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Cost CalculatorConnect with Licensebox Experts for Company Incorporation in Canada!
Licensebox assists at every stage of company registration in Canada. From preparing your documents to obtaining all the necessary approvals, we’ll ensure a smooth and hassle-free experience for company incorporation.
Process of Company Registration in Canada
Company Incorporation in Canada
Many people from different parts of the world set up businesses in Canada. Canada is one of the largest countries in the world, and its government actively supports entrepreneurs from around the world in starting their business journey in Canada. The country has a stable economy, high living standards, ease of doing business, and a robust banking system. If you plan to incorporate your company in Canada, now’s the perfect time. The country offers low corporate tax rates and subsidies to the eligible businesses.
Get in touch with Licensebox consultants to start your entrepreneurial journey in Canada! We take the responsibility to ensure that the process of your company registration in Canada will be as smooth as possible.
Requirements for Business Setup in Canada
The following is the Eligibility Criteria for Canada Company Registration:
- The owner and director must be at least 18 years of age.
- The owner and directors must be of sound mind.
- The owner must not have the status of being bankrupt.
- There is no capital requirement to start a company in Canada.
- A minimum of one shareholder is required.
- The company must have a local director and a local company secretary.
- A local address of the company is also a requirement.
- The company’s business number must be obtained from the concerned authority before commencing business.
The following list of documents is required for company formation in Canada:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Lease Agreement of the chosen Office space
- Title Agreement of the Registered Office space
- For Foreign Shareholders, Proof of Residence
- The number for Federal Business
- Documents regarding the company’s paid-up capital
- Documents establishing the business’s shareholder identity (translated and notarized)
- A photocopy of the passport and visa
- Company incorporation form
- Fit and Proper Criteria of the Appointed Managers
- Details of Board of Directors
- Board resolution, if required
- Any other documents asked by the Canadian authorities.
Canada business setup process involves several crucial steps. Each and every step of this process must be completed for successful company incorporation in Canada. You can seek Licensebox for help if required! All the crucial steps for company formation in Canada are discussed below:
Step 1: Choose the Business Model/Company Type
In Canada, there are three basic/common business structures: sole proprietorship, partnership, and corporation. A sole proprietorship is ideal for a small business with one owner. If you want to open a small grocery store, parlor, or bakery, you can go for it. However, all the debts and profits will be your personal responsibility.
A partnership is ideal if you want to start a business in Canada with more than one owner. It may feel similar to sole proprietorship; the only difference is that there’ll be a partner in case of a partnership firm. Just like sole proprietorship, the debts and profits will be the responsibility of owners but they’ll be split between all the owners. Sole proprietorship and partnership are not separate legal entities from their owners.
If you want your business to have its legal entity, then you can go for a corporation. A corporation is a separate legal entity from its owners and shareholders. The paperwork for corporation registration is more than that for partnership and sole proprietorship. However, the advantage of a corporation over the other two business structures is that it protects individuals from responsibility for debts and liabilities of the company. A corporation must be incorporated federally in Canada. It is required to pay corporate tax as an entity and also requires at least one director.
Step 2: Decide your Business Name
Deciding the name of your business is an important step in the company formation process in Canada. While choosing a name for your business, make sure that it reflects the services or products you’re planning to offer so that the customers won’t get confused. It is suggested to pick a name that is catchy, easy to pronounce and easy to remember. Make sure the company’s name is unique and distinguishable from other existing companies to avoid legal issues and confusion.
Step 3: Create the Articles of Incorporation
You must create the articles of incorporation to establish the structure of your corporation. You can apply for change later after incorporation if a change in structure is required. All the incorporators must sign these articles. In these articles, you must state the proposed corporation’s name, the corporation’s territory/province in Canada, business activities, share subscription details and any restrictions on share transfers and other crucial information to determine the business structure.
