General Steps Involved To Set Up A Corporation In Canada

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Welcome to www.maroofhs.com
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General Steps Involved To Set Up A Corporation In
Canada
Are you looking to incorporate your business in
Canada but not sure how to get started? Here is a
brief overview of the general steps involved to
set up a corporation in Canada.
Make sure whether you need to incorporate your
business or not
Often people just want to incorporate their
business without considering the tax consequences
of the same decision on personal tax situation.
At Maroof HS CPA Professional Corporation, we
recommend to thoroughly analyze your situation
and then decide if you need to incorporate your
business. If not sure, feel free to consult an
accountant specialized in corporate personal
tax services. There are many other ways to
achieve liability protection and tax efficiency.
Choosing between federal incorporation and
provincial incorporation
Once you decide to incorporate your business in
Canada, the next step is to decide the
jurisdiction under which you can incorporate. In
Canada, businesses can be incorporated either at
the Federal level or provincial level.
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Always remember, there is no tax advantage of
having provincial corporation over Federal
corporation or other way around. So skip the
misinformation!
Name your corporation
Every incorporated business in Canada must have a
name called corporate name. For both federal and
Ontario provincial corporations you need NUANS
name reservation. Naming is governed by the
relevant business corporations acts. You can also
have a numbered corporation where a number is
assigned as a name.
Prepare your articles of incorporation
Articles of incorporation are the constitution of
your corporation. Any modification to articles
requires a subsequent filing of articles of
amendment. Before filing you need to carefully
draft your articles of incorporation, have it
reviewed by a lawyer or a chartered accountant in
Canada. There are critical clauses which must be
carefully thought about before inserting into
articles such as share structures and
restrictions.
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Complete extra-provincial registrations
In the event you are planning to have a presence
in more than one province territories, complete
extra-provincial registrations. If you do not
have permanent establishment in other provinces
you dont have to. However, certain provincial
laws do restrict the ability to practice
regulated professions in other provinces
sometimes. For example, professional corporations
are also required to register with other
provinces.
Register operating names
If you run multiple lines of businesses and found
it impractical to use the same corporate name for
all of them, you can register a business name
with the province and use that as an operating
name. Operating names (or doing business as, DBA)
are regulated at provincial levels. In Ontario, a
corporation can register as much operating names
as it wants. Business names or Operating names,
or DBAs, are most common for numbered
corporations as well.
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Prepare corporate minutes
Corporate minutes are a legal requirement for
corporations in Canada and must be prepared by a
lawyer or professional accountant. Most small
businesses do not prepare them but thats a clear
violation of law. A corporation must have
corporate minutes.
CRA Program Accounts
For new corporations, Canada Revenue Agency (CRA)
assigns income tax account automatically.
However, different program accounts such as
Payroll, GST/HST, or import/export must be
registered with CRA.
Other licenses compliance
Depending on the nature and circumstances of your
business, you require to fulfill other applicable
licensing requirements laws such as WSIB,
provincial and city licenses and permits. For
one-stop business corporation solutions, look no
further than Maroof HS CPA Professional
Corporation. Call us on 1(647)724-4308!
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Woodbridge, ON L4L 4V8 Phone [phone] Emai
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