Congratulations! You’ve incorporated your business! Now, there are some important things to do in order to keep your company up-to-date and compliant. So, in this article, we will discuss the 6 Important steps after Incorporation
You might have noticed that incorporating your company is crucial for building a successful business. It’s true that when you incorporate, your shares will be given legal status. This gives investors much more security when investing in your company. Also, when you incorporate your business, you can separate your personal assets from the business. This separation allows an organization to do things that an individual may not be able to do. For example, if there is a lawsuit against the company over acts of negligence or fraud committed by one of its owners, those assets could be seized and the personal assets of individuals are protected.
When you receive your certificate of incorporation, you can start setting up your company. This will require preparing documents like agreements between shareholders, insurance policies, and corporate by-laws, tracking of your business accounts, and hiring employees. Therefore, this article will provide essential guidelines for the recently incorporated company. In fact, our team at Yogi & Associates is available 24/7. You can quickly contact our accountant in Mississauga for assistance with the 6 Important steps after Incorporation
6 Important Steps After Incorporation: Complete Guide
When you incorporate your company, you are halfway done. But after incorporating, there is still a lot to do that you should not miss. So, the following are 6 important steps after incorporation:
1. Register for a Business Number (BN)
2. Create a bank account for your company
3. Organize a meeting for tasks management
4. Schedule the initial shareholders’ meeting
5. Consider obtaining a GST/HST number
6. Continue to maintain the corporate maintenance
“To be successful, you have to have your heart in your business, and your business in your heart.” -Thomas Watson, Former CEO, IBM
1. Register for a Business Number (BN)
This is the first thing among 6 important steps after incorporation. Getting your CRA Business Number will depend on the type of incorporation you select. For example, for federal corporations, the procedure is quick. However, the process can take some time for provincial corporations and may require additional registrations. You can get your CRA business number online by visiting Business Registration Online. You can also get the business number by phone call to CRA. Simply dial 1-800-959-5525.
2. Create a Bank Account For Your Company
After your business is incorporated, opening a bank account for your corporation or company is crucial. Because you won’t benefit from incorporation if you don’t keep your personal and corporate finances separate. You can take advantage of our accounting services in Mississauga to learn more in-depth information on creating a bank account for your company.
Additionally, before visiting the bank, ensure you have your Articles of Incorporation. The bank might request to see the incorporation certificate. The bank may also want proof that you are or are not a director of the corporation. Additionally, ensure sure your full business name is used while opening the new bank account.
3. Organize a Meeting for Tasks Management
The corporation’s organization is one of the most important things among the steps after incorporation. The incorporation owner or a director may hold an “administrative meeting” for this reason. But each director mentioned in Form 2 – Initial Registered Office Address and First Board of Directors must get notice of this meeting at least five days beforehand. The meeting’s date, time, and location must all be included in the notification. In the administrative meeting, the directors can thus:
- Establish the bylaws
- Authorize the issuance of shares and other securities
- Select the officials
- Appoint an interim auditor to run the business until the first shareholder meeting
1. Create the by-laws
By-laws are policies that control how a corporation conducts its daily business. For instance, you might desire to establish corporate policies related to the Canada Business Corporations Act (CBCA). Alternatively, you could modify some of the CBCA’s rules if the Act permits it. Consequently, some by-laws may be able to help you with this.
Advantages of by-laws:
A corporation gains from bylaws in a variety of ways, for instance:
- By-laws help you to decide when your company’s fiscal year ends.
- You can easily manage banking transactions through by-laws.
- You can analyze officers’ selections, credentials, and responsibilities using by-laws.
- The wages of directors and officers are governed by by-laws.
- Through by-laws, you can create the director and officer salaries and payments.
- These laws assist in recording the steps to schedule and hold director and shareholder meetings.
- By-laws help to establish the bare minimum of attendees required for directors’ and shareholders’ meetings. A quorum is established by by-laws (a group of people that makes business decisions).
“Incredible things in the business world are never made by a single person but by a team.” -Steve Jobs
2. Deliver shares and other securities
This is one of the first things your corporation has to do after being incorporated. When a corporation issues shares in a person’s name, that person becomes a shareholder. By majority vote, directors may decide to issue shares. The decision of the directors to issue shares shall be documented in the minute books of the Corporation.
A person’s investment in the corporation is represented by the payment for a share in a form that the board chooses. Additionally, a share cannot be issued by the corporation until it has been fully compensated or paid for it. Shares may also be exchanged in the form of money, services, or other assets provided to the corporation.
3. Choose the officers
The everyday business of the corporation is handled by the officers. Thus, these officers are chosen by the directors. Along with the directors, the officers will establish the corporation’s management. The directors may assign officers to any position they see fit. President, secretary, or any other role, for instance.
4. Schedule the Initial Shareholders’ Meeting
The corporation’s first shareholders’ meeting must occur within 18 months after its incorporation date. The first shareholders’ meeting is organized by the directors of your company. Additionally, this gathering typically follows the directors’ initial organizational meeting. Moreover, in this meeting, the shareholders can make the following decisions:
- Elect directors.
- Verify, alter, or reject the bylaws that the directors have made.
- Choose an auditor. This auditor may be the same person or a different person the directors chose.
5. Consider Obtaining a GST/HST Number
It is essential to know whether you should register for a GST/HST number or not. You must apply for a GST/HST number if your estimated yearly gross revenue exceeds $30,000. Additionally, you can charge sales tax to your clients. However, it is not required to register for GST/HST number and collect sales tax if your revenue will fall below the $30,000 mark.
To visit our blog and learn more about the GST number, click here., GST Number: How to Register for GST Number.
6. Continue to Maintain the Corporate Maintenance
It is the sixth and final but most important step after incorporation. Following incorporation, your company is required to keep certain records and documentation. You should keep your corporation up to date and in line with the law. Therefore, each business is legally compelled to maintain the following three informational items current:
1. Minute book and share records
It’s crucial to keep your business records organized once your firm has been founded. You might make use of a minute book for this purpose. Key business documents are listed in the Minute Book. These records include annual reports, articles of incorporation, by-laws, resolutions of directors, resolutions of shareholders, and minutes of shareholder and director meetings.
2. Company Updates
You must submit paperwork to the government any time your company’s information changes. For instance, you must submit paperwork to the government if you want to add a new director or change your address. Additionally, prepare corporate resolutions that formally accept the company’s changes.
3. Annual Return and Resolutions
After you incorporate, your business must submit a yearly return to the government and pay the related fees. Additionally, you will need to prepare annual resolutions for directors and shareholders. All of them are required paperwork to keep your company running well. Further, the government can dissolve your corporation if you don’t submit the yearly return.
The Bottom Line!
We hope you have gained enough knowledge about the 6 important steps after incorporation. You, as a Canadian entrepreneur, should consider incorporating your business. Because it will protect your business from personal liability and allow room for growth, expansion, and success. So you need to know about these 6 important steps after incorporation. We hope you feel more confident about moving forward with your new company. If you have questions, don’t hesitate to call Yogi & Associates or book an appointment with our accountant in Mississauga. We’re always ready and willing to help our clients achieve success.