Federal Incorporation
EMPOWERING YOUR BUSINESS ACROSS CANADA
Once you’ve decided to incorporate your business, the next step is to determine where to incorporate it. Federal incorporation can offer major benefits for entrepreneurs with a big vision. However, whether you should incorporate federally or provincially depends on the specific circumstances of your business — and your plans for the future.
The Benefits of Federal Incorporation
Federally incorporating your business means that your company will not only receive the tax savings and liability protections seen with provincial incorporation, but it will also benefit from limited name protection to conduct business anywhere in Canada under its chosen name. Federally incorporating can also provide your business with enhanced global recognition. These additional benefits can protect your company’s long-term vision.
FAQs
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Without federal incorporation, your business may be unable to operate under its chosen name nationwide if a business of the same or similar name exists in another province or territory.
Additionally, federally incorporating your business can enhance the perceived credibility and scale of your business in the eyes of investors.
Note that at least one of your directors must be a Canadian resident for a federal corporation, whereas there are no residency requirements for directors of B.C. companies.
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The first step is identifying who will serve as directors of the company and what share classes are required. Consulting with other business advisors such as tax advisors or accountants is also advised. The final steps before federally incorporating are registering a corporate name and drafting the corporate bylaws that will govern the business.
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Once all the required information is gathered, federal incorporations can be processed as quickly as 3 to 5 business days. Finalizing name reservations for federal corporations generally takes 2 to 3 business days longer than provincial incorporations. Numbered companies can be incorporated within 48 business hours.
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Before starting the federal incorporation process, you’ll need to gather contact information for all directors and shareholders, including legal name, date of birth, occupation, citizenship status, tax residency, mailing address, email address, phone number, and copies of government-issued photo ID.
Ready to Talk About Federal Incorporation?
When it’s time to consider federally incorporating your business, Parr Business Law can help you navigate the incorporation process with confidence and clarity. Our lawyers have the specialized knowledge to provide you with reliable and candid legal advice so you can progress your business at the national level. Schedule a meet and greet with us today, and let’s discuss how to protect the future of your business.