Company registration in Canada

Canada is a jurisdiction characterized by stability for business structures. Therefore, many entrepreneurs choose this particular country: both those who are just starting their commercial journey, and those who want to expand the boundaries of their commercial operations. Company registration in Canada has many nuances, can be difficult and somewhat confusing. Below we will try to deal with some of the main points.

Planning to launch business in Canada

First and main thing businesspersons need to pay attention to and where to start is the development of a general idea. First of all, it is necessary to think over all the details of the functioning of the future commercial structure, collect mandatory information and carry out certain calculations. You can start from the following points:

• study of market trends and activities of firms that may become your potential competitors;
• formulate and designate business goals and what specific actions they will require;
• determine what is the main significance of your service or product for consumers;
• indicate what market niche your company will occupy;
• work to bring your project to the attention of mentors who have extensive professional experience in your field.

Registration company in Canada: firms’ structures

Prior to starting business in Canada, you need to read in detail and understand the meaning of structuring business forms in this jurisdiction.

1. Ownership by a sole proprietor. To start a commercial activity – this is the most common type, especially with regards to taxation. Foreign company registration in Canada may be performed in one form, and later retrained into another.
2. Management and ownership of the enterprise is carried out by a group of persons of two or more people. In partnerships, commercial roles, as well as profits, are shared among partner members.
3. Corporation. It is a shareholding structure that is required to prepare and file tax returns on a regular basis and keep detailed records of all its transactions.
4. Cooperative structure – an enterprise that is controlled and operates in accordance with the general needs of individuals.
5. Organization of a non-profit type. The procedure for starting such a business is no different from any other. Organizations in this category distribute services or products that can be useful to people, while not setting themselves the goal of making a profit.

Requirements for registering a company in Canada

The applicant must draw up and submit a detailed business plan. The next stage is the choice of a name for the future enterprise: it should not repeat any of the existing ones. Below are documentation needed for company registration in Canada for non residents:

• documentary evidence of passing registration;
• Statute and founders’ agreement;
• officially confirmed information about the office;
• confirmation of the uniqueness of the selected name;
• a letter from the register of enterprises of jurisdiction with approval of organization’ establishment;
• assignment of a federal and tax number;
• confirmation of the legal address;
• confirmation of the availability and deposit of the required initial capital amount;
• relevant receipts for fees’ payment.

Advantages of registration of company in Canada

1. Easy and fast registration. Compared to other jurisdictions, Canada offers a fairly simple procedure for establishing a company; online registration of company in Canada is also possible.
2. High assessment of the country’s economy at the global level.
3. Assistance to the state apparatus in opening and launching businesses. Thus, organization’ establishment in Canada is quite simple and requires a few steps to complete. In addition, the country provides many benefits and beneficial management schemes.
4. Many industries and commercial areas in which you can develop.
5. Favorable taxation – rates for paying taxes in Canada are lower than in some other jurisdictions. The general federal tax is 15%, however, if the firm is controlled by Canadian resident shareholders, the rate can be reduced to 11%.

Company registration in Ontario Canada, despite the general ease of registration, can be fraught with some difficulties, in particular, the nuances of a legal nature. Therefore, we recommend that you seek the assistance of qualified experts experienced in the establishment and licensing of firms.