Operating a business in Canada is much like operating a business anywhere. You will need to follow all laws and regulations and be in compliance with any laws pertaining to your business i.e. food and health. Once deciding that you want to establish a business in Canada, the next thing you must do is figure out what kind of business to set up. If you choose incorporation Canada, you will have two options for incorporating.
What Are Your Options?
You first option for incorporating a business in Canada is to incorporate a subsidiary. Its important to note that subsidiaries although incorporated do not fall under the same tax laws or enjoy the benefits that a regular incorporation in Canada might be able to enjoy. Because of foreign tax purposes a subsidiary may not be you best option if deciding to operate a business in Canada.
Your second option is a traditional incorporation under Canadian regulations. If you decide to incorporate your business the great country of Canada then your next decision will be whether or not to incorporate through a province or with the federal government. Should you choose to incorporate your business in Canada with the federal government, then you will be granted the ability to conduct business all throughout Canadian territories. You will still fall under provincial regulations, and depending upon which province you live in you may have to pay an initial license or registration fee. Once doing so you will be able to conduct business in any province under the corporate name you filed in your incorporation documents. The other alternative is to incorporate you company through your home province. The only reason you might want to elect to file your incorporation federally is that, if you do so provincially you may not be able to operate in all territories, especially if another corporation has been established with your same name in a specific province.
One glaring disadvantage to filing your incorporating federally would be the need to be a resident Canadian. Not only do you have to pay for whatever menial fees to process your paperwork, but under the Canada Business Corporation Act this stipulation is mandatory. The downside to incorporating provincially is that, besides not being able to operate across provinces, should you decide too, you will need to incorporate yourself in that province as well or federally to bypass this problem again in the future. Another downside to provincial filing is that each time you file in different province, you are still required to pay the fees for license and registration within that province.
Operating a business in Canada is very feasible. Once you decide upon what type of incorporation filing to implement your almost all set. Depending upon the decision you have made you can fill out the proper documents and pay the necessary fees to have you official incorporation license. Remember the best way to do it for tax purpose and convenience is to become a resident Canadian and federal you incpropatinon paper work federally.
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