Three Things to Consider for Setting up Your Business in Canada:

1. Before registering your business, you must first decide on the type of business you want to start or what should be the name of your business.
2. You have to select the type of legal structure for your company, whether its sole proprietorship, partnership, or corporation. Each form of business has its own set of benefits and drawbacks, so do some study to discover the most excellent fit for your needs.
3. You also have to get register for a business number (BN)

Five Steps to Register For a Sole Proprietorship:

1. Select a Name for your Business:

Unless it's a sole proprietorship, almost all firms in Canada must submit a business name registration. You can register your company's name to the Ministry of Government and Consumer Services Central Production and Verification Services Branch. Before registering your business name, take your time to choose a name that sounds interesting, looks good, and attracts plenty of customers to your business. You can select a name for a company by searching the Canadian corporate names and trademarks database. This database can inform you if a particular term is available. This way, you can get a proper name for your business.

2. Do Research On Your Chosen Name:

You have to make sure that your business name is appropriate and is not similar to any other company's name. For that, you can review:

• The Government of Canada runs the NUANS corporate name search website. NUANS (New Upgraded Automated Name Search) is a corporate and company name registry that operates across Canada. Using NUANS, you can find corporations, business names, and trademarks similar to the name you've typed in. The current charge is $13.80 per report.
• Integrated Business Services Application by Service Ontario. This search is limited to Ontario and costs between $8 and $26 for each report.

3. Register Your Business Name:

To register your business name, you'll need to provide the following information:

• An overview of the business activity that will be carried out
• The business's name and address
• Your first and last name, as well as your home address. A post office box will not qualify as an address where legal papers can be served. If you're registering the name of a partnership with ten or fewer partners, you'll need to submit each partner's name and address.
• You'll need a valid email address if you're registering via email.

4. Register for Additional Licenses or Certificates to Run Your Business Legally:

You would need a business license which will depend on what type of business you are running. You must also follow provincial and federal rules when operating your business, which may require you to register for a workers' insurance plan or collect GST/HST. Make sure you're aware of all the different registrations your company needs.

If you want to learn about collecting GST/HST, you can look into the article we posted on our website by clicking How to start charging and collecting GST/HST

5. Renewing your Business Name:

It is the responsibility of a business owner to renew his business name after every five years. The Canadian Government doesn't remind you; you have to keep it in your mind. However, if a business name or management changes, the business name must be re-registered, and the registration cost must be paid.

Four Steps to Register For Partnership:

1. Choose a Name for Partnership:

After mutual discussion, the partners must choose a name that can be registered according to the sort of partnership they will form.

2. Partnership Registration With Your State

Every partnership must be registered by going to the Secretary of State's website and looking under the business or company's area. This is where a business is registered as a partnership. The majority of states allow you to do this registration online.

3. Acquiring And Employer Identification Number (EIN):

After deciding your company's name, you must get EIN as all firms need an EIN. You can get your EIN by IRS, and they don't charge for giving you EIN.

4. Partnership Agreement:

The foundation of the entire business between the partners is laid out in a partnership agreement. It contains rights, obligations, rules, the scope of activity, and other vital articles that constitute a solid foundation on which a company can operate. The Partnerships Act defines the rules of partnerships with others. Any lawyer specializing in contract drafting should be hired to design a well-structured partnership agreement.

Five Steps to Register For a Corporation:

1. Choose a business name:

This step is the same as sole proprietorship or partnership. You may not use words that suggest the business is connected with the Crown, Canadian government, a state, or municipality without the written agreement of the relevant authority.

2. A Name Search:

A Searcher of Records conducts this search to ensure that no one else is operating a business or has registered a trademark with the same or similar name as the one picked. In addition, a current NUANS Report must be submitted with the incorporation application.

3. Complete the Articles of Incorporation—Form 1 under the Business Corporations Act:

You can select one of the following service providers to complete the articles of incorporation online:

• Cyberbahn, a division of Thomson Reuters Canada Limited
• OnCorp Direct Inc.
• ESC Corporate Services Ltd.

You can buy business incorporation forms from lawyers, legal stationery stores, or name search companies to file the traditional standard with paper forms.

4. A Cover Letter:

This is used to identify the name of the company and the associated staff, and the company's return address and phone number. You should also complete the cover letter online if you are enrolling electronically.

5. Send In Your Application.

The completed articles of incorporation, the cover letter, a current NUANS name search, the NUANS reservation reference number, the NUANS date, and the payment must all be included in your application.

The registration fee is $360 if you file in person or by mail at the Central Production and Verification Services Branch or a Land Registry Office. If you're submitting electronically, there's a statutory fee of $300 plus the amount charged by the principal service provider.

Bottom Line!

Everything, from the administrative expenditures of setting up and maintaining the business to the tax planning stage, is determined by the type of business you choose to operate in. It's the most crucial decision since it lays the groundwork for everything else. This should be selected even before the company's name is picked. We know this whole process is a bit confusing for you. It takes a lot of time and effort to understand the entire process, and it will take a lot of energy for you to start a business on your own without taking the help. So don't hesitate to contact Yogi & Associates. We have professionals here to assist you with every step of starting your new business and making it possible to run it effectively.