Each city/province will have a slightly different way of incorporating business. Here is the guide for entrepreneurs looking to lay the foundation in British Columbia, Canada. This is definitely a helpful guide you need to know. There are five (5) steps to follow:
- Confirm your business structure
You will have to know different business structures to consider before incorporating your business. Three (3) common types of business structure in British Columbia:
- Sole proprietorship
- Partnership
- Corporation
It’s best that you get advice from a chartered accountant or lawyer before deciding to set up your business, as there are requirements for you to submit to qualify, such as setting up minutes or records books, creating a central securities register, issuing share certificates, and a transparency register by identifying your company’s significant individual(s).
- Request and reserve a name
You have to pay $30 to request and reserve your business name and ensure your business is confirmed, not in conflict with or used by other corporations, and it can help customers identify your business.
You will not need to request and reserve the name using the incorporation number.
The name processing usually takes 7 to 14 days to complete. Remember to complete the incorporation before the name reserve expires, which is 56 days after acceptance.
- Establish the company’s articles
The articles outline the company’s rules for shareholders, directors, and officers, and form part of the official records.
To avoid mistakes, ask a professional to handle it for you:
- Benefit companies must have a statement defining their public benefits and commitments to operate sustainably. Directors of a benefit company must balance the company’s interests with the public duties.
- Community contribution companies need to state their primary community purposes.
- Unlimited liability companies must include this in the articles: “The shareholders of this company are jointly and severally liable to satisfy the debts and liabilities of this company to the extent provided in section 51.3 of the Business Corporations Act.” It also appears on the Notice of Articles and all share certificates.
- Prepare an incorporation agreement
When forming a company, each incorporator must sign an incorporation agreement. Incorporators usually become the company’s first shareholders and directors.
The agreement, kept in the company’s records, is not required to be filed online and must include:
- Each incorporator’s commitment to take one or more company shares
- Their signature, full name, and signing date
- The number and class of shares each is taking
Banks may request this document when opening an account.
Community contribution companies must have at least three directors who align with the company’s community purpose.
- Apply to incorporate
- Most companies apply through Corporate online and pay a $350 fee, $1000 fee for ULC.
- Benefit companies will submit through the BC Registry application and pay a $350 fee.
- Extraprovincial (out-of-province) corporations: BC businesses that want to operate outside BC must complete extraprovincial business registration.
You will need a name request number to incorporate. If you can’t register online, fill out the paper form and have a law firm or registry agent submit it.
After that, you will receive by email or mail:
- The original Certificate of Incorporation
- Certified copies of the incorporation
- Application and Notice of Articles
- A cover sheet with your incorporation and business numbers
Keep these documents in your company records because the incorporation number is needed for future filings.
Note: Incorporation with the province differs from getting a municipal business license. Check local requirements for licensing.
Reaching Platform Expand for help
It is not too difficult if you have a professional service that incorporates business with you. Contact Platform Expand, we are ready to help you.