Benefits of Corporate Registry in Canada
Incorporation is the legal process that registers a company as an entity independent from its owners. The incorporation of a business offers many advantages and allows it to legally operate in the country.
Depending on their operation, Canadian businesses can be incorporated federally or provincially. Two key legislations govern the incorporation of organizations at the federal level: Canada Business Corporation Act for commercial businesses, and Canada Not-for-Profit Corporations Act NFP (NFP for charitable and not-for-profit organizations).
Here’s how you can benefit from the corporate registry:
Establish your business identity
Registering your business name will help you create a brand identity. Registering your business name will allow you to check if the name you choose is not identical to any trademark or company name.
Many small businesses understand that keeping costs low is key to a successful business operation and high returns. Small businesses should take advantage of the many tax advantages and opportunities that are available to them. Registering your business in Canada will subject you to a lower tax rate.
If your small business is a sole proprietorship or partnership, you will be subject to a higher tax bracket, and therefore must pay higher personal income taxes. Because profits from your small business are considered your personal, individual income, and therefore subject to higher taxation, compared to national income levels, they will be treated as such.
If such profits are taken as corporate earnings and compared to other companies in the country, they will be considered lower corporate income brackets and subject to lower taxes. Small businesses in Canada have the added benefit of a small business deduction that further reduces the amount of corporate income tax they must pay.
Free Trade Agreement Benefits
Canada is a signatory of a variety of Free trade agreements that allow Canadian businesses unlimited access to their markets. Canada has signed the North American Free Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP), and the EU’s Comprehensive Economic and Trade Agreements (CETA), which offer access to these important markets at favorable terms.
Better Business Environment
Canada offers businesses a favorable business environment that allows them to thrive. Canada is ranked as one of the most accessible countries for doing business. Businesses, particularly start-ups, are provided with a favorable environment by low net effective tax rates. Businesses are also offered credit at extremely low rates and multiple investment options.
Globalize your business name
This is one great advantage of a corporate registry. You can register your business at the federal level and maintain the same entity name across the country regardless of type or location. This is especially useful for those industries that want to expand their operations, such as retail and warehousing.
Businesses must choose a unique name that is not already in use. This will ensure a successful registration. It is recommended that you consult a corporate lawyer to do the same. A skilled lawyer can help you to choose or create a unique business name and search for pre-registered names to ensure that your business is properly incorporated.
Promotes a competitive workforce
Canadian workers are among the most competitive and educated in the world and offer many opportunities for businesses to profit from their skilled workforce. The absence of restrictive labor laws, which are common in many developed countries, is another attractive aspect of Canada’s economy.
Easier access to financial services
You might need the right company bank account to receive payments, pay suppliers, keep your business income separate, a business credit to charge expenses, or a loan for expansion. To apply for financial services for your company, you will need to show proof that you have a viable business. You can use the business number that you get at registration to prove your identity.
Federal incorporation is a great way to incorporate your business. This process is easy and accessible. The following documents are required to file your federal articles of incorporation:
An address registered for operation
A unique business name
Type of business entity
The initial board of directors for your business
Stop by our GoldKey Registry offices with your official documents and we’ll help you incorporate your business in no time!