Step 4: Decide how you want to incorporate the business
In this step, you must decide whether to incorporate the business federally or provincially. Federal provinces provide businesses under the same name in all the provinces. This is important if you want to expand your business in other provinces in future, but the Canada company incorporation cost is higher in this case. Provincial incorporation of a company in Canada offers corporate name protection within a specified province. The provincial incorporation is done through the provincial registrar. For an easy Canada business registry, connect with Licensebox.
Step 5: Open a registered office and business bank account
You must open a registered office where business activities and meetings can be held. Additionally, you must open a corporate bank account to receive and send payments.
Company Types in Canada
There are various types of companies in Canada. They are as follows:
Sole Proprietorship
In a sole proprietorship, the sole proprietor is the only and one business owner. He is fully responsible for all aspects of the business, including finances, liabilities and decision-making.
Partnership
In a partnership, two or more owners known as partners are responsible for running the business. The profits and losses of the business are split between these partners.
Corporation
A corporation is a separate legal entity from its owners. It offers limited liability to its owners as their personal assets are protected against the business debt and liabilities.
Benefits of Register a Business in Canada
There are several benefits of setting up a business in Canada. We have mentioned some of them below.
- The Canadian government provides various grants and incentives to boost eligible businesses established in Canada.
- Many people choose to establish businesses in Canada as it offers lower corporate tax rates compared to the native countries of these people.
- Canada has a stable economy and provides ease of doing business. It is ranked amongst the top ten in Forbes’s Best Countries for Business list. Due to a stable economy, there are low risks of business shutdown.
- Finding skilled workers is pretty easy in Canada. So, it’ll be easy for you to hire skilled workers for your company.
Connect with Licensebox for a Smooth Canada Company Incorporation Process!
Establishing a company in a country you’re not a native of can be pretty complicated, especially if you’re not entirely familiar with the rules and regulations. However, by choosing Licensebox as a reliable partner in your company incorporation process, you can ensure that your company gets incorporated in Canada in a smooth and hassle-free manner.
We’ll help you collect and organize all the documents necessary for company formation. We’ll also reserve your company’s chosen name with the relevant Canadian authority. Apart from that, we will file the certificate application for company registration on your behalf.
Our seasoned consultants at Licensebox will work tirelessly to ensure that your company is incorporated in Canada smoothly. If you have decided to start a company in Canada, allow us to help you so we can make your dream come true!
Our Clients
Testimonials
Malavika Sen
Kolkata, India"I approached Licensebox to help me with trademark registration in Canada, and I am beyond satisfied with their service. As an entrepreneur based in India, I was initially overwhelmed by the complicatedness of international trademark laws. However, the team at Licensebox made the entire process straightforward and stress-free for me."
Adya Sharma
New Delhi, India"Seeking assistance from Licensebox for my company’s registration in Singapore has been an absolute gamechanger. I want to thank everyone at Licensebox for helping me in incorporating my company in Singapore. If anyone wants to set up a company in Singapore, I wholeheartedly recommend Licensebox - they’re the best in business!"
Priyanka Sharma,
Bangalore, Karnataka"I contacted Licensebox for help with trademark registration in the UK. They helped me gather all the required documents for trademark registration and also in filing the application with the concerned authority. If you’re looking for assistance in trademark registration, I recommend you to approach Licensebox. You won’t be disappointed."
Anil Rajput
Pune, Maharashtra"I consulted with Licensebox for company incorporation in UAE, and I couldn’t be happier with the service I received. I never thought it’d be so easy to get my company incorporated in a country with rules and regulations I was unfamiliar with but Licensebox made it seem like a cakewalk"
FAQs on Company Registration in Canada
A. Sole proprietorship, partnership and corporation are the most common types of business structures in Canada.
A. Anyone aged 18 or older can form a company under Canada Business Corporations Act, as long as they are not undischarged bankrupt and are of sound mind.
A. No, only an individual who is 18 or above can be a director in a Canadian corporation.
A. No, you do not need a PR card or citizenship to register your company in Canada. However, you are required to have a valid work permit.
A. If you want to start a business in Ontario, you should get it registered as doing will provide you legal protection in case someone else wants to use the same name.
