For an overview of the Canadian business registration process, go here:
Think about the best way to organize your firm legally
The major examples of business components in this country include partnership, corporation, cooperative, or sole proprietorship. Since every business has its pros and cons, one should select one in conjunction with how well it fits your needs.
Pick a company name
Select a name for your company that is unique. Confirm to see that it adheres to the naming requirements of the state or country where you intend to set up your business. Check the accessibility of the name and see whether it has been guaranteed by another organization.
Filing a business registration
The steps required for registration change depending on the type of organization being formed. Each basic structure is described below:
Sole proprietorship or a partnership
One should record the business name with the local government if you are starting the above form of business. It may be a handful to enrol your company name with the federal government if you intend to carry on business in more than one state or province.
Corporations
Pick either government or commonplace joining. Companies with a written constitution are allowed to work anywhere in Canada, whereas those with fundamental principles are only allowed to do so within that province or territory. By presenting important documents, such as the Articles of Incorporation, your company can be registered with Corporations Canada or the corporate register of your province or territory.
Obtain the required licenses and permits
Your company may require federal, provincial, or local licenses and permits to operate legally. Figure out which licenses and allows are important for your business in your space.
Register for taxes
By registering with the Canada Revenue Agency and getting a business number (BN), you can start contributing your fair share of taxes. This number is necessary for you at all times when interacting with the government, including when filing tax returns, handling payroll, or receiving benefits. Supposing your business meets or exceeds the GST/HST enlistment limit, you should enrol for GST/HST. You may be required to enrol for the provincial sales tax (PST) if your province has one in addition to the GST/HST. Determine what your country needs from you.
Register for provincial sales tax (PST)
Establish a payroll deduction and remit payment to the CRA by opening an employer account if you want to employ people. For this, you’ll need to open a payroll account and get a tax ID number for your company.
Register for employer accounts
Be Familiar with Canadian Labour Laws and Regulations Be aware of your responsibilities as an employer in Canada by learning about the minimum pay, allowed working hours, and recognized holidays.
Create a bank account for your company
Use a bank account dedicated solely to your company’s financial dealings. This will facilitate easier accounting and tax filing by separating your corporate and personal funds.
Consider purchasing business insurance
Purchasing insurance can help protect your firm from future losses. Speak to agents about what policies will work best for your company. The procedure and documentation needed to register a business in one province or territory may differ slightly from those in another. Therefore, it is recommended to get professional assistance and check with the appropriate provincial or territorial government organizations to guarantee conformity with local rules.
The cost of registering a company
Company formation costs in Canada may differ from one province or territory to the next, based on the business structure chosen and the range of services needed. Here are some typical expenses:
Name search and reservation
Depending on the province or territory, the cost of a name search and reservation might be anywhere from $60 to $80.
Payment for registration
Costs to register a company depend on its legal form. Here are some ballpark figures:
Sole proprietorship or a partnership
They can be formed for between $40 and $100.
Corporation
Provincial incorporation fees are between 2 hundred dollars to 5 hundred dollars, meanwhile, federal incorporation fees range from $300 to $600. Articles of Incorporation filing fees, for example, may incur additional charges beyond those listed above.
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Types of legal business structures in Canada
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