What is a Federal Registered charity?
A federal registered charity in Canada is a non-profit organization that has been granted charitable status by the Canada Revenue Agency (CRA).
This designation allows the organization to issue tax-deductible receipts for donations, providing significant tax benefits to donors. Additionally, registered charities enjoy certain tax exemptions and are subject to specific regulatory requirements.
What are the benefits of Federal Registered Charity?
- Tax Advantages:
- For the Charity: Exemption from income tax on most types of income.
- For Donors: The ability to issue tax-deductible receipts, making donations more attractive.
- Increased Credibility: Registration with the CRA enhances the organization’s credibility, making it more likely to receive donations and grants.
- Access to Funding: Many funding sources, including government grants and private foundations, prefer or require applicants to have registered charity status.
- Public Trust: Being listed on the CRA’s Charities Listing increases public trust and transparency.
- Fundraising Opportunities: The ability to issue tax receipts can significantly boost fundraising efforts.
Who can start a Federal Registered Charity?
- Minimum 3 individuals above the age of 18;
- All directors must be Canadian citizens or Permanent Residents (PR).
Requirements:
- Purpose: 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.
- Minimum 3 directors, and an incorporator.
- The registered office address must be a physical address in Canada. If you don’t have a local provincial address, we provide registered address and mail scanning service.
- A Federal corporation, although registered federally, must also register in the province or territory where the corporation is conducting business.
Incorporation Steps:
Step 1. Name your corporation.
A Registered Charity can’t be a numbered company, it must have a name. There are following rules applied for a name:
- Name should not be deceptively similar.
- Name should be distinctive.
- Distinctive elements “Association”, “Club”, etc. are optional.
- 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. Provide the Aim, Purpose and Activities:
To qualify as a charity, the purposes should fall into four categories:
- Relief of poverty.
- Advancement of education.
- Advancement of religion.
- Other purposes beneficial to the community.
More information about charitable purposes you can find here.
Step 3. 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 4. 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 5. 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 Registered Charity is ten business days. However, for an additional fee, we can expedite the process and complete it within 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, CRA Charity Account, 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.
