Registering a Business in Canada

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Type of the Business:

In Canada you can run a business as a sole proprietorship, partnership, and corporation. As a corporation, your business is a legal entity on its own, separate from you or any shareholders, and is seen almost like an individual under the law.

You may choose to incorporate your business at the federal or provincial level, if you plan on expanding outside of your province in the future, you’ll want to incorporate federally.

How to incorporate a business Federally

Incorporating a company federally is a four-step process.

Step 1: Name your corporation
Step 2: Create your articles of incorporation
Step 3: Establish the initial registered office address and first board of directors
Step 4: Submit and pay the fee

Step 1: Name your corporation

Every incorporation must have a name that legally determines and identifies it. The first step to incorporating is deciding on how you want to name your corporation.

Your corporation can have either a corporate:

word name, made up of letters and symbols; or
numbered name, for example, 12345678 Canada Inc.

A numbered name is the simplest way to name your corporation because the Canadian government assign the number. You can use a different name to conduct business.

With a word name, you have the legal right to use it across Canada once Corporations Canada approved your name.

Step 2: Create your articles of incorporation

This step establishes the structure of your corporation.

If you are incorporating a small business, consider choosing basic incorporation. This basic incorporation can enlist available pre-packaged

pre-determined articles of incorporation (you can amend them later, as needed)
one or two classes of shares
a maximum of 10 directors
an assigned, numbered corporate name.

Alternatively, you can customize your articles of incorporation to suit your specific business needs. In this case, choose custom incorporation and specify:

your corporate name
your share structure and any restrictions on share transfers
your corporation's number of directors
any restrictions you might want to set for your business or business activities
any other provisions.

Language of the articles

Your articles of incorporation can be in the official language of your choice. They can be:
in either official language (English or French)
in both official languages (English and French)
bilingual (using both official languages equally).

Step 3: Establish the initial registered office address and first board of directors

Every incorporated business must have a registered office address and a board of directors.

The registered office is where you must keep your corporate records and where official documents will be served on the corporation. Choose an address where you will be sure to receive any legal of the corporation.

You also need to decide who will make up your corporation's board of directors. Check the Director requirements to make sure your directors meet the eligibility criteria. When you incorporate, you have to disclose each director's first name, last name, address, and indicate whether or not they are a resident Canadian.