Certificates. You should use this package if you are planning to start and run a solid business for a long time.
Our Fee$199.00 Preparation of the Articles of IncorporationIncluded Review of the ArticlesIncluded Filing of the ArticlesIncluded Nuans Name Search $59.95 Analysis of the Nuans Search ReportIncluded Articles of Incorporation $14.95 Corporate By-laws $14.95 Corporate Minute Book $85.00 Corporate Seal $54.00 Share Certificates $20.00 Government Filing Fee $200.00 Shipping & Handling $15.00 Taxes $60.17 Total - including government fees and taxes $723.02
Standard Package - Named Federal Corporation>>
This is a standard incorporation package for Federal Corporation. Please note that this package does not include corporate minute book and accessories. You should use this package if you are planning to use the corporation for a specific purpose and know how to manage corporate records.
Our Fee$199.00 Preparation of the Articles of IncorporationIncluded Review of the ArticlesIncluded Filing of the ArticlesIncluded Nuans Name Search$59.95 Analysis of the Nuans Search ReportIncluded Articles of Incorporation$14.95 Corporate By-laws$14.95 Government Filing Fee:$200.00 Shipping & Handling$15.00 Taxes$39.50 Total - including government fees and taxes$543.35
Basic Package - Named Federal Corporation>>
This is an absolutely minimum package required to register a Named Federal Corporation. You should use this package only if you are fully aware of the corporate rules and regulations.
Our Fee$149.00 Preparation of the Articles of IncorporationIncluded Filing of the ArticlesIncluded Articles of Incorporation $14.95 Nuans Name Search $59.95 Government Filing Fee: $200.00 Shipping & Handling $15.00 Taxes $31.06 Total - including government fees and taxes $469.96 This package is available online only.
Basic Package - Numbered Federal Corporation>>
This is an absolutely minimum package required to register a Numbered Federal Corporation. You should use this package only if you are fully aware of the corporate rules and regulations.
Our Fee$99.00 Preparation of the Articles of IncorporationIncluded Filing of the ArticlesIncluded Articles of Incorporation $14.95 Government Filing Fee: $200.00 Shipping & Handling $15.00 Taxes $16.76 Total - including government fees and taxes $345.71 This package is available online only.
Step 11 - What to expect after registration
Here is what you will get once your application is approved:
- You will receive an Official Registration Certificate issued by the Federal government.
- This certificate will entitle you to operate your Corporation in Canada. If you select Extra-Provincial registration, you would be able to operate in the province you selected. Otherwise, you would still have to register in each province where you will have a physical location or an office.
- If you apply for tax accounts (and you should), you will receive documentation directly from appropriate government departments that administer those accounts. We will also provide you with account numbers where applicable.
- When you select a Professional Package, we will provide a Corporate Minute Book with a Corporate Seal and Share Certificates.
Incorporate Your Business Now
Congratulations! You are now ready to incorporate your business. Simply select the appropriate link below to be redirected to the application form.
- Incorporate Your Business Federally in Canada
- Register a Trade Name for your Corporation in Ontario
- Order a Minute Book Kit
- Order Preliminary Name Search
- Order NUANS Report
You will be directed to our secure server for submitting your