A corporation in Canada is its own legal entity, which separates it from its shareholders. It has its own rights and obligations. Also, it enjoys certain benefits such as different tax calculations and deductions. When you are ready to set up a corporation, you need to fill out articles of incorporation at the federal or province level.
The company name you choose must be unique, as per the incorporation law. Once you have successfully registered as an incorporated company, the shareholders have a choice to select the director(s) to look after their business.
You can incorporate the company in different ways, depending on the type of business you embrace.
There are different types of business corporations in Canada that can be set up, depending on the nature of the business.
As the name suggests, this organization must be private and consists of shareholders and director(s). To get it registered, the company must meet the conditions laid down by Canada Corporation.
Let’s learn about some of those.
A change in the share of ownership can possibly affect the corporation and can be assessed to be ceased as CCPC if it is not done as per the rules laid down.
The CCPC is one of the most advantageous forms of small business from a tax standpoint for its owner. In addition to the small business tax deduction, you can avail yourself of investment tax credits, exemptions from capital gains for the sale of shares and tax credits for research and development.
Shares that are listed on the Canadian stock market are defined as a public corporation and are regulated by its body.
As you can imagine, a corporation that doesn't belong to the above categories is termed as an “other corporation”.
Before you start the process of registration, it is suggested you have the following things handy.
You can visit the Canada Corporation website at www.ic.gc.ca ,or you can approach your province office. Another alternative is to contact private law firms.