Incorporation of Business

Company Incorporation in Canada

Incorporating your business in Canada is an essential step to establishing a legal entity separate from its owners. If you’re planning to start your business in Canada or expand your existing business, Account Tax Pros offers end-to-end assistance and advisory. Company Incorporation in Canada offers several benefits such as tax benefits, credibility, liability and protection. Company incorporation is the process of legally complying with the country’s laws of business in Canada. This separate legal entity, called a corporation, allows the business to handle its own taxes, contracts, and legal responsibilities. Incorporation protects personal assets from business liabilities and offers potential tax savings.

How to Incorporate a Business in Canada?

The process to incorporate a business in Canada might differ whether you are incorporating your business at the federal or provincial level: 

1) Choose a Business Name: 

Your business name must be unique. It’s essential to perform a NUANS (Newly Upgraded Automated Name Search) report to ensure no other company uses the same name.

2) Select Incorporation Type:

• Federal Incorporation: Allows you to operate across Canada with one registration.
• Provincial Incorporation: Allows you to operate within a specific province.

3) Submit Articles of Incorporation

File an Articles of Incorporation, which includes business structure like the company's name, office address, and information about directors.

4) Pay Incorporation Fees

The business incorporation in Canada fees depend on your jurisdiction. Business consultants like Account Tax Pros assist in the complete incorporation process

5) Register for Taxes

Once your business is registered, you must register for various federal and provincial taxes, such as GST/HST and payroll tax, with the Canada Revenue Agency (CRA).

Documents Required for Business Incorporation in Canada

• Articles of Incorporation
• NUANS Report (for name availability)
• Director and Officer Information
• Registered Office Address
• Incorporation Fee Payment

Benefits of Incorporating Businesses in Canada

Incorporating your business in Canada offers several advantages:

1. Limited Liability: As a separate legal entity, your corporation shields personal assets from business-related debts or lawsuits.
2. Tax Benefits: Incorporated companies in Canada enjoy significant tax benefits, such as the Small Business Deduction. This reduces the corporate tax rate on the first $500,000 of active business income.
3. Perpetual Existence: Unlike sole proprietorships, incorporated businesses continue to exist even if the owner retires or passes away, ensuring stability and growth potential.
4. Access to Capital: Incorporated businesses have more opportunities to raise capital through investors or selling shares.

Tax Benefits of Business Registration in Canada

Incorporating your business offers a range of tax benefits:

• Small Business Deduction (SBD): Reduces the tax rate on the first $500,000 of income for qualifying businesses.
• Income Splitting: You can distribute income among shareholders (including family members) to reduce overall tax liabilities.
• Tax Deferral: You can delay paying personal taxes by leaving profits in the corporation.

Setting up of Indian Subsidiary Company or Associated Company:

To set up an Indian Subsidiary or an Associated Company in Canada and invest in Funds in Canada not only involves compliance with Canadian Law but also requires compliance with Indian FEMA laws, Companies Act 2013 etc. Due to our strong roots in India, we at AccountTax Pros are fully equipped with Indian laws like FEMA and Companies Act etc. as well as Canadian Laws.

We assist Indian Companies in the smooth set-up of their associated company in Canada and the immigration of their employees and directors.