Understanding Articles of Incorporation: A Key Step in Registering Your Business
Starting up is always a thrilling experience but comes with required legal steps to follow. One of the first and most important steps is incorporating your business by filing the Articles of Incorporation. This document states your company is incorporated and contains significant information about it. Whether you are opening up shop in Ontario or anywhere else in Canada, it is essential to understand this process to make it easier to register.
What are Articles of Incorporation?
If you are wondering what articles of incorporation are, they are official legal documents filed with a government agency to establish a corporation. These documents include important details, such as:
- The firm’s name
- The registered office address
- The names and addresses of the directors
- The number and type of shares the company is authorized to issue
- The company’s mission (optional but recommended)
By filing your Articles of Incorporation, you officially create your company as a legal entity, following federal or provincial regulations.
Incorporating your company has many benefits, including:
A few major changes regarding how the corporate key is granted and used within the Ontario Business Registry have been announced by the Ontario government. Here is the rundown on what you need to know:
1. Legal Protection
A corporation is a legal entity distinct from its owners. This distinction between corporation and owner limits personal liability, so your personal assets cannot be tapped for business debts and lawsuits.
2. Credibility and Professionalism
An incorporated company looks more professional to potential clients, partners, and investors than an unincorporated business or proprietorship.
3. Simplified Access to Capital
Incorporated business is able to easily raise funds through the issuance of shares, obtaining investors, and obtaining loans compared to non-incorporated business.
4. Business Continuity
While the sole proprietorships will dissolve at the owner’s death, the corporation will live on forever and offer stability in the long term.
Filing Articles of Incorporation in Canada
Incorporation in Canada is either at the provincial or the federal level. The choice between the two is based on the needs of your business.
Federal Incorporation (Corporation Canada)
If you incorporate federally through Corporation Canada, your business is able to conduct business across the country with increased name protection. You are still required to register in provinces where you conduct business.
Provincial Incorporation (Ontario Articles of Incorporation & Others)
If your business operates primarily within one specific province, provincial-level incorporation would be the better choice. Using the example of someone establishing a shop in the province of Ontario, that person would need to make filings of Ontario Articles of Incorporation with the Ontario Business Registry.
How to Get Articles of Incorporation
Here are the essential steps to register your corporation successfully:
1. Choose a Business Name
Your company name not only needs to stand out but not duplicate existing businesses. You can conduct a name search from the NUANS (Newly Upgraded Automated Name Search) report to find out if it is available. Online Business Registry offers a new Instant NUANS Report service where you can get your report and reserve the name within seconds.
2. Select Your Business Structure
Decide whether your business will be
- Private Corporation
- Public Corporation
- Charitable Corporation
3. Prepare and File the Articles of Incorporation
You can complete this process either through the on-line business registry or paper application. The document should include:
- Corporate name
- Registered Office Address
- Share structure
- Directors’ information
4. Remit the Mandatory Fees
Fees of incorporation are also jurisdiction-dependent. Corporation Canada’s federal incorporation is approximately $200 if done online, while provincial fees are not the same.
5. Obtain Additional Licenses and Permits
Once you incorporate, check to see if you need additional business licences, industry licences, or GST/HST registration.
Online Business Registry: Simple Way
Many jurisdictions offer an online business registry to streamline the incorporation process. These platforms allow business owners to:
- File incorporation documents electronically
- Search for existing business names
- Retrieve corporate records quickly
For example, businesses filing Ontario Articles of Incorporation can use Ontario’s online business registry for quick and efficient processing.
Common Mistakes to Avoid While Filing Articles of Incorporation
Here are the essential steps to register your corporation successfully:
1. Choosing a Name Without NUANS Search
Failure to conduct a name search can lead to refusal of application or legal conflicts with existing businesses.
2. Omitting Key Information
Ensure that the details required to process the transaction are provided properly, including director names and share structures, to avoid delays.
3. Unclear Definition of Share Structure
A properly defined share structure is needed to issue ownership shares, to raise capital, and to safeguard shareholder rights.
4. Provincial Registration Hopping
If you are registering federally but will be operating in one particular province, make sure to register at the provincial level as well to continue to remain compliant.
Frequently Asked Questions
Where is the certificate number on articles of incorporation Canada?
The certificate number on Articles of Incorporation in Canada is typically found on the Certificate of Incorporation issued by Corporation Canada (for federal incorporations) or the provincial registry (for provincial incorporations). It is usually located at the top of the document and is labeled as the Corporation Number or Certificate Number.
How to obtain Articles of Incorporation Ontario?
Go to the Online Business Registry website. In the upper menu select option “ Ontario Incorporation “, after that select the type of the company you want to incorporate.
What does Articles of Incorporation look like?
Ontario Articles of Incorporation
Federal Articles of Incorporation
How to get a copy of Articles of Incorporation Ontario?
Visit Online Business Registry website. From the upper menu select the option “Search” and then “Certificate & Article”. After you complete the payment, we will email the Articles of Incorporation to you.
How to update Articles of Incorporation?
Go to the Online Business Registry website. From the upper menu bar select the option “Change”. After that select which update you would like to do.
Conclusion
Filing Articles of Incorporation is the fundamental process of lawfully establishing your company. Whether you are incorporating at the federal level with Corporation Canada or filing Ontario Articles of Incorporation with Service Ontario, understanding the process ensures compliance and effective performance.
Registration with the help of an Online Business Registry simplifies the process so that you can register and start working sooner. With the proper procedures and the lack of pitfalls, you can incorporate your corporation to succeed in the long run. If you are prepared to incorporate, start by learning the requirements in your area and utilizing the resources provided on the Internet to make it happen easily. Questions? Contact us via telephone at 416-628-9349 and we will guide you on how to incorporate your business in Canada.
