VIDEO | BENEFITS OF INCORPORATION

 

Incorporating your company in Canada has a variety of benefits to you as a business owner. Incorporation effectively means that your business becomes a  separate legal entity created under the Business Corporations Act or Canada Business Corporation Act offering a flexible array of ownership, control, and profit participation share structures. A statutory scheme with corporately established rules and governance. Although professional advice is recommended to best design a specific corporation, set up costs are surprisingly low.

A few of the benefits of Incorporation include:

  • Very flexible business structure
  • A two-year provincial tax holiday for most new businesses
  • Creates a marketable entity
  • Very flexible ownership options, allowing possible participation of family or key employees
  • Allows for different equity contributions, not all owners have to make the same investment
  • Allows for non-controlling ownership interests (i.e. non-voting shares) for family, key employees, etc.
  • Many income splitting options
  • Lower tax rates for high-income individuals
  • Limited liability in most areas (tax liability, employee taxes, and wages are not limited)
  • Allows preferred ownership interests through preferred share structures giving special rights to prescribed investors
  • A Corporation is immortal, creating a flexible and advantageous estate planning tool

There are a few fees associated with incorporation, including a legal fee to set up and an annual fee of to run. However, these are more than manageable and well worth it for the wealth of benefits incorporation offers you.

 

Are you thinking about incorporating your business? Or just want to learn about the process? Give us a call today to speak to one of our professionals:  250.383.9104. We would welcome the opportunity to work with you to start the steps to  incorporate your business

VIDEO | Incorporation in Canada

I am Michael Velletta, a founding partner of Canadian law firm Velletta & Company. Why should you choose British Columbia as your place to incorporate? For those desiring to do business in Canada the obvious jurisdiction of choice is British Columbia.

 

British Columbia is an investor friendly environment and has the most contemporary business laws in Canada. Perhaps, even the most contemporary anywhere on the globe. These laws reduce bureaucracy and increase flexibility. An interesting feature of incorporating in British Columbia is that at the same time you incorporate in BC you can also incorporate into Alberta, which is the neighboring province.

 

In fact British Columbia companies can be extra-provincially registered in every jurisdiction in Canada and can be extra-territorially register in just about every jurisdiction around the globe. One advantage of being a British Columbia company is that you have access to the Canadian legal system which is considered extremely stable and is very well-respected. It also meshes well with all US jurisdictions, Australia, New Zealand, Great Britain and many other corporate business jurisdictions around the globe.

 

A BC incorporation also gives you great opportunities and exposure to Canadian capital markets with the Toronto Stock Exchange that Toronto Stock Exchange, Venture, which is the junior market, and the Canadian Stock Exchange. In addition, companies that are listed companies in Canada can at the same time use documents filed in Canada on inter-listed U.S. stock exchanges such as NASDAQ, the American Stock Exchange and the New York Stock Exchange.

 

Finally, the cost of doing business in Canada is much more attractive than most other jurisdictions. You might be surprised to learn that the tax regime in Canada is not very aggressive, and is in deed much more attractive than most U.S. jurisdictions.

 

Velletta & Company is adept at advising international clients on all corporate matters, and particularly creating your British Columbia Corporation. I hope that you will let Velletta & Company provide you with corporate advice and be a part of your team.