5 Easy Steps to Incorporate Your Business in Canada

by | Jun 3, 2022

Are you planning to incorporate your business in Canada? If you don’t know about the procedure of how to incorporate your business in Canada, then never fear. Because this guide is for you. Since a corporation is its own legal entity; so, it offers many benefits. For example, lower tax rates and limited liability.

To help you better understand the whole process of incorporating a business, Yogi & Associates have created this simple guide. Here, we will discuss five important steps involved with how to incorporate your business in Canada.

There is a lot of advice out there that can make it seem more complex than it needs to be. But don’t stress, as this article is a comprehensive guide to Yogi & Associates’ vision of how to incorporate your business in Canada. Because we provide the best service of business incorporation in Mississauga, we want to make sure your incorporation experience is as smooth as possible from start to finish. So feel free to contact us. Also, you can conveniently find us in Mississauga.

Decide whether to Incorporate Federally or Provincially

 

Parameters Federal Incorporation Provincial Incorporation
1. Permission to Conduct Business
Permits you to conduct business across the country. Allows to conduct your business only in a single province
2. Business Name Protection It provides business name protection all across Canada Provides business name protection only in the province where the business is situated.
3. Recognition Gets recognition on a national level Gets recognition only within the province where business is conducted
4. Cost Less expensive to initiate and renew incorporation More expensive to incorporate provincially
5. Directory Residency Requirements Federal corporations demand that at least 25% of the directors of a corporation must be resident Canadians No directory residency requirements

 

In simple words, making the final decision to incorporate your business can be a tough one. To take the right decision, you should consult some professional counselor. The good thing is that we offer business incorporation services in Mississauga. So contact Yogi & Associates and get guidance from our expert business incorporation advisor regarding how to choose between federal incorporation and provincial incorporation.

Incorporate your business in Canada

Select a Corporate Name

A corporate name is the legal name of your corporation. Moreover, this name represents your corporation, and you must use it in all contracts and invoices. You can always incorporate a numbered company. Such as 12345678 Canada Inc. However, you can choose a name at a later date. Moreover, make sure your business name must fulfill three legal requirements:

  1. A distinctive element
  2. A descriptive element
  3. A legal ending

[Distinctive] + [Descriptive] + [Legal Ending]

For instance: Levi Classy Sneakers Inc.

Important! Your corporate name is different from a trademark or domain name. So do not assume that owning a domain means it can be your corporate name.

Do NAUNS Name Search for Corporate Name

It doesn’t matter where you incorporate your business in Canada. You will need to have a NAUNS name search done to ensure the suitability of the corporate name you have selected. NUANS stands for New Upgraded Automated Name Search. It is Canada’s official database of incorporated and trademarked businesses across the country. So, you can search different names manually via the internet. And prepare a NUANS report. This report will show you a listing of trademarked or incorporated businesses that have similar names to the business that you are starting. 

If the search results get approved, and your name is accepted, it is then reserved for a couple of days. During this time, you must complete the incorporation process for your business or restart the procedure again.

“What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.” -Dave Thomas

For more information about starting a new business in Canada, please check our article, How to Start Your Business in Canada?

Prepare Your Documents

To incorporate your business, you need to prepare the following documents:

  • The Articles of Incorporation: The rules and regulations that will control the conduct of the company members.
  • The Notice of Offices: It provides the location of the two required offices for your corporation; the registered office and the records office.
  • The Memorandum: It displays the rules for the management of the company.
Incorporate your business in Canada

Organize Your Documents and Apply for Incorporation

You can incorporate your business online by using the websites of corporations Canada and the provincial registries. You can also submit your application for incorporation by mailing the forms and fees to the appropriate registrar. Then you are ready to run a corporate business.

Remember: If you are incorporating federally, you will also need to prepare a Notice of Directors (and submit a federally-based NUANS report). On the contrary, when filing provincially, be sure you check the document requirements for your specific province before you proceed to the next step.

Finals thoughts!

Ultimately, incorporating your business in Canada is a great way to establish your company and make sure that it stays protected. It’s a step that all new businesses should take, as it gives you the tools to start up and run your company. The good news is that you can easily manage to incorporate your business in Canada. Because it is not as hard as it may seem. It really can be a simple process, with clear-cut guidelines for your business to follow.

Therefore, you can count on Yogi & Associates for friendly, professional advice about how to incorporate your business in Canada. We take the time to know you and your business, and we always have a thorough understanding of the tax laws. Feel free to contact us. And take advantage of our business incorporation services in Mississauga.

Get in touch with Yogi & Associates!