The competitiveness and the highly developed economy of Canada are the testimony of a friendly and opened market where entrepreneurs worldwide can activate in varied areas of business, considering a multitude of advantages adapted with the market’s requirements and needs. With an FDI inflow of about $49 billion registered in 2016 and a nominal GDP of around $1.52 trillion, Canada is an economic force (10th position among countries worldwide) and performant cities like Ottawa (the capital of Canada), Vancouver, Montreal, Quebec or Toronto are top locations for business purposes. Investors from abroad can establish several business forms like corporations, partnerships, co-operatives or sole proprietorships. For each kind of entity, varied conditions and requirements are imposed, in accordance with the Commercial and Civil Laws in Canada. The requirements for starting a business in Canada can be explained by our team of Canadian company formation specialists who can also help you when drafting the documents with the authorities in charge.
Two or more individuals can establish a partnership in Canada, which is considered a non-incorporated business, where the financial resources are combined and invested in the company or business. In accordance, the profits of the firm are shared as established in an agreed contract signed when the partnership was settled. In general partnerships in Canada, partners are subject to legally responsible debt payments, compared to the limited partnerships where an individual can underwrite to a business without being part of its actions. The main benefits of setting a partnership in Canada are the low costs, tax advantages and the equal share of the profits at a certain point.
Corporations in Canada
A corporation is also a suitable business option in Canada, considering the legal aspects and the requirements in this matter. For instance, the stockholder of such entity is not responsible for the company’s debts or any kind of obligations. Also, starting a company in Canada in the form of a corporation will be subject to a particular tax system and the business owner can have several advantages. One should know that the ownership of a corporation in Canada is transferable, and the formation of the company is made at a federal or territorial level. For any kind of incorporation in Canada, we remind that our company formation agents in Canada are at your disposal with comprehensive information about the registration process and the steps to consider when drafting the documents with the authorities in charge of business registration.
Co-operatives in Canada
The profit distribution, the limited liability, and full control of the activities are among attributes of a co-operative in Canada. The association of members of a co-operative oversees its activities and such business entity can be set up as a for-profit or not-for-profit body. Even if it’s not the main selection when establishing a company, investors can choose this kind of entity if there is a need for gathering resources and providing access to mutual needs in accordance with the initial project. Please consider that at any time, an individual can change the business structure and adopt a new one if the plans have reformed or the improvements demand such transformation.
Documents to register a company in Canada
Companies in Canada can be registered if the following documents are provided to the local institutions:
• articles of association through the federal incorporation in Canada; • the business number issued by the Canada Revenue Agency for tax purposes; • information about the shareholders (name, address, nationality); • details about the business address; • information about the company’s bank account.
Once the company registration process in Canada has successfully ended, the business owner or his/her representative must apply for special licenses and permits, in order to start the activities. Besides legal support for your future company, a suitable guidance when registering a business in Canada will be offered by our Canadian specialists in company incorporation.
For further information about how to register a company in Canada, we invite you to contact our team of advisors.