Ontario Incorporation SErvice

Benefits of Incorporating Your Business:
1) Name Protection: Your corporation’s name is protected in Ontario, helping prevent other businesses from registering the same or a very similar name.
2) Limited Liability: A corporation is a separate legal entity from its owners. In most cases, shareholders are not personally responsible for the company’s debts or obligations.
3) Business Continuity: A corporation can continue operating even if ownership changes or one of the founders leaves the business.
4) Attracting Investors: Investors often prefer corporations because ownership can be transferred through shares and personal liability is limited.
5) Potential Tax Benefits: Corporations may qualify for lower tax rates and other tax planning opportunities, depending on their circumstances.
6) Access to Funding: Corporations can raise money by issuing shares or other securities to investors.
7) Professional Image: Incorporation can make your business appear more established and trustworthy to customers, suppliers, and partners.
8) Building Business Credit: A corporation can establish its own credit history, separate from the personal credit of its owners.
9) Employee Benefits: Corporations can offer attractive benefits such as stock options and retirement savings plans to help recruit and retain employees.

We can have your Ontario business incorporated in just 30 Minutes!

1. Choose a Business Name: When incorporating a business in Ontario, you can either choose a custom business name or use a numbered corporation name assigned by the government.

If you choose a custom name, it must be unique and different from other registered business names in Ontario. A NUANS Name Search Report is required for most named corporations and is available through our incorporation packages.

Some corporation types must follow specific naming rules set by government authorities. If your proposed name is unavailable or does not meet the requirements, our team will help you find a suitable alternative.

2. Appoint Directors, Officers, and Shareholders: To register a corporation in Ontario, you must identify the people involved in the business:

Incorporator – The person who creates the corporation.
Director – Responsible for managing the corporation.
Officer – Handles the day-to-day operations of the business.
Shareholder – Owns shares in the corporation.

One person can serve as the incorporator, director, officer, and shareholder. However, Not-for-Profit Corporations and Co-operatives generally require at least three directors.

3. Provide a Registered Office Address: Every Ontario corporation must have a registered office address in Ontario. This can be a residential or commercial address where official government correspondence can be received.

If you do not have an Ontario address available, Online Business Registry offers a Registered Office Address and Mail Forwarding Service for registration purposes.

4. File Your Initial Return: After your Ontario corporation is incorporated, you must file an Initial Return within 60 days.

Failing to file this return can result in your corporation becoming non-compliant with the Ontario Corporate Registry. Continued non-compliance may eventually lead to the corporation being dissolved by the government.

No, there are no residency requirements to incorporate in Ontario. Directors may be from other domestic or foreign jurisdictions. Incorporators must be individuals or other Ontario businesses.

The main difference lies in how they handle the profits and their primary objectives.

For-Profit Organizations: These are businesses established with the primary intent of generating profits for the business owner or their shareholders. The main focus isn’t necessarily societal or community benefits, but rather earning a profit from goods sold or services provided.
Not-For-Profit Organizations: These organizations exist to fulfill an owner’s organizational objectives and are not primarily focused on generating profits. They can operate for social welfare, civic improvement, sport, recreation, or any other purpose except profit. They do not have shareholders or owners who receive dividends or financial distributions.

Simplified: An operating company does things, and a holding company owns things.

Operating Company: It is a company that operates its business activity. It undertakes day-to-day business activities and generates revenue and has assets and liabilities related to regular operations. It may then provide manufacturing products or rendering services, employing staff, etc.
Holding Company: It is a company holding investment assets in other companies and whose purpose is to own as well as control the investments. It does not operate any active business but holds and manages the assets from shares, real estate, intellectual property, and other investments in their possession. — Example: Here, the holding company which owns a subsidiary company will become the shareholder of that particular operating company.

A Personal Real Estate Corporation (PREC) is a corporation that real estate professionals in Ontario can form to conduct their business. In this arrangement, the real estate professional becomes the “controlling shareholder” of the corporation, giving them control over the corporation and its activities.

Benefits of Forming a PREC: Forming a PREC can offer financial benefits to a real estate professional. It provides more flexibility in income management, which could potentially lead to tax savings. However, the specific benefits can vary depending on the individual’s business situation.

Function of a PREC: The primary function of a PREC is to provide the services of the real estate professional, who is the main shareholder, on behalf of the brokerage they work for. It’s crucial to note that a PREC cannot operate independently like a brokerage.

A professional corporation in Ontario is an option for regulated professionals such as doctors, lawyers, and others. This type of corporation is subject to specific rules and regulations during its formation and operation, which are overseen by the relevant governing bodies. Incorporation does not absolve the professional from personal liability for malpractice, meaning they remain accountable for their professional actions. While the corporation’s activities are limited to the practice of its profession, it is permitted to undertake tasks related to this practice. For differences between a professional and standard corporation.

Ontario cooperatives are a type of business model where the organization is owned and run by its members. They operate based on democratic principles, where each member has an equal say in decision-making. They can serve various functions such as consumer services, producer services, community development, education, sustainability, and technology innovation. The specific use case for a cooperative depends on the needs and goals of its members. An example of a cooperative is MEC (Mountain Equipment Co-op). They are a retail cooperative that sells outdoor recreation gear and clothing exclusively to its members.

Yes, non-residents and foreign nationals can register and incorporate a business in Ontario. There are no Canadian citizenship or residency requirements to own shares in an Ontario corporation.

However, depending on the type of business and its activities, additional requirements may apply, such as obtaining a business address, tax accounts, licenses, permits, or other registrations. Non-residents should also consider seeking professional legal and tax advice to ensure compliance with Canadian laws and regulations.

If you need help incorporating a business in Ontario as a non-resident, our team can guide you through the process from start to finish.