Register your corporation in Canada

Why should you register your corporation in Canada?

For any entrepreneur, incorporating their business is a significant decision that can bring numerous benefits, including tax benefits and legal protection. Many independent contractors and aspiring business owners who have just started running a business often ask themselves whether they should register their businesses or not. Those who are still on the fence should be aware of the various benefits that come with registering a business in Canada. If expanding the business is part of your business plan, incorporating the business as a corporation will be a rational approach.

The following are the main benefits of registering your corporation in Canada:

1. Liability Protection: A company incorporated in Canada is regarded as a distinct entity with its own legal personality. This implies that the personal assets of the owner will not be affected in the case of any legal action, lawsuit, or a claim against the company. Moreover, a corporation can enter into independent contracts and agreements with different parties and also maintain its bank account instead of doing it on the behalf of a person.
2. Brand Name Protection: With the growth of digital marketing, safeguarding the brand name has become an essential practice. When a business is incorporated in a province of Canada such as Ontario, exclusive rights to the brand name within the province are obtained, making it illegal for others to use the same name in Ontario. On the other hand, incorporating a business at the Canada wide instead of one specific province provides protection across Canada. However, it is recommended to apply for a trademark for stronger brand protection. This will restrict others from using even similar brand names that may cause likelihood of confusion among consumers.
3. Tax Savings: The income you earn from a job in Canada will be taxed more heavily than the revenue you make through a business. Income would be a payment from an employer, and revenue would be sales you make through business. When you start a business, you only pay taxes on the net profit, not on the gross income. Moreover, the tax percentage on business revenue is typically lower than that on salaries and other income sources. This can result in significant tax savings and the amount saved can be reinvested in the business.

The following are the essential steps involved in the incorporation process:

Step 1: Choose a Jurisdiction
Companies can be incorporated in Canada at either the provincial level such as Ontario or federal level. If the business intends to operate in multiple provinces, it is recommended to incorporate it at the federal level. However, if the company plans to operate in only one province, it is advised to proceed with provincial incorporation.

Step 2: Brand Name Selection
When registering your corporation in Canada, you can choose between a numbered name (e.g., 12345678 Canada Inc.) or a word name (e.g., ABC Business Corp.) for your corporation. Having a word name can be beneficial for your business in terms of marketing and advertising. The chosen name should be unique and distinguishable enough to make your brand stand out from competitors. Adding a legal suffix, such as Corp., Inc., Ltd., etc. is a mandatory requirement to complete the corporation’s name, yet most of them mean the same thing.

Step 3: Articles of Incorporation
Articles of incorporation or company formation documents are indispensable for establishing the structure of a corporation. While incorporating a business in Canada, you will have two options either to opt for basic incorporation or custom incorporation. Basic incorporation works well for small businesses as you will get pre-determined articles of incorporation. Whereas custom incorporation allows you to personalize the articles of incorporation according to your business needs. While registering your business you can choose to have the articles of incorporation drafted either in English or French, as per your preference.

Step 4: Registered office address and board of directors
To be eligible to register a corporation in Canada, it is mandatory to have a registered office address within the country. Furthermore, when establishing a company, complete information of directors such as name, address, and status in Canada must be disclosed.

How the Startup Visa Services team helps

Engage Startup Visa Services to help you register your corporation in Canada. To obtain the incorporation certificate and enjoy the incorporation benefits, meeting all the legal requirements and following the registration process is imperative. The Startup Visa Services team takes care of the entire registration process, including preparing the required documents and ensuring that you meet all the legal criteria. Our extensive knowledge in this area and exceptional customer service make us a go-to choice for entrepreneurs looking to incorporate their businesses in Canada.

Are you an immigration expert who helps entrepreneurs looking to launch or expand their businesses in Canada? Do you need assistance with writing a business plan, conducting industry & market research, powerpoint preparation, formulating intellectual property strategies, and securing government funding, grants and subsidies for your clients?

Feel free to get in touch with the Startup Visa Services team to learn more about setting up a Canadian corporation and how you can turn your business idea into reality.

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