Starting and running your own business is one of the best ways to earn a living. It involves coming up with an idea of solving consumers’ problems through providing goods and services. However, to ensure you’re generating more revenues, you must launch your business in an ideal destination such as Canada.
What makes many people launch their businesses in Canada is the availability of natural resources, skilled labor, and easy access to the market. That’s why you’ll always see most entrepreneurs, both local and international, considering starting businesses here.
But sometimes, registering a business in Canada can be an overwhelming task. And if you’re not careful, you can spend a lot. With that said, you can save money when registering a business by working with a reputable company registration broker. Such a broker will assume the whole process of your business registration, allowing you more time to concentrate on other important matters.
Here are the critical steps to follow when registering your business in Canada:
1. Decide On A Form Of Business Structure
There are four main forms of business organizations you could launch in Canada. Each of these has specific rules and regulations guiding them. For instance, the form of your business structure can determine the level of your liability and the amount of tax to pay to the government. So, you need to research and launch a business structure that conforms to your short-term and long-term goals.
Here are the major forms of business organization you can launch in Canada:
- Sole Proprietorship Business
The sole proprietorship is one of the most common forms of business organization in Canada. It involves a business launched and operated by an individual.
A sole proprietorship requires fewer legal formalities, making it the best choice for most entrepreneurs. However, these types of businesses are registered with their owners’ names. This means that when the owner dies, the business ceases to exist. However, one major advantage of running a sole proprietor business is it allows you to keep all the profits by yourself.
A partnership is another common form of business you can launch in Canada. It involves two or more people running a business together to generate and share profits. There are two kinds of partnerships—general and limited partnerships.
In a general partnership business, all partners are 100% responsible for the liabilities of the company. On the other hand, a limited partnership business allows its partners to limit their liabilities according to their capital contribution. However, in both cases, the business itself doesn’t pay any tax. It’s the responsibility of the partners to pay tax from their shared profits.
Corporations are legal entities separate from their owners. These are businesses that have legal personalities, which means such businesses can hire employees and sign contracts in their own names. For that reason, the owners aren’t responsible for the business mistakes and liabilities. So, if you want to protect your assets against lenders and other suppliers, this could be the best form of business to launch in Canada.
- Limited Liability Businesses
A limited liability company is a form of business structure that has the characteristics of both corporations and partnerships. For instance, it provides limited liability to owners and tax efficiencies of a partnership business.
2. Choose A Business Name
Now that you’ve decided on the best business structure, you need to find a suitable name. This is a name that can help distinguish your business from others in the market. For that reason, you need to select a unique name that can describe your products or services.
However, you must consult the registrar of companies to ensure no other business has been registered under your preferred name.
Registering your business with a unique name is essential to avoid confusing the consumers. It can also prevent you from facing lawsuits in case a similar business has breached contract laws and other legal agreements.
3. Register Your Business Name
After selecting your business name, it’s time to register it. You can register your business through online portals or go to the registrar of the company’s office. However, you must ensure you attach the relevant documents to your registration forms. For instance, when registering your business, you need to produce documents like articles and memorandum of association.
An article of association is a document that communicates internally with employees. On the other hand, a memorandum of association is a document that communicates with outside stakeholders. Other essential documents you may produce when registering your business include directors’ and shareholders’ registers.
4. Get A Business License
If the registrar is satisfied with the objectives of your business, they’ll give you a master business license. This written document shows that your business has been legally registered and allowed to operate in Canada. However, you must pay the required fee to obtain this license.
Apart from the master license, you need to obtain other specific operating permits. For instance, a permit to operate a liquor store would be different from that of a greengrocer. So, depending on the type of products your business provides, be sure to secure the correct licenses and permits.
5. Launch Your Business
Now that you’ve secured a business license, the next step is to launch your business. This involves opening your business doors to customers to allow them to buy products or services from you. However, it’d be a good idea to market your business.
Marketing involves using promotional messages to build your business visibility and create its awareness. For that reason, you need to research to find the best marketing strategies for your business. This is important because marketing is the only way to help outshine other firms in the market. Besides, if you decide to launch an offline store, it’d be a good idea to select a strategic position.
Starting a business entails registering it. This is important because the government won’t allow you to run an unregistered firm. So, if you want to avoid finding yourself on the wrong side of the law, follow the steps above when registering your business.