2.1 In Canada to invest in registered companies need to handle the formalities
- Canadian definition of a business: The business is established under the laws of the Canadian federal or provincial government and is currently operating in Canada; other than the above, businesses operating in Canada that meet the following two conditions may also be considered Canadian enterprise:
Can generate taxes, and profits;
Canadian citizen, permanent resident, or Canadian business as defined above, owns the majority of the voting and proprietorship interests in the business; the organization or business is established under the laws of the Canadian federal or provincial government.
- Scope of business registration management: From the point of view of Canada as a whole, the scope of business registration management includes the following forms of business organizations: sole proprietorships, partnerships, joint-stock companies that do not distinguish between unlimited liability companies and joint stock companies, branches established by foreign companies, Joint venture.
- Registrar of Companies: The establishment of a company as required by the federal Companies Act requires registration with the Corporate Affairs Bureau of Consumer and Corporate Affairs Canada. For example, if a company is incorporated under the Corporations Act of each province, it will go through the formalities of registration with provincial registration authorities, such as the Ministry of Finance and Corporate Relations. In general, most enterprises are mainly registered in the provincial registration authority.
- Enterprise registration conditions: General requirements for business registration conditions are: business name, registered capital, business scope, mode of operation, which is similar to the registration of enterprises in China meet the conditions. Specifically:
- Company Name: You can use the letter or number as the company name. Names should not be the same as the names of other companies or be confused with the names of other companies. The words may not be banned. Names such as “limited”, “stock company” and their abbreviations must be added to the name. A branch of a foreign company in Canada may add “Canada” to its name to distinguish it from its parent company.
- Registered capital: Canada generally does not require the minimum registered capital. In addition to financial companies, no savings deposit requirements. Available cash, property investment, cash subscription of shares, the subscription value to be determined by the board of directors.
- Business scope and mode of operation
The business scope of enterprises is generally not restricted except for drugs, firearms and television, radio, finance, press and publication, aviation and so on. Mode of operation is generally unlimited.
- Registration procedures
- Select the company name, and the relevant departments of the registration authority to confirm that the name is valid. In order to avoid the choice of the name does not apply, can provide two names to choose from, this service is subject to a fee.
- The promoters sign the articles of association, the articles of association and the rules of the company and its members are binding. The articles of association must include the company name, share structure, directors, business scope, the rights of the members of the company, the way the company operates, and the powers and responsibilities of the directors of the company. The bye-laws do not contain any provisions that conflict with the Companies Act.
- Fill in the application form. Indicate the company’s registered address, the name and address of the member of the board of directors.
- To pay for registration of various documents and certificates. According to the Federal “Company Law” to set up companies and provinces by the “Company Law” to set up companies, the registration fee paid is different. Federal registration fees are relatively expensive, provincial registration fee varies, accounting for about half of the federal fee. Specific fees can be consigned to the local lawyer registration agent registration procedures. Registration agencies issued a business license that the company was established. From the application to the registration is completed, usually takes two weeks.
2.2 registered companies in Canada should pay attention to the matter
- When registering for a Canadian company, contact your local Registrar of Companies or the Business Service Center in Canada. The registration procedures and complexity of several different Canadian companies are also different. The most important document when registering a business is the articles of association. The contents of the document shall include the full name of the company, share capital, share transfer restrictions, number of directors and business scope. In British Columbia and Nova Scotia, company memos and charters are required. According to the laws of most provinces, companies enjoy the treatment of natural persons without having to list the business scope.
- Canadian companies must develop their own standardized names before registering. Non-compliant names are not registered. Domain names ending in (.CA) are also regulated. To prevent others from registering a trademark with your registered company name, you should register it as a trademark while registering the company name. To truly protect their own company’s name. Company logos are also subject to trademark registration to be protected.
- Companies registered with the provincial government must have their place of business within the province, and if they have offices or branches in other provinces in Canada, registration must be done in their own province. Companies registered with the federal government can set up branches across Canada. Company registration must have a place of business. If you temporarily borrow someone else’s address before the registration as a place of business, you will need to make a change registration later.
- According to the Canadian company law, foreigners registered in Canada, a certain percentage of corporate shareholders in Canada, if registered in the Federation, shareholders must have at least 25% of Canadian citizens or permanent residents as a board member, if the provinces Registered companies, generally 50% of Canadian shareholders (each province is different). But the board members can hire, not necessarily funded, or the company’s share holders. As for the work arrangements and wages within the company, it mainly depends on the internal consultation.
- In Canada, federal and provincial governments tax their businesses separately, with a federal tax rate of 15% on a federal basis, and a tax rate of 10% on corporate income tax in BC.