Company incorporation in Canada
COMPANY INCORPORATION IN CANADA
Before the incorporation of a company in Canada, firstly identify the requirement of the client to select which type of company, they want to be formed in Canada.
There are 4 types of company in Canada:-
- Sole Proprietorship
- Partnership Firm
- Corporation Firm
- Co-operative Firm
1. Sole Proprietorship
- In this firm, the individual is personally liable for the activities of the company.
- It is the most straight forward way to set up a business viz. startup cost, less paperwork, more direct control, minimum working capital needed.
- In this firm, unlimited personal liability as there is no separation between the business and the owner.
- The reporting of tax is simple.
2. Partnership Firm
- Partnership firm means the agreement between two or more persons will agree on the responsibilities and rights of each partner for shared risk, shared management, and shared profit.
- There are two types of partnership exist in Ontario:-
- General Partnership where each partner can manage the business and also responsible for the debts and obligation of the partnership.
- Limited Partnership where each partner will agree on their responsibilities and rights to the extent of profit share and liability might vary, but all these details are mentioned in the agreement.
3. Corporation Firm
- A corporation is a separate legal entity from its proprietors.
- Stockholders/shareholders are not responsible for the company’s obligations or debts, as they only interest in relation to the value of their investments.
- Corporations shall also have to register for VAT in Canada.
There are two types of corporations in Ontario
- Private corporation
- Public corporation
A private corporation in Canada can be registered by one or more individuals, the majority of the directors should domiciliation in Canada. Such an entity cannot trade shares freely.
A public corporation in Canada, this company listed its shares to the public, in accordance with the rules and regulations mentioned in the Ontario Securities Act.
- Cooperative Firms
- The cooperative firm can be registered if certain rules are met.
- Each member is voluntary and has an equal democratic in the running of the business.
- A Cooperative returns limited Interest on investment and distributes its profit to the member in relation to the extent of their patronage.
No matter the type of company you are interested in, our company formation agents in Canada will guide each client when preparing the documents and applying for special permits and licenses.
Steps for the incorporation of a company in Canada
- Select the name of the company.
- Completing the requirement of an article of incorporation.
- Establishing the initial registered office address and the first board of directors.
- Filing the appropriate forms and pay the statutory fee.
- Completing provincial and territorial registration and other requirements.