Are you planning to incorporate your business in Canada? Never fear if you don’t know how to incorporate your business in Canada. Because this guide is for you since a corporation is its legal entity; so, it offers many benefits—for example, lower tax rates and limited liability.
To help you better understand the whole process of incorporating a business, Yogi & Associates have created this simple guide. Here, we will discuss five important steps to incorporate your business in Canada.
Because we provide the best service for business incorporation in Mississauga, we want to make sure your incorporation experience is as smooth as possible from start to finish.
1. Why is it Essential to Incorporate your Business?
The choice to incorporate a business is a significant one that requires serious thought and planning. There are several things to consider, such as the tax repercussions and what will happen if you decide not to incorporate them.
You can defend yourself and your assets in the event of a lawsuit by choosing to incorporate your business. A single lawsuit against your company could spell the end for your not-for-profit venture.
2. Decide Whether to Incorporate Federally or Provincially:
| Parameters | Federal Incorporation | Provincial Incorporation |
| 1. Permission to Conduct Business |
Permits you to conduct business across the country. | Allows to conduct your business only in a single province |
| 2. Business Name Protection | It provides business name protection all across Canada | Provides business name protection only in the province where the business is situated. |
| 3. Recognition | Gets recognition on a national level | Gets recognition only within the province where business is conducted |
| 4. Cost | Less expensive to initiate and renew incorporation | More expensive to incorporate provincially |
| 5. Directory Residency Requirements | Federal corporations demand that at least 25% of the directors of a corporation must be resident Canadians | No directory residency requirements |
3. Select a Corporate Name:
A corporate name is the legal name of your corporation. Moreover, this name represents your corporation. So, you must use it in all contracts and invoices. Of course, you can always incorporate a numbered company. Such as 12345678 Canada Inc.
Make sure your business name must fulfill three legal requirements:
1. A distinctive element
2. A descriptive element
3. A legal ending
[Distinctive] + [Descriptive] + [Legal Ending]
For instance: Levi Classy Sneakers Inc.
Important!
Your corporate name is different from a trademark or domain name. So do not assume that owning a domain means it can be your corporate name.
Read another interesting article by Yogi & Associates: 10 Easy Steps to Start your Business in Canada.
4. Do NAUNS Name Search for Corporate Name
It doesn’t matter where you incorporate your business in Canada. You will need to have a NAUNS name search to ensure the suitability of your corporate name. NUANS stands for “New Upgraded Automated Name Search.” It is Canada’s official database of incorporated and trademarked businesses.
So, you can search for different names via the internet. And prepare a NUANS report. This report shows you a listing of trademarked or incorporated companies that have similar names to the company that you are starting.
If the search results get approved, and your name is accepted, it is then reserved for a couple of days. During this time, you must complete the incorporation process for your business. Or restart the procedure again.
“What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.” -Dave Thomas
5. Prepare Your Documents:
To incorporate your business, you need to prepare the following documents:
1. The Articles of Incorporation to control the conduct of the company members.
2. The location of the two required offices for your corporation; the registered office and the records office.
3. The Memorandum will display the rules for the management of the company.
4. Information on whether you want the name of your business to be federal or provincial.
5. Whether you want to choose a number or name for your corporation.
6. List the three or more names you created for your business.
7. If you are a business owner, give your first and last name.
8. Describe your company’s main activities.
9. Phone number.
10. Email address.
11. Business telephone.
12. Details if you serve as a corporation’s director.
13. Information if you live in Canada.
6. Organize Your Documents and Apply for Incorporation:
You can incorporate your business online by using the websites of corporations Canada and the provincial registries. You can also submit your application for incorporation by mailing the forms and fees to the appropriate registrar. Then you are ready to run a corporate business.
Remember!
Incorporating federally, you must also prepare a Notice of Directors. When filing provincially, check the document requirements for your specific province before proceeding to the next step.
7. Steps to Incorporate your Business:
Incorporating your business in Canada is an easy process if you do it correctly.
1. Choose a business name, then register it online using the Electronic Filing Option Chart with the appropriate state or provincial office.
2. To incorporate your business, submit Form 1 or the Articles of Incorporation to the Ontario government. Either submit it to Land Registry or file it online through Service Ontario.
Note:
Articles of incorporation filing fees are $300. Cyberbahn, OnCorp Direct Inc., or ESC Corporate Services Ltd. are the companies offering the extra charges. The incorporation process is guided by these suppliers’ digital portal systems.
Need Support With Incorporating Your Business?
Incorporating your business in Canada is a great way to establish your company. And make sure that it stays protected. The good news is that you can easily incorporate your business in Canada. It can be a simple process with clear-cut guidelines for your business.
Therefore, you can count on Yogi & Associates for friendly, professional advice about incorporating your business in Canada. We take the time to know you and your business and always have a thorough understanding of the tax laws.
Feel free to contact us. And take advantage of our business incorporation services in Mississauga, Brampton and its surrounding areas.
