Company Formation Services in Canada
How do you start a business in Canada? Learn the best and legally acceptable ways to register and start a business in Canada through Helpline Canada.
- Helpline Group will help you choose the best company structure in Canada
- Helpline Group will help you set-up the business as you require in Canada
- Helpline Group will support you in documentation and filing of required paperwork in Canada
- Helpline Group will help you in setting up tax and licenses required for your business in Canada
Learn how you can proceed to register a company in Canada with our professional company formation services. Check out our comprehensive portfolio.
Canada has vast business opportunities. As of now, the industrial and business portfolio is diversified into various industrial sectors and areas. However, you must understand what type of businesses are allowed in Canada and how you may proceed with company formation in Canada to suit your requirements and goals. Helpline Group has been working with many businesses and foreign investors in setting up their businesses in Canada. We take your company formation requirements in Canada right from the documentation process to legal registration and setting up licenses and taxation procedures in Canada.
Assurance on Reliability and Quality
Established in 1998, Helpline Group has achieved widespread presence across the world in the past ~25 years. With its head office located in Dubai, we serve our customers from across the world through out global offices and partner networks.
Finding a Partner in Canada
Canada follows strict corporate rules, and one must understand the legal complexities associated with company formation in Canada. You shall need expert guidance on understanding these requirements and following these requirements to the core. In most case, you shall require a Canadian partner to set up a business in Canada. Since this is a legal and mandatory requirement in often cases, you must work with Helpline Group to understand such requirements in detail. Our executives in Canada will work with you to understand your requirements and solve them.
Legal Structures of the Company in Canada
In recent years, Canada has become one of the most preferred destinations across the world for setting up a new business or enterprise. There are certain types of permissible business entities that are used for formation of new companies and helps to ensure greater heights in their professional journey. Some of the business entities are as follows
- Sole Proprietorship
- Partnership Firm
- General Partnership Firm
- Limited Partnership
- Limited Liability Partnership
- Branch Office
- Corporation
- Joint Venture
- Cooperatives
Sole Partnership
A sole proprietorship in Canada is useful for people with single ownership companies. One person owns a Sole proprietorship in Canada, and the person is solely responsible for all activities conducted by the company. The liability of such a business structure is unlimited, and the person shall be responsible for all benefits, losses, or obligations of the business. Although this is the least expensive way of starting a business in Canada, this may come with many risks and implications for an individual. One should speak to Helpline Group regarding the legal requirements, implications and issues associated with a Sole proprietorship company in Canada.
Partnership Firm
A partnership is created between two or more people. A partnership is carried out on the basis of a contract or an agreement between the partners engaged in the business. Parties in a partnership may pool their resources and investments as per the requirements of the partnership business. There are different partnership models available in Canada.
General Partnership Firm
In a general partnership firm, two or more partners are required. Partners’ roles and responsibilities are defined in the partnership agreement. All such general partnership agreements are valid for five years. General partnership companies are the easiest company form in Canada, but partners of a general partnership have unlimited liability towards the business. Hence, one must carefully evaluate these conditions before making a decision.
Limited Partnership
In a limited partnership, one general partner and one limited partner are required. The number of partners can be two or more. General partners have unlimited liability towards the business, but limited partners’ liability is only limited to the extent of their investment in the business. Also known as a silent partner, a limited partner shall not bear any managerial responsibility, but he may contribute to business decisions and must be accepted by the general partners in the business. Once again, one must evaluate the benefits and issues of such a set-up before making a decision.
Limited Liability Partnership
This is the most popular form of business in Canada, which requires two or more partners. The biggest advantage is the limited liability partners have in such business forms where partners do not have to bear the liabilities of the business, but it is only extended up to the personal contributions of partners. However, different provinces have different rules concerning partnerships, and one must consult with Helpline Group to make sure you are making the right choice.
Branch Offices
Foreign companies may establish branch offices in Canada according to legal licenses issued by the government of Canada. Branch offices must be registered under the provincial government where it is operating. A local agent is usually hired to carry out activities in the branch office in Canada. While Branch offices have tax benefits in Canada, the parent company is directly liable for all activities conducted by a branch office in Canada. On the other hand, the permissible business activities for branch offices may differ from one province to another. Hence, Helpline Group can guide you through these activities and set up a branch office with ease.
Corporation
A corporation is a desperate legal entity as per the Canadian law. A corporation is considered a legal entity, which means the corporation can engage in every activity a person engages. The liabilities of a corporation is very much limited towards the total investment it has amassed for the business. There are different requirements in terms of tax, management, shares and so on. Registration can be done on federal or provincial levels. While Federal level registration is recognised everywhere, provincial level registration of corporations come with their own limitations. There are different tax benefits and deductions that different type of corporations may avail in Canada. Contact Helpline Group for more information on setting up a corporation in Canada.
Joint Venture
Joint ventures are formed between two or more companies to accomplish a common goal. While all partners contribute to the joint venture, their contributions may differ depending on the agreement and joint venture terms and conditions. While there are no legal practices associated with joint ventures, the law recognises legal agreements and contracts. However, all joint ventures are required act as per the Act of Investment in Canada. Approval of joint ventures may depend on the possible benefits the country may receive from such point ventures. Different provinces also have different rules regarding such activities. Contact Helpline Group for more information on setting up and running a joint venture in Canada.
Cooperatives
Cooperatives are another type of incorporation beyond the level of partnership. In a cooperative, people work together to satisfy a common need or goal. Making a product, service delivery, charity and such come under cooperatives in Canada. Canada recognises four type of cooperatives – consumer cooperative, producer cooperative, worker cooperative and multi-stakeholder. Such cooperatives are managed and operated in a democratic manner, and members can choose who manages the cooperative through voting decisions. There are different rules and regulations concerning management and profit distribution in cooperatives in Canada. Contact Helpline Group for more information on managing and setting up cooperatives in Canada.
Other Factors You Should Consider for Canada Business Formation
Tax System
Tax systems in Canada are very complex. There are different formalities and requirements concerning taxation in Canada, and it may change for businesses depending on the area of operation in Canada. Income tax is levied for 38% of personal come, which is applicable to both resident and non-residents in Canada. Different businesses attract different taxes in different provinces. Contact Helpline Group for more information on tax requirements in Canada.
Visa System
Visa requirements change from country to country. When you are setting up a business in Canada, the first issue you need to consider is obtaining a suitable visa for your activities. For example, you are not permitted to carry out business activities on a visiting visa – you shall need a business or investor visa for such requirements in Canada. We can help you get your visa requirements carried out in Canada through Helpline Group. We handle all visa requirements, including entrepreneurs’ visa, employee visa and visa for managers and so on.
Importing System
As a business, you may have different requirements for importing and exporting goods from and to Canada. You shall need different licensing and registration to engage in importing and exporting activities in Canada, even if you have appropriate licenses for carrying out business activities in Canada. There may be additional issues to consider in the type of products allowed to import or export, and business-related requirements or restrictions in importing and exporting goods. Helpline Group can guide you through these requirements in Canada.
