How can I Start and Register a company in Canada?

Canada is ranked number two in ease of starting a business by the World Bank. This is largely due to the small number of procedure required and also the limited amount of time and cost needed to register a business. Here is this post, we discuss the process to Start and Register a company in Canada.

These are the Steps to Start and Register a company in Canada

Step 1: Make Sure You Are Your Ready for Entrepreneurship

It is easy to come up with an idea to start a business, but not so easy to actually launch and build a profitable business. Eighty per cent of businesses fail in the first five years. Before you take the risk of starting a business, make sure:

That you are ready to start your own company

Questions to consider before starting your own business:

• Do you have existing experience and contacts that will help you build your customer base?
• Do you have the financial resources (savings or part-time work outside of your business) to get you through the tough start-up phase?
• Will your family support you?
• Are you comfortable with sales?
• Can you evaluate yourself honestly?
• Do you have business experience?

That you have assessed your business readiness

Step 2: Evaluate Your Options

When starting a business, there are important differences between starting from scratch, buying a privately owned business and buying a franchise.

Step 3: Prepare a Business Plan

You should not skip this important step … even if it means that you just jot your ideas down on scraps of paper or a napkin!

Step 4: Register a Company or Business

Procedure for registration in Canada

Step 1: Choose a business entity that suits your business needs. In Canada, there are 4 main types of business entities. The business entities are:

• Partnership
• Corporation, most commonly used
• Cooperative
• Sole proprietorship

Below are some pertinent factors to consider for choosing an entity:

Step 2: Register a company or business with Industry Canada.

You can register your business name via the online filing center. Documents required for filing are articles of incorporation, provincial registration form, and first board of directors and registered address.

On successful application, a business number for your company will be sent to you. You must then register your business with provincial or territorial government if required.

Step 3: Register for VAT

All private corporations with turnover of over CAD30,000 per quarter must register for VAT. This is done at the Canada Revenue Agency with your company’s business number. Social insurance number of one of the owner/director is also required for registration.

Step 4: Apply for permits and licenses (if applicable)

Some industries in Canada such as construction, healthcare and import/export are regulated and require permits before operation. You can look up the licenses and permits you require on BizPal by searching keywords of related activities.