Company Registration in Canada

Canada fosters a corporate-friendly climate suitable for all kinds of businesses globally. Presently, this country is poised at 23rd position in the  Ease of Doing Business index among 197 nations. Canada has far-reaching connectivity with three oceans, covering 550 ports and 18 airports. One of the major concerns businesses have while settling in this nation is the protection of intellectual property. Canada has done a commendable job in this regard by simplifying the procedure and minimizing the administrative burdens. Among the thriving sectors in Canada are tourism and manufacturing. Even the service sector is witnessing health growth. 

Why Register a Company in Canada?

• The operational cost is much cheaper than in the US, the UK, and Australia. 
• Canada serves as a prime business location for industries belonging to R&D, manufacturing, and digital media.
• Legitimacy of Canadian business bank accounts transcends national boundaries. 
• Forbes still considers Canada to be a prime destination for conducting business. 
• Technology center in Toronto is the 2nd largest in North America. 
• Canada is home to endless natural resources suitable for a wide range of industries.

Business Structures for Company Registration in Canada

The various business structures for company registration in Canada are

Private Corporations. 

Depending on jurisdiction, a private corporation can be set up with 1-2 stockholders. The minimum required capital is one dollar. 

Partnership

A partnership-based entity is helmed by two or more people seeking to serve a common business goal. In Canada, there is no territory-wise authority for governing such entities. Every jurisdiction has a sole authority for regulating General and limited partnerships. 

A partnership follows no formal legal framework but abides by the regulations cited in the partnership agreement, which defines how the partners shall address profit and liabilities.

Presently, three forms of partnerships exist in the Canadian system 

1. General Partnership:

Each member in this entity is subjected to unlimited liabilities, which can sometimes put personal assets at stake.
 

2. Limited Partnership:

A limited partnership has one general partner and any amount of limited partners. The general partner oversees the operations and addresses financial liabilities; meanwhile, limited partners have limited liability, which is equivalent to their capital contribution. 

3. Limited Liability Partnership 

Limited Liability Partnership registration exists only in Ontario and British Columbia. A single member and a partner can form such an entity. The appointment of local partners is no longer mandatory. The profit from LLPs is aptly dispensed among the members and reported to the concerned tax authority. 

Sole Proprietorship 

A sole proprietorship is perhaps the simplest type of business model suitable for small businesses. There is no need to appoint a director or other officials to run the business as the owner has the entire control. The profit or losses that arise from the business directly influence the owner. 

Branch Office

The Branch office is conducive to cross-border business without establishing a costly setup. BOs are more popular among businesses intending to increase their market reach or boost their operation. BOs have permission to carry the same line of work as their parent companies. 

Eligibility Criteria to Register a Company in Canada

The eligibility criteria for company registration in Canada are given below:

• Minimum Share Capital: To register a company in Canada, the minimum share capital of CAD1 is sufficient.
• Annual General Meeting: Directors of a Canadian company must arrange an annual general meeting for shareholders within 18 months of its establishment and annually thereafter within 15 months of the previous AGM, but no later than six months after the conclusion of the previous fiscal year.
• Registered Office Address: Every corporation in Canada must have a registered office address.
• Shareholders: A private corporation can be established with a minimum of one shareholder.
• Yearly Return: Corporations Canada requires yearly returns from all federal corporations each year.

Required Paperwork: Company registration in Canada

For the registration of a company in Canada, the submission of the following documents is required:

• Articles of Association
• Proof of the registered office address
• Documentation for the federal business number
• Details pertaining to the firm’s paid-up capital
• Name search documentation demonstrating efforts to reserve the business name
• Shareholder identity documentation translation and notarization
• Photocopy of Passport/Visa (for non-Canadian individuals)
• Company incorporation form

Process of Registering a Company in Canada

The section below elaborates on the process of registering a company in Canada: 

1. Choose either the Provincial or Federal Level

Choosing one of the options from the said ones is the first step in this process. At a provincial level, the company can perform commercial activities after securing approval. Likewise, the federal level allows companies to perform businesses under the same name across all territories. 

2. Secure the business number.

The second phase requires securing the business number from the concerned authority. It is a nine-digit code that helps federal and provincial authorities recognize the entity regardless of which industry it follows or where it is operating. 

3. Opt for an ideal business structure.

The next crucial step is to choose an ideal legal structure based on risk appetite, tax implications, business goals, and compliance threshold. 

4. Name reservation

The name reservation for the company is a mandatory step. Head over the NUANS or Canada’s corporate registry to serve this purpose. Ensure that the proposed name isn’t available in the database or registered earlier, or else legal complications may arise. 

5. Acquire the registered office address.

Any business cannot hold a legal status unless it has a registered office. Such offices serve as a bridge between a company and an authority for formal communication. This is the place where the company maintains official records. 

6. Arrange documents and file application

This step requires arranging mandatory paperwork (as cited in the above section) followed by application filing with the concerned authority. 

7. Register for GST/HST

This is the last step in the process that requires securing GST/HST approval from the concerned tax authority. Go for this step only if your company’s yearly turnover is equivalent to or higher than $30,000.

Why opt for Adviso to support Global Endevours?

Tackling cross-border regulations for establishing a brand-new venture is challenging, no which nation you choose. It is vital to have an apt grasp of establishment legalities, compliances, and tax implications while going global. At Adviso, we started to back our clients from day one of the request onboarding. With years of global experience under our belt, we ensure a seamless establishment of a new business, no matter the location or compliances. 

Choose us if you are;

• Unable to cope with the ever-evolving legalities in Canada,
• Uncomfortable addressing paperwork and application process, 
• Having trouble understanding territory-wise establishment norms.

We are looking forward to teaming up with you! Let’s begin a successful business journey.