INCORPORATION OF BUSINESS
You may do your business in Canada as a Sole Proprietor, or a Partnership Firm or you may incorporate a Company to run your business. Every business structure has its pros and cons.
As a small business corporation, the Corporations in Canada enjoy special advantages. Apart from its status as a separate legal entity from its owners and limited liability, the corporation enjoys the benefits of low-income tax rates, minimum number of directors, payment of salaries to owner-employees and so on.
Low Tax Advantage: A Canadian Controlled Private Incorporation in Ontario has to pay Taxes as less as 12.2% on its taxable income.
A Company may be incorporated as a Federal Corporation or a Provincial Corporation.
Federal Corporations:
A Federal Incorporation status provides recognition to a Corporation throughout Canada whereas in the case of Provincial incorporated companies, it is limited to the particular province of incorporation. However, a Federal Incorporation is required to do the extra-provincial registration in a state where the Company wants to conduct its business operations.
It is mandatory that at least 25% of the directors of a Federally incorporated company must be Canadian Citizens or Permanent Residents of Canada.
Provincial Corporations:
Provincial Corporations are the Companies which are incorporated provincially. The name of the Provincial Company is protected within the province of registration. Moreover, the rules of incorporation for a Provincial Company are not as stringent as those of a Federal incorporation.
Easy to Incorporate at a reasonable cost:
To run a business as a Corporation in Canada is not difficult and complicated. A Corporation can be formed with a fee as low as $200 only under Federal Jurisdiction. However, the Provincial Incorporations may have a different set of fee structures depending upon the province of incorporation.
Setting up of Indian Subsidiary Company or Associated Company:
To set up an Indian Subsidiary or an Associated Company in Canada and invest in Funds in Canada not only involves compliance with Canadian Law but also requires compliance with Indian FEMA laws, Companies Act 2013 etc. Due to our strong roots in India, we at AccountTax Pros are fully equipped with Indian laws like FEMA and Companies Act etc. as well as Canadian Laws.
We assist Indian Companies in the smooth set-up of their associated company in Canada and the immigration of their employees and directors.
At AccountTax Pros, we help new startups and multinational companies in the formation of Federal or Provincial Corporations who wish to conduct their business in Canada as a Company. Our services in the incorporation of the company include:
- Structure of the Company: CCPC, Private Company, Not for Profit Company or other
- Preparation of the Articles of Association by incorporating depending upon the level of controls and other requirements.
- Planning and Advise on the Share Capital Structure and Class of Shares
- The shareholders’ rights attached to the different classes of shares
- Filing Applications and incorporating a company
- Getting the extra-provincial Registration of the Company
- Assisting in getting the Business number of the Corporation from CRA
- Preparation of Secretarial Records of the Company i.e. Resolutions, Minute books, Shared certificate