Guideline
Guideline for Incorporation
Incorporating a business is an essential step in establishing a legally recognized entity, providing various benefits such as limited liability, tax advantages, and the ability to raise capital.
Choose a Business Name
- Select a unique name for your business that reflects its purpose and complies with legal requirements.
- Ensure the name is not already in use by another company. You can perform a name search through NUANS® or the appropriate government database.
Decide on a Business Structure
- Choose between different business structures such as a sole proprietorship, partnership, or corporation. Each has its advantages, with incorporation offering limited liability protection and potential tax benefits.
- Consider the size, scope, and future goals of your business to determine the best fit.
Register with the Government
- Incorporate your business with the relevant federal or provincial authority. You will need to submit necessary documents such as articles of incorporation and other forms depending on the jurisdiction.
- Obtain a Business Number (BN) from the Canada Revenue Agency (CRA) for tax purposes and to register for GST/HST if applicable.
Obtain Necessary Permits and Licenses
- Ensure that your business complies with local, provincial, and federal regulations. Certain industries may require specific permits or licenses.
- Research and apply for the required permits through the appropriate government bodies.
Draft Corporate Bylaws
- Corporate bylaws are essential for defining the internal rules of the business, including how the company will be governed, the duties of directors, and the procedure for meetings and decision-making.
- Consult with a legal professional to ensure compliance with laws and best practices.
Register for Taxes
- Apply for a Federal Business Number (BN) with the Canada Revenue Agency (CRA) for taxation purposes, payroll deductions, and corporate tax filings.
- Register for applicable taxes, such as Goods and Services Tax (GST), Harmonized Sales Tax (HST), or Quebec Sales Tax (QST) if your business exceeds the required thresholds for registration.
Set Up Corporate Records
- Maintain a corporate record book that includes the articles of incorporation, bylaws, shareholder information, minutes of meetings, and financial records.
- This will help with legal compliance and organizational transparency.
Consider Additional Legal Requirements
- Review other legal obligations, such as health and safety regulations, employment standards, and intellectual property protections.
- Seek professional advice if necessary to ensure full compliance with applicable laws.
Ongoing Maintenance
- Ensure your business remains in good standing by submitting annual filings, such as an annual return, and paying the required fees to maintain your incorporation status.
- Keep your business's information up to date, including changes to directors, business addresses, or corporate structure.