An Overview of Company Registration in Canada

As businesses around the world grow, global expansion becomes a general consideration – a venture into overseas territories, reaching out to new customers abroad or in overseas lands. Canada emerges as a compelling destination due to its stable economy, geographic accessibility & skilled workforce. So, before setting up your business presence in Canada you must first understand the Canadian business environment to set yourself up for a successful international expansion. Company Registration in Canada talks about creating a separate legal entity independent of the authorities like owners & shareholders. This legal entity is also known as a corporation with its sets of liabilities & obligations. A Business Owner can protect their finances in case of legal disputes or financial difficulties by including a personal liability limit in the Company.

Can Anyone Register a Company in Canada From India?

Yes, Indian or Foreign citizens can register a Company in Canada but there are certain limitations, steps to take and requirements to meet. In case, you already have a registered business in India and you would like to change domicile to Canada or open a representative office then both are possible. You will need to register your business with the Canadian Government & decide the business structure you would like to set up. Documents showing your existing business will be required & you may need to change your business name in case a company already has that name in Canada. No matter what is the type of size of your company/business, you will need to incorporate it in one of the Canadian provinces or territories and you may need to get a Federal Business Number. Corporations will need to register with the Canada Revenue Agency or CRA & get a corporation income tax account.

Different Types of Business Structures in Canada

There are mainly 3 types of business structure in Canada that you can open:

• Partnership: It has more than one owner but can feel similar to a sole proprietorship. The partners in this structure are still responsible for debts as the business is not a separate legal entity. The split of revenue & profits is determined by the partners themselves.
• Sole Proprietorship: This type of Company is ideal for small businesses with a single owner. A Sole Proprietorship can be easily managed as compared to other options & can be a good idea if you are starting a creative or small business like a bakery. However, the owner takes personal responsibility for all debts & profits are taxed at personal income tax rates.
• Corporation: It’s a business that has a separate legal entity. Corporations tend to have more paperwork & requirements, but they also protect individuals from responsibility for the Company’s obligations or debts. Corporations need to be federally registered in Canada. A Corporation also pays taxes as an entity & can set up directors.

You need to choose a business structure that works for you & your company that aligns with your goals. Small businesses like shops, food stalls or small agencies are likely to be better suited as a sole proprietorship or partnership. While big companies like in banking or mining, looking to establish themselves can find a corporation a better fit.

Benefits of Company Registration in Canada

The following are some benefits of Canada Company Registration:

• Easy to Raise Funds: Raising funds in Canada is very easy, businesses can sell shares & equity to drive growth.
• Raise your reliability and worthiness of business: Most businesses would not enter into sales/contract agreements with unincorporated businesses. In this case, incorporating a Company in Canada can improve your credibility & growth potential.
• Trust & Credibility: Registering a Company in Canada makes your business more credible as well as trustworthy. Canadian corporation even attracts customers, suppliers, and investors who contribute to the long-terms success of the business just by fulfilling the criteria set by corporate governance. This can lead to increased confidence & trust in the business, positively impacting relationships with stakeholders & attracting potential investors/partners.
• Grants and Incentives from the Government: Canada serves as a magnet & a huge hub for grants & schemes which encourages innovation and the growth of the business. These benefits help the business in hiring & training employees, funding for R&D and expand into new markets. By incorporating a company in Canada, businesses can take advantage of these programs & boost their growth potential.
• Cost of Operations: Foreign or Overseas businesses looking to expand their presence in Canada will find the tax requirements highly favourable, including the country’s low corporate income tax rate & well-designed tax codes. Canada proudly holds the distinction of having the lowest business tax among the G7 countries.

Eligibility Criteria for Company Registration in Canada

The following is the criteria for Canada Company Registration:

Documents Required for Canada Company Registration

The following are some vital documents required for Company Registration in Canada:

• AoA or Articles of Association of the Company;
• Title Agreement of the Registered Office Address;
• Details of Board of Directors;
• Lease agreement of the selected office space;
• Federal Business Number from Canadian Authority for Corporate transactions;
• Proof of residence for all the foreign shareholders;
• Address, Passports and visa;
• Identity proof of the company’s shareholders, translated as well as notarized;
• Certified copy of the Passport & Visa of the applicant;
• Details of the Paid-up capital for Company Registration in Canada;
• Board Resolution (if required);
• Fit & Proper Criteria of the appointed Managers;
• Company Managers’ details and their corresponding identification proofs & appointment letters;
• Company Founders’ details.

Step-by-Step Process for Company Registration in Canada

The following are steps for Company Registration in Canada:

Step 1: Decide If you want to register your Business at the Federal or Provincial Level: The first step of Company Registration in Canada is to decide if the business should be registered at the provincial level or Federal Level. The proprietor may choose to set up the firm either at the Federal level or Provincial Level. In a Provincial level, a company established in a particular province is exclusively permitted to conduct commercial operations there. Registering a company at the Federal level, it enables an entrepreneur to operate under the same name across all territories & states.

Step 2: Acquire Business Number: The second step for Canada Company Registration is to get the Business Number. The Provincial & Federal Authorities will recognize the organization by its 9-digit account number or business number.

Step 3: Choose the Business Structure: The next step is to choose the legal business structure like Corporation, Sole Proprietorship or Partnership Firm.

Step 4: Choose a Company Name & Reserve It: Then, you need to select the Company’s Name. The name of the Company should not be the same or related to the business name of an already registered firm, and it should not be against the law. After selecting a name of the company, then it must be checked to see if it is available at the NUANS or corporate registry of Canada. In case the name is available, then you can register & reserve the name of the company.

Step 5: Registered Office Address: Every business that has been set up needs to have a registered office. The registered office is the place where the business papers & official records are preserved & where important notifications regarding the firm are received.

Step 6: Collect all the Required Documents: All the vital documents like AOA and registered address must be collected and the list of all the vital documents are mentioned above.

Step 7: Registration Process: Once you collect all the documents, then you need to file your application for Company Registration along with the necessary documents with the Government.

Step 8: Register for HST or GST: This is the last step for Canada Company Registration, you need to sign up for a GST or HST account, if the anticipated annual revenue of the firm is $30,000 or higher.

Why Choose Whizseed for Canada Company Registration?

Canada Company registration is a sequential procedure that includes the selection of business structure, naming and registering the company name, producing necessary documents and filing for company registration to the government authorities. Whizseed has a team of professionals who are experienced in their respective field and they are going to help you out on all the stages of company registration in Canada. Hence in order to do stressless and cost effective company registration you should choose whizseed.