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How to open a Company in Canada?

  • December 26, 2022
  • Registrationwala
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If you are aspiring to register a Business in Canada, and don’t know where to start, then you can start with us. We, the Registrationwalas, have clearly laid down the detailed procedure for Company Registration in Canada. If you wish to register a Business in Canada with the Canada Company Registry, then you can connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the online Canada Business registration procedure in no time. Meanwhile, let us detail the requisite Business Registration procedure in Canada.

 

Registration Procedure:

  • Select the relevant jurisdiction to set up the Business in
  • Reserve the chosen name for the Company
  • Document the requisite information for Incorporation
  • Upload and submit the Company Registration Documents
  • Construct and Run the Board of Directors for the newly Incorporated Entity
  • Maintain the Company Incorporation Documents at the Official facility
  • Tasks for the First Meeting and Legal Obligations of the Company in Canada
  • Opening of a Bank Account for the new Incorporation

 

Registration Procedure in detail…

Let us see each step in detail one by one.

Select the relevant Canadian jurisdiction to set up the Business in

The first step towards Company registration is selecting the appropriate jurisdiction in Canada for the required business establishment. This move will decide the place of activity for the applicant's Business. The applicant has the option to choose from any of the 13 provincial jurisdictions of the Canadian Federal Jurisdiction. Entrepreneurs usually choose their home province for the comfort of conducting smoother business operations. The Business owners also have the option to choose the Federal-Level Business registration in which their supposed jurisdiction can cater to the entire Canadian Market.

 

Reserve the Chosen Name for the Company

After selecting the jurisdiction for Incorporation, the applicant must choose an appropriate trade name for its Corporation. Different provinces in Canada employ different guidelines for the Business nomenclature in their jurisdiction.

Company Naming Regulations

But, for your ease, we have enlisted some of the common guidelines applicable to all the Canadian provinces for the name selection of the Corporation:

  • The name must not be in contravention of the Provincial Law
  • The name must not be similar to an existing Corporate name/trademark.
  • The name must not deceive the public
  • The name can be in English, French, or a combined phrase or a combined English and French form
  • The name must have a distinct, descriptive element
  • The name must end with a suffix indicating the adopted legal structure of the Corporation

 

Checking the Chosen Name Availability

Every incorporation applicant must check the availability of the chosen name before its submission to the Authority. He must run the chosen name to check its availability in the following systems:

  • Newly Upgraded Automated Name Search system NUANS
  • System of Centre Informatique du Registre des Enterprises du Quebec, CIDREQ

 

Document the requisite information for Incorporation

For Smaller Business Models:

For subscription to the Private business model in Canada, smaller in size and limited in operations, the Company Incorporation applicant must prepare the following documents:

  • Articles of Incorporation: It must be amended from time to time as per the Company Objects
  • The applicant must maintain a maximum of two to three share classes
  • The applicant must appoint and maintain a maximum of ten directors in the firm
  • He must also choose and apply for the trade name for the Corporation

For Bigger Business Models:

If the applicant Business wishes to register itself as a big company, then it must subscribe to the CI (Custom Incorporation) plan, which includes:

  • Name of the proposed Business
  • Share Structure of the proposed Business
  • Decided Limits on share transfer among the proposed Business
  • Number of Directors in the proposed Business
  • Finally, upload and submit the registration documents

Additional Documents

The applicant, after drafting the registration documents, must submit the supporting documents, such as:

  • Company’s Name Search Report
  • Company License processing fee

The applicant must submit the documents to the Appropriate Authority before its Incorporation in Canada.

 

Construct and Run the Board of Directors for the newly Incorporated Entity

After submitting the requisite documents, every incorporation applicant must form the Company’s Board of Directors (BOD). For Board formation, the applicant must ensure that its constituent members fulfill the required eligibility to become a company director. The Board must also maintain the member directors' names along with their respective addresses and residency status at the time of Incorporation.

 

Maintain the Company Incorporation Documents at the Official facility

The Canadian Authority instructs every new Incorporation to maintain a record of the received incorporation documents at their facilities.

Incorporation Documents:

The incorporation documents are listed below:

  • Articles of Association
  • Corporate Byelaws
  • Minutes of the Meetings
  • Company’s Shareholder's Resolutions
  • Board of Directors' resolutions
  • Application forms filed with the Canadian Authorities
  • Shareholding Agreement of the Company
  • Share Transfer Register
  • Securities Register

The Authority also instructs the Incorporation to purchase a corporate seal. This seal must emboss the Corporation's name on its official documents. Many provinces in Canada have mandated newer incorporations to have a corporate seal under their reserved name.

 

Tasks for the First Meeting and Legal Obligations of the Company in Canada

In Canada, it is essential to determine the organizational structure of a Corporation. The organization of an incorporated entity is accomplished by arranging a general meeting between shareholders and directors. The Incorporation can also accomplish this meet-cute through a written resolution signed by the Company’s directors as well as shareholders.

Tasks for the First Organizational Meeting

The first organizational meeting of the Company is set up to accomplish the following tasks:

  • Obtain the bye-laws Approval
  • Issue shares to the Company’s shareholders
  • Elect the first directors of the Company
  • Appoint the Officers as representatives of the Corporation
  • Draft the Shareholding Agreement
  • Other resolutions, as required
  • Obtain the required business Licenses

Legal Obligations of an Incorporation

The new Incorporation must also adhere to the legal obligations as prescribed by the Authority. This includes applying and obtaining the registration of the following:

  • Federal Business Number
  • Employer Health Tax and Worker's compensation as per the Provincial guidelines
  • Sales Tax Account in the Province
  • Non-Corporate Business Name
  • Other required Provincial Licenses
  • Required Municipal licenses

 

After completing the incorporation procedure, the Company must open a bank account under its trade name. It must also provide the bank with a copy of the Articles of Association along with the digital signatures of their authorized officers. Mind you, the Banks can also ask for the Company's by-laws and resolutions along with the AoA.

The incorporation procedure is finished by doing away with the above-mentioned steps. Thereafter, the Company can begin with its business operations. Also, all registered entities must pay their required corporate taxes. For more details on the company registration procedure in Canada, connect with the Incorporation Experts at Registrationwala.

 


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