Ontario Co-Op with Share Capital

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Ontario Co-op with Share Capital

What is an Ontario Co-Op?

It is a specific type of cooperative enterprise that is incorporated under the Co-operative Corporations Act of Ontario and issues shares to its members. It can raise funds by offering shares to its members or outside investors. Like all cooperatives, an Ontario co-op with a share capital is based on cooperative principles, including democratic control, voluntary membership, member economic participation, autonomy and independence, education, and concern for the community.

What are the benefits of the Co-Op in Ontario?

  • Many cooperatives in Ontario are formed to provide access to essential goods and services that may be otherwise unavailable or unaffordable in the market. Examples include consumer cooperatives (e.g., grocery stores, housing cooperatives), agricultural cooperatives, and worker cooperatives.
  • Cooperatives contribute to community development by supporting local economies, creating jobs, and investing in community projects and initiatives. They often prioritize sustainability and social responsibility, benefiting the broader community.
  • Cooperatives enable members to pool resources, share risks, and support each other in achieving common goals. This collective approach can enhance resilience and mitigate individual financial or operational risks.

Requirements:

  • The incorporation of a cooperative typically requires a minimum number of founding members who come together to establish the cooperative. The exact number of founding members may vary depending on provincial laws, but it is common for cooperatives to require at least three to five founding members.
  • All the founding members should be above 18 years old.
  • A registered office address must be a physical address in Ontario. If you don’t have a local provincial address, we provide registered address and mail scanning service:
  • There are no residency requirements for directors.

What are the incorporation steps?

Step 1. Name your corporation.

  • Generally a name should have two elements: distinctive and descriptive. The distinctive element can’t be a common English word, it has to be unique or made up words while descriptive elements can be common English words. An example is “Mike Construction”. In this name ‘Mike’ is the distinctive/unique element; ‘Construction’ is the descriptive element.
  • The corporate name of a co-operative shall include the word “co-operative” in English or “cooperative” in French as part thereof. The word “co-operative” may be abbreviated to “co-op” in English or “coop” in French.
  • An Ontario NUANS Reservation Report is required. You can obtain a NUANS Report here.
Other recommended service providers that are registered NUANS members: 
 
 
For further details on the regulations for naming a corporation, please refer to this link:

Step 2. Select your articles of incorporation:

This step establishes the structure of your corporation. Choose the right share structure:

  • Basic: one with unlimited common shares with no specific share class.
  • Standard: common shares with class A voting and class B non-voting.
  • Custom: this share structure allows to categorize shares into many types such as common, preferred, voting, non-voting etc.

Step 3. Establish the office address.

  • Registered office address must be a physical address in Ontario.
  • Mailing address can be a PO BOX.
  • 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. Appoint a Director.

  • Director – is the decision maker of a corporation who takes administrative decisions and has the power to make changes in the corporation and remove/add another director.
  • In Ontario, a cooperative (Co-Op) is typically required to have a minimum of three directors. The specifics can vary depending on the cooperative’s bylaws and the requirements set forth in the Ontario Co-operative Corporations Act (CCA).
  • The directors must be 18 years and above.
  • Can be a Canadian Citizen, PR or Non-Canadian Citizen.
  • Should not be in a status of bankruptcy.
  • 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:

Government of Canada

How do we process the order?

  1. We start by verifying the payment and reviewing the order to ensure an error-free application.
  2. For named companies, we conduct name searches, make reservations, and obtain name approval.
  3. Next, we prepare the application and articles of incorporation.
  4. Before registering the corporation, we send a draft for a final check.
  5. Once approved, we register the corporation according to the chosen queue and promptly email all registration documents to the customer.
  6. Finally, we complete any additional services included in the package, such as initial returns and CRA accounts.

Timeline

The standard incorporation time for an Ontario Co-Op is ten business days. However, for an additional fee, we can expedite the process and complete it within just two business hours. 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 and an Electronic Minute Book (if included) by an email.

Why choose us?

  • 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 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.

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