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Types of Corporations for Company Registration in Canada

  • February 11, 2023
  • Registrationwala
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In Canada, a Corporation is similar to a Company as in other nations. A Canadian Corporation, like a registered company in India, limits the liability of the shareholders toward its various debts and obligations. It can raise capital from Investors or shareholders for business growth. The Canadian Corporate Authority has optimized the tax payment for registered Corporations in

Canada. However, Company Registration in Canada involves hefty paperwork with a lot of money. Now let us look into the type of eligible corporate structures available in Canada for Business Registration.

 

Types of Corporate Company Registrations in Canada

The Corporate Legislature sub-categorizes the Corporations in Canada into the following types:

  • Canadian Controlled Private Corporation or CCPC
  • Other Private Corporations or OPCs
  • Public Corporations or PCs
  • Corporation Controlled by Public Corporation
  • Other Corporations

Let us look at them one by one in detail.

Canadian Controlled Private Corporation

Every eligible applicant for Canadian Controlled Private Corporation must fulfill the following pre-conditions at the end of its financial year:

  • It must be a resident corporation of Canada
  • It must be either of the following:
    • Incorporation of Canada
    • Resident in Canada

Both from June 18, 1971, to the financial year’s end.

  • CCPC is a private corporation. It is not authorized to be under the direct or indirect control of Public Corporations. The only exception to this rule is a Venture Capital Corporation, as defined in the Income Tax Regulations.
  • A registered CCPC must not be under the control of Non-Resident Canadian(s). Also, it cannot be under the direct control of a Canadian Resident Corporation that lists its shares on the Stock Exchange of foreign nations.
  • If a non-resident person owns all the shares of the Corporation by any of the following:
    • Public Corporations, except Venture Capital Corporations
    • Corporation with shares listed on Stock Exchange owned by one person
    • Person with non-sufficient shares to control the Corporation
  • The CCPC must not list its shares on a designated stock exchange.

 

Other Private Corporation

You can register a corporation in Canada as an Other Private Corporation if it meets the following criteria at the end of its financial year:

  • It is a non-public resident Corporation of Canada
  • It is not controlled by Federal Crown Corporation(s), as defined in Regulations 7100 of Income Tax Regulations
  • It must not be under the control of any public corporation(s), the exception being Venture Capital Corporation as defined under Income Tax Regulation 6700.

It must not be under the control of any of the aforementioned corporations.

 

Public Corporation

You can register a Business in Canada as a Public Corporation if it satisfies the following requirements at the end of its financial year:

  • A Public Corporation must enlist its shares class on a Canadian Stock Exchange
  • It must be an elected Public Entity, or the Canadian Minister of National Revenue has designated it as a Public Corporation
  • It must comply with the Income Tax Regulations on the following subjects:
    • Shareholders count
    • Public Share Trading
    • Dispersal of the ownership of the shares
    • Size of the envisioned Corporation

 

Corporation Controlled by Public Corporation

A Corporation Controlled by a Public Corporation or a CCPC is a subsidiary of a Canadian Public Corporation in Canada. Such Public Corporations do not qualify as dedicated Public Corporations when completing the Corporation ITR filings.

 

Other Corporation

If a corporate entity does not fit into the criteria of any of the above-mentioned corporations, then it is termed an Other Corporation. You can term Life Insurers and Crown Corporations as Other Corporations of Canada.

To learn further about the eligible business structures for incorporation in Canada, connect with the Incorporation Experts at Registrationwala.


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