Business Directory and Guide - iBizDir.com

When choosing to incorporate a business, it is important to contact a local professional to aide in the process. Many people are unaware of the different types of incorporation that may be obtained. Consulting with a professional can help the business owner to learn about the differences in various incorporations, and can make the process of registering for incorporation smooth. If an individual chooses not to discuss their situation with a professional, they must research and understand the different types of incorporation available to them.

Incorporating a business in Canada can either be done provincially or federally. If business is only going to be conducted in one province, registering for a province incorporation is the best suited option; however, if the company is expected to conduct business in multiple provinces, a federal registration is more appropriate. The benefits of registering federally are the freedom to use the corporations name in every province, no matter how similar it is to a local corporation, and the fact that business can be conducted in every province within the country. The only other considerations that should be made are that federal incorporation requires more documents to be filed annually and the cost of registration is greater than that of province incorporation. If the need to expand incorporation into other provinces ever arises, one must simply register their company in the desired province for incorporation, or extra-provincial incorporation. It is also possible to register a corporation for federal incorporation if the business chooses to conduct business in multiple provinces.

Once it is determined which type of incorporation is appropriate, choosing a name for the corporation is the next step. While business that are not incorporated are quite simple to name, doing so for a corporation is a little more difficult. A corporate name is usually required to contain an additive legal description, such as Incorporated, a main body distinguishing the corporation from other businesses, and a section that describes the objectives of the business. Corporate names in Canada may include French or English languages, or a combination of the two. The only provision of naming a corporation is that the federal Corporations Directorate or provincial Registry will not allow a name to be registered that is in any way similar to an established corporation.

Determining a name for a corporation is made even more difficult by the requirement to have the potential name searched. Federal incorporation and many provincial incorporations require that a NUANS search is performed. This search makes sure that the name is suitable for the business wishing to become incorporated. Once the search is complete and a suitable name is chosen, that name will be reserved for a certain period of time. If the company does not file the necessary documents within this time, the process must be repeated, and the name might not be available. A name must be chosen either before or when they register their company to become incorporated.

Every corporation must file specific documents to legally become incorporated. These documents must include Articles of Incorporation, Notice of Offices, and a Memorandum. The Articles of Incorporation are rules set out to limit the actions of individual members of the corporation. Notice of Offices is simply a document providing the addresses of the records office and the registered office of the corporation. A Memorandum is a set of rules to regulate the actions of the business.

There may be other documents required to become incorporated, depending on the type of incorporation. Federal incorporation generally requires that a Notice of Directors is filed with registration. This form contains the names, addresses, and other contact information for anyone classified as a director for the corporation. Once shareholders are named, directors are voted upon and elected annually. If no directors are elected at shareholder meetings, the incumbent directors will resume in their position until new directors are elected. Most provinces require different information to accompany the standard documents, so it is important to check with local offices before deciding to become incorporated.

Once it is determined which type of incorporation is appropriate, and the necessary information has been gathered, business owners may register their company for incorporation by two different methods. Traditional registration can be completed by filling out the required documents and mailing them and registration fees to the Registrar. Since everything is becoming more technology driven, many provinces are now offering online registration. Registering for incorporation online eliminates the hassle of physically filling out incorporation documents and can mean approval more quickly than typical registration. The fees for becoming incorporated range from $200.00 to $250.00, depending on which method of registration is used. When the documents are received by the Registrar, the company will receive a Certificate of Incorporation.

It is possible to change vital information for an incorporated business by requesting the appropriate documents. Although it is not common, businesses may elect to voluntarily dissolve, or change the name of their corporation for any reason. These documents may be found on several Internet sites or at the appropriate Registrar’s office.

The benefits of incorporating a business include the prominence of an incorporation, the security of the corporation if an owner retires or passes away, and the prospect of conducting business with large corporations. Another benefit of becoming incorporated is that the owners or shareholders cannot be legally held liable for business obligations. If a business contract is not honored, the creditor cannot take action against an individual involved with the company, unlike sole proprietorships and partnerships. This eliminates the worry that personal assets, such as land or vehicles, can be seized for business transactions.

Incorporating a business is something that every company should consider. Being aware of the requirements and obligations of incorporation is important before starting the process. Many sites on the Internet also offer insightful information for local provinces and their requirements regarding incorporation. After completing the process of registration, either federally or provincially, and receiving a Certificate of Incorporation, the company is free to act as a corporation and the owners can be certain about their professional status.