Starting a new business is a really exciting process, but several crucial steps need to be followed to become properly incorporated. Selecting the corporate name, completing the articles of incorporation, obtaining the necessary permits and opening a corporate bank account are all essential parts of the process.
Entrepreneurs have the right to incorporate their business in one of 13 Canadian provincial jurisdictions or in one federal jurisdiction.
There are several questions to be asked before the selection of corporate jurisdiction. Knowing where the company will carry out its activities is the first one. Deciding whether the protection of a federal name is important will be the second consideration. An entrepreneur should also think about the possibility of incorporating other companies in the future.
Corporate Name Availability and Selection
For many, the selection of the corporate name is the most challenging part of the process.
Each jurisdiction has particular guidelines that entrepreneurs need to familiarise themselves with before getting started. The name can be chosen by the incorporator. Alternatively, it can be the corporate number that the jurisdiction assigns. The second option is great for people that need to complete the process fast and without spending a lot on incorporation.
The proposed corporate name needs to be submitted for approval. The desired name should be searched through the Newly Upgraded Automated Name Search (NUANS) which can commonly be done through a nearby registry or online at nuans-canada.ca
Other Documents and Incorporation Specifics
The next step involves completing the article of incorporation. The process should involve the respective government agency in the jurisdiction of preference.
The article of incorporation has to contain information about the registered office’s location, the classes of shares that the corporation will have the authorization to issue, the restrictions on share transfers, the number of appointed directors and other clauses that will have to be included in the article.
Upon its completion, the article of incorporation will have to be submitted and registered with the appropriate agency. After the article of incorporation is dealt with, the incorporator will have to purchase a corporate seal and minute book. The minute book holds all of the essential documents, including the ones related to the incorporation.
Setting Up a Bank Account
A corporation needs to have its own bank account that can be created once the incorporation process ends. The bank will need a copy of the article of incorporation in order to get the account process started.
Only a person that is an authorised signing officer will have the right to sign on the account. Once this happens, access to the corporate account and the ability to sign cheques will be granted. This is when the interactions with the bank can end.
A newly formed incorporated company can still order their cheques online, through a company like Cheque Print Solutions instead of the more costly options available through a financial institution – this option is quicker, more affordable, and more flexible.
DBA Business – What is It?
A company in Canada can be registered as a DBA or “doing business as.” This means that the legal name of the business is different from the incorporated company name. Researching name selections would be the first part of this process and again can be done through a nearby registry or online.
Once the “DBA” name has been registered, you can take the document to your bank so that cheques can be written and deposits received under this name.