6 Important Steps After Incorporation: A Step-by-Step Guide

by | Jan 1, 2023

Congratulations! You’ve incorporated your business! Now, there are some essential things to do to keep your company up-to-date and compliant. So, in this article, we will discuss the 6 Important steps after Incorporation.

Moreover, incorporating your company is crucial for building a successful business. It’s true that when you incorporate, your shares will get legal status. This gives investors much more security when investing in your company. 

Thus, this article will provide essential guidelines for the recently incorporated company. Also, you can contact Yogi & Associates for seeking help with incorporating your company.

When you incorporate your company, you are halfway done. But after incorporating, there is still a lot to do that you should not miss. So, the following are 6 essential steps after Incorporation:

1. Register for a Business Number (BN)

This is the first thing among six crucial steps after Incorporation. Getting your CRA Business Number will depend on your incorporation type. You can get your CRA business number online by visiting Business Registration Online. You can also get the business number by phone call to CRA. Dial 1-800-959-5525.

2. Create a Bank Account For Your Company

Once you incorporate, opening a bank account becomes essential for your corporation. Because it is necessary to keep your personal and corporate finances separate. Moreover, you can take advantage of our bookkeeping services in Mississauga. We will help you to learn more in-depth information on creating a bank account for your company. 

Remember!

Before visiting the bank, ensure you have your Articles of Incorporation. The bank might request to see the incorporation certificate. 

3. Organize a Meeting for Tasks Management

The corporation’s management is one of the most important steps after Incorporation. The incorporation owner or a director holds an “administrative meeting” for this reason. But each director mentioned in Form 2 – Initial Registered Office Address and First Board of Directors must get notice of this meeting at least five days beforehand. The meeting’s date, time, and location must all be included in the notification. In the administrative meeting, the directors can thus:

  • Establish the bylaws
  • Authorize the issuance of shares and other securities
  • Select the officials
  • Appoint an interim auditor to run the business until the first shareholder meeting

Create the by-laws

By-laws are policies that control how a corporation conducts its daily business. For instance, you might desire to establish some corporate policies. And these policies may relate to the Canada Business Corporations Act (CBCA). Or, you could change some of the CBCA’s rules if the Act permits. So, some by-laws may be able to help you with this. 

Advantages of by-laws:

A corporation gains from bylaws in a variety of ways, for instance:

  • By-laws help you to decide when your company’s fiscal year ends.
  • You can manage banking transactions through by-laws.
  • You can analyze officers’ selections, credentials, and responsibilities using by-laws.
  • By-laws govern the wages of directors and officers.
  • Through by-laws, you can create the director and officer salaries and payments.
  • These laws assist in creating schedules and holding director and shareholder meetings.
  • By-laws help creates the least number of attendees required for directors’ and shareholders’ meetings. These laws help to create a quorum (a group of people that makes business decisions).

Deliver shares and other securities

This is one of the first things your corporation has to do after being incorporated. When a corporation issues shares in a person’s name, that person becomes a shareholder. By majority vote, directors may decide to issue shares. You should record the decision of the directors to issue shares in the minute books of the Corporation.

Note!

The payment for a share in a form that the board chooses represents a person’s investment in a corporation. The corporation cannot issue a share until it has been paid. You can also exchange shares in the form of money or services. And other assets provided to the corporation.

Choose the officers

The officers handle the everyday business of the corporation. Moreover, the directors choose the officers. Along with the directors, the officers will establish the corporation’s management. The directors may assign officers to any position they see fit. President, secretary, or any other role, for instance.

4. Schedule the Initial Shareholders’ Meeting

The corporation’s first shareholders’ meeting occurs within 18 months after its incorporation date. The directors of your company organize the first shareholders’ meeting. Additionally, this gathering follows the directors’ initial organizational meeting. Moreover, in this meeting, the shareholders can make the following decisions:

  • Elect directors.
  • Verify, alter, or reject the bylaws that the directors have made.
  • Choose an auditor. This auditor may be the same person or a different person the directors chose.

5. Consider Obtaining a GST/HST Number

You should know whether you should register for a GST/HST number. You must apply for a GST/HST number if your estimated yearly gross revenue exceeds $30,000. So you can charge sales tax to your clients. But, you don’t need to register for GST/HST number and collect sales tax if your revenue falls below the $30,000 mark.

Read an interesting article by Yogi & Associates: Register for GST/HST Account: When and How? A complete 2022 Guide.

6. Continue to Maintain the Corporate Maintenance

It is the sixth and final, but one of the most crucial steps after Incorporation. Following Incorporation, your company should keep certain records and documentation. You should keep your corporation up to date and in line with the law. Thus, each business should maintain the following three informational items updated:

Minute book and share records

Once you establish your firm, keeping your business records organized is important. You might make use of a minute book for this purpose. The Minute Book shows the Key business documents. These records include annual reports, incorporation articles, by-laws, and directors’ and shareholders’ resolutions. It also shows minutes of shareholder and director meetings.

Company Updates

You must submit paperwork to the government whenever your company’s information changes. For instance, you must submit paperwork to the government to add a new director. Or for changing your address. Additionally, prepare corporate resolutions that may accept the company’s changes.

“Incredible things in the business world are never made by a single person but by a team.” -Steve Jobs

Annual Return and Resolutions

After you incorporate, your business must submit a yearly return to the government. Additionally, you will need to prepare annual resolutions for directors and shareholders. The whole procedure requires paperwork to keep your company running well. The government can even dissolve your Corporation if you don’t submit the yearly return.

The Bottom Line!

We hope you now have enough knowledge about the six essential steps after Incorporation. You, as a Canadian entrepreneur, should consider incorporating your business. Because it will protect your business from personal liability. So you need to know about these six important steps after Incorporation. 

You can get business incorporation services from Yogi & Associates for further assistance. We will help you with each step required for incorporating your company. So, contact us today to get our bookkeeping services in Mississauga and Brampton.

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