Setting up a Business in Canada

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
One man business.
 
 
No minimum capital.
1 person.
 
 
Liable for all debts and obligations.
From CAD 32 to CAD 50.
Partnership
 
 
Personal investment
2 persons or more
 
 
Personally liable for all the debts and obligations of the company.
Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Limited liability partnership
 
 
Personal investment
2 persons and more
 
 
Liable for debts only to a certain extent.
Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
A Corporation is a private joint-stock company identified by Ltd or Inc or Co. Public or Private.
 
 
No minimum capital
Investing partners
 
 
Limited liability. Not liable for the debts, obligations or acts of the company.
Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
State owned company, the shares are public
 
 
No minimum capital.
Investing partners
 
 
Limited liability. Not liable for the debts, obligations or acts of the company..
Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Private company majority of shareholders Canadian
 
 
No minimum capital.
No minimum.
 
 
Limited liability. Not liable for the debts, obligations or acts of the company. Cannot sell shares or securities to the general public.
Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Cooperative
 
 
No minimum capital.
Managed by members
 
 
Limited liability.
Costs lower than for a State owned company or a Private company
Limited partnership
 
 
No minimum
persons financially involved
 
 
The liability of the silent partner to the company and creditors is limited to the amount of capital he invested.
Costs lower than for a State owned company or a Private company
 
Enterprises Federation
Canada Business
Businessman Information
Search a Company or a Financial Report
COCANADA
 

Business Setup Procedures

Administrative Formalities
Drawing up statutes is not subject to any particular obligation. However, every company must have a federal and provincial GST & HST tax number and must request this when registering. The registration of capital and statutes must be carried out in each province where the company does business, and it must be done within 30 days of starting business.
The Competent Organization
Registering a company can be done through the office of a notary or a lawyer. Each province has a provincial or regional office to make registering easier. Numbered companies are registered within 10 days. In Quebec this is the department of the Enterprise Registrar.
Time Necessary for Registration
The registration of a one man business takes a day. The registration of a company can take a week or more, depending on the research on the company name. Les entreprises à numéros are registered within 10 days. A company can be registered on-line, which speeds up the process.
 

Recovery Procedures

Principle
Going into receivership is possible when it is not possible to pay creditors all they are owed. First, it is advisable to call on a trustee. He will present an offer proposal to the company's creditors. Presenting a proposal stops all the legal procedures started or envisaged by ordinary creditors. It gives the company a certain leeway, allowing it to discuss its financial situation.
For further information about bankruptcy, consult the Office of the Superintendent of Bankruptcy Canada
Minimum Debt-to-Capital Ratio Triggering Liquidation
Proof of insolvency must be established by a trustee. See the database of the office of trustees.
Bankruptcy Laws
Bankruptcy and Insolvency Act.
Reorganization and Rehabilitation Laws
Act C-12, the act amending the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Programme Act and chapter 47 of the Statutes of Canada (2005), received royal approval on 14 December 2007. The date of enforcement has not yet been decided.
To see a summary of changes in legislation, click here.

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