What is a Federal Non-Profit?
A federal non profit in Canada is an organization incorporated under the Canada Not-for-profit Corporations Act (NFP Act). This type of corporation operates with a primary mission to provide social, cultural, educational, or charitable benefits rather than to generate profits for its members. Federal non-profits can operate across all provinces and territories in Canada, providing them with a national scope.
Federal Non-Profits are established to pursue objectives that are not intended to yield financial profits for its members. Instead, any revenue generated is reinvested to support the organization’s goals and activities. These entities typically focus on areas such as education, charity, arts, culture, health, social services, and community development.
What are the benefits of a Federal Non Profit?
- Nationwide Operation: Federal incorporation allows non-profits to operate across Canada, facilitating broader outreach and impact.
- Legal Recognition: Incorporation provides legal recognition, enhancing credibility and trust among donors, partners, and the public.
- Limited Liability Protection: Members and directors are protected from personal liability for the organization’s financial obligations and legal issues.
- Tax Benefits: Federal non-profits can apply for charitable status with the Canada Revenue Agency (CRA), which may provide tax exemptions and eligibility to issue tax-deductible receipts for donations.
- Access to Funding: Incorporated non-profits may find it easier to access grants, donations, and other funding sources, as many funders require legal incorporation.
Who can start a Federal Non-Profit?
- A minimum of 3 directors are needed to operate a federal non profit, and must be above the age of 18;
- 25% of directors must be a Canadian Citizen or a Permanent Resident (PR).
Requirements:
- Minimum of 3 directors, an incorporator.
- The registered office address must be a physical address in Canada, P.O. Box address is not allowed. If you don’t have a local provincial address, we provide registered address and mail scanning service.
- A Federal Non-Profit, although registered federally, must also register in the province or territory where the corporation is conducting business.
- Purpose must have a non-profitable nature This can include providing social services, advancing education, promoting arts and culture, supporting health initiatives, advocating for special causes, or addressing community needs.
- If you have future charity intentions, you should know that registered charities must exclusively operate for charitable purposes as defined by the Income Tax act, such as relieving poverty, advancing education, promoting religion, or other purposes beneficial to the community.
Incorporation Steps:
Step 1. Name your corporation.
- It can be a numbered or a named corporation.
- If you want a numbered name, you must include one of the following terms: Association, Center, Centre, Fondation, Foundation, Institut, Institute or Society.
- Name should not cause confusion with any existing corporate names.
- Name should be distinctive.
- Suffixes like “Association”, “Club”, etc. are optional for a word name.
- A Federal NUANS report and name Pre-approval is required to register a Named Corporation.
- More of the name requirements you can find here.
Step 2. Select your articles of incorporation:
- Standard: Our standard articles include all standard clauses for a regular Non-Profit corporation to operate in Canada. You cannot add a personalized or custom clause.
- Custom: With this option you have the flexibility to include custom clauses to be inserted in the articles for your special needs.
Step 3. Establish the office address:
- The registered office address must be a physical address in Canada.
- You are allowed to have a legal land description address too but must have a P.O. Box connected to it.
- If you don’t have a local provincial address, we provide registered address and mail scanning service.
Step 4. Decide who will be a Director, and Incorporator.
Director – the head of the corporation. You will need a minimum of 3 directors to operate a Non-profit. 25% of directors must be a Canadian Citizen or a Permanent Resident (PR).
Incorporator – is the person under whose authority the corporation is created. Is not changeable.
Mandatory items to run a business.
- Minute book: consists of bylaws, share structure, minutes & other legal sections. Without it, a corporation is not complete.
- Initial Return: It’s a mandatory filing with Service Ontario for each new corporation. It has to be filed within 60 days of Incorporation. It confirms the details of the corporation. It is not a tax filing with CRA.
- Business Number: It is a unique identification of your business with the Canada Revenue Agency. It is required to register accounts like GST/HST, Payroll, Import/Export accounts.
- Corporate Tax ID: It is like a SIN number for a corporation.
- HST Registration, Harmonized Sales Tax: If you are selling goods and collecting HST you must have an HST account. every time a business incurs an expense – be it rent or paying for goods – it pays HST, if you set up the account, you can claim it back.
- Payroll Account: If you have employees, including yourself, you must set up a payroll account.
- Import/Export: If your goods or raw materials cross the Canadian border, you are required to clear customs using the Import/Export account.
- WSIB Account: It’s the Workplace Safety and Insurance Board registration. If your corporation has employees (except directors and shareholders) you must register for WSIB.
- Annual Return: A corporation must file its Annual Return with the Government every year to keep it active. You may add Annual Return to your package to avoid the risk of forgetting it. We will take care of it!
You can find out more information about annual return here:
How do we process the order?
- We start by verifying the payment and reviewing the order to ensure an error-free application.
- For named companies, we conduct name searches, make reservations, and obtain name approval.
- Next, we prepare the application and articles of incorporation.
- Before registering the corporation, we send a draft for a final check.
- Once approved, we register the corporation according to the chosen queue and promptly email all registration documents to the customer.
- Finally, we complete any additional services included in the package, such as initial returns and CRA accounts.
Timeline
The standard incorporation time for a Federal Non-Profit is ten business days. However, for an additional fee, we can expedite the process and complete it within just one business day. Please be aware that the turnaround time is until 3 p.m. EST.
The processing queue includes incorporation and emailing the Certificate, Articles and Electronic Minute Book (if included). The remaining processes in this package like Business Number, CRA programs accounts set up, WSIB registration, etc. are initiated after incorporation processes.
What will you receive?
After the registration is completed we will send you a Certificate and Articles of Incorporation, CRA Business Number, and an Electronic Bylaws (if included) by an email.
Why choose us?
- Our team of legal professionals and incorporation experts can establish your corporation within two business hours!
- Our online form offers the option to select, customize, and build your bundle according to your preferences. Simply complete the straightforward form on our website, and we’ll handle the rest.
- With a wealth of experience in business incorporation, we pride ourselves on guiding entrepreneurs through the process with expertise and precision.
- Online Business Registry is an official intermediary for Ontario Province and a registered member of Corporations Canada.
- Our team of legal professionals and incorporation experts can establish your corporation within two business hours!
- Our online form offers the option to select, customize, and build your bundle according to your preferences. Simply complete the straightforward form on our website, and we’ll handle the rest.
- With a wealth of experience in business incorporation, we pride ourselves on guiding entrepreneurs through the process with expertise and precision.
