You are in Canada and you have decided to start a business, congratulations! Now, several choices are available to you, but you decided that incorporating a stock company would be the right way forward. In this sense, the Government of Canada provides for the creation of a business by setting up a joint stock company in four steps and this is done on their online platform.

Corporation or Company?

A corporation is also referred to as a company.

How Do I Start an Incorporated Business in Canada?

This can be done in four steps. Of course, each step contains its own set of sub-steps, but the integration itself is quite simple.

Step 1: Choose the Legal Name of the Company:

The entrepreneur will be able to choose the legal name of the company in several ways: it can be a full name (composed of letters and symbols) or a numerical name.

The full name can be used across Canada when it has been approved by Corporations Canada. In order to choose this name, the person must choose the “custom incorporation” option by starting the online incorporation.

The numerical name, on the other hand, is generated by the government, since it is the government who assigns the combination of numbers followed by “Canada Inc.” Despite this, entrepreneurs can use a business name for their business activities.

Step 2: Create the Articles of Incorporation:

Entrepreneurs who wish to incorporate have two options are available:

• Make a basic incorporation; or
• Make a custom incorporation.

Basic incorporation is for a person who plans, following the creation of a business, to incorporate a small private business. This option is simpler and includes pre-determined articles of association, one or two classes of shares, a maximum of 10 directors, and a numerical name.

In return, custom incorporation is there to meet the specific needs of the person who is incorporating. This option allows you to customize the articles of incorporation. Upon incorporation, the person must indicate the legal name, the capital stock structure and any restrictions on the transfer of shares, the number of directors, as well as any restrictions for the business or commercial activities and any other provisions.

Articles of incorporation can be filed in English, French, or even in both languages.

Step 3: Choose the initial address of the head office and the first board of directors:

This is the address where the company will receive all documents and where it will keep the company's books. The person must also mention the full names and addresses of the persons who will sit on the board of directors of the joint stock company in accordance with the requirements. It must also indicate for each director whether he or she is a Canadian resident.

Step 4: How much does it cost to incorporate?

A fee of $200 must be paid when a corporation is incorporated through the online platform. In addition, there is a quick alternative for an additional cost of $100 that allows you to get a delay of only four business hours for online incorporation applications.

To conclude, despite its apparent complexity, incorporation offers several advantages, including the possibility of limiting shareholder liability and facilitating business financing.

Finally, it should not be forgotten that incorporation imposes certain obligations on the company, such as keeping records and submitting annual reports. It is therefore recommended to be accompanied by a legal advisor or an accountant to navigate this process.

With all this information, incorporating your business will be a simple, stress-free task.