How to start a company in Canada
#1
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Thread Starter
Joined: May 2014
Posts: 328
How to start a company in Canada
I am Canadian PR live in Ontario, Canada
I want to register my company in Canada, and I have absolutely no idea where to start and how much it will cost
Shall I register it in Canada (Federal) or Ontario?
What are the benefits of both options?
Where can I register? The link?
How much does it cost?
TThanks
I want to register my company in Canada, and I have absolutely no idea where to start and how much it will cost
Shall I register it in Canada (Federal) or Ontario?
What are the benefits of both options?
Where can I register? The link?
How much does it cost?
TThanks
#2
Re: How to start a company in Canada
I had a Canada incorporation. Can't remember why. I suspect it had to do with selling around the world but, in the end, we formed a US corporation for that. I suspect that. if you don't know of a good reason for needing one, you don't need one.
I have several numbered Ontario corporations, they meet most needs. I only have multiple ones because sometimes there's a tax advantage to creating a new one. Numbered companies don't have a name, just the next sequential number, but they can trade using a name. It's common, for example, to see on the side of trucks "123456789 Ont. Inc. dba Joe's Trucking". The advantