How to Incorporate Your BusinessBrian Jang ON February 1, 2016
Ready to take your business to the next level? It might make sense to start thinking about incorporating your business. Incorporation has a bonanza of benefits, from tax advantages and increased credibility to limited personal liability and transferable ownership. While it might seem that forming a business is a confusing and stressful process, it really doesn’t have to be. Here are some general steps to help you along the way for incorporation.
Step 1: Choose a Name for Your Business
The first step you will need to take is to choose your business name. An effective name should reflect what you do, speak to your audience, and be easily distinguishable from the names of other incorporated companies. Once you have created the name for your business, it is important to search if it is available. You will also want to brainstorm a few other names in case your first choice is already taken. The name you ultimately intend to use must be approved and reserved by the provincial Corporate Registry before you can register your company.
Step 2: Prepare an Incorporation Agreement
A business must enter into an incorporation agreement before it be can formed. According to the Business Corporations Act, an incorporator must take a least one share of the company. The agreement must also be signed and dated by each incorporator. Lastly, the finalized contact must be kept by the company as part of the business’s records.
Step 3: Establish a Set of Articles
Articles are detailed rules and regulations that govern the relationship between the corporation and its shareholders, directors, and officers. Every company is required to have a set of articles that must be signed by each of the incorporators. Similar to an incorporation agreement, the articles are kept on file by the company.
Step 4: File an Incorporation Application
The next step is to file an Incorporation Application with the Corporate Registry. This process needs to be completed electronically by visiting Corporate Online. Once you have finished completing and filing the online application form, you will be assigned an incorporation number and instructed to create a password for the business.
Step 5: Receive Your Incorporation Documents
Once your company is incorporated, the Corporate Registry will send you your incorporation documents. You will receive the original Certificate of Incorporation, a certified copy of the Incorporation Application, and a certified copy of the Notice of Articles. These documents must also be kept on file by the company.
Following the above mentioned steps should help remove some of the confusion and mystery from incorporation. If you are thinking about incorporating your business, it is always a good idea to consult an accountant to ensure that incorporation is the right move for you.
For a free consultation, contact BCJ Group, Chartered Professional Accountants today!