Are you ready to incorporate your business and take things to the next level? If the answer is ‘yes’ then this article is for you. If you have any further questions, make sure to book a FREE consultations with our experts.
According to the CRA, Federal incorporation of your business is a 4-Step Process.
- Name your corporation
It is mandatory for every incorporated business to have a name that legally identifies it. This is defined as a corporate name. Your corporation can have two types of corporate names:
- Word name, comprised of letters and symbols
- Numbered name – 12345678 Canada Inc., as an example.
- Create your articles of incorporation
In this step, you have to establish the structure of your corporation.
The CRA recommends Basic Incorporation for small, private businesses. This pre-packaged incorporation option does not include any guess-work. Your corporation will have the following:
- No more than 10 directors
- One or two classes of shares
- A set of pre-determined articles of incorporation (these can be changed later, according to your needs)
- A pre-assigned and numbered corporate name.
You can also decide to customize your articles of incorporation to suit your specific business needs. In this case, you specify the following in Custom Incorporation:
- The name of your corporation
- The structure of your shares
- The number of directors in your corporation
- Any restrictions you might want to set for your business or business activities
- Any other provisions.
- Establish the initial registered office address and first board of directors
It is mandatory for every incorporated business to have a registered office address and a board of directors. All your corporate records and official documents are supposed to be kept in this office address. A board of directors must also be selected. It is mandatory to ensure that your Directors meet the eligibility criteria of the CRA.
- Pay the fee
You can pay the fee through CRA’s Online Filing Centre.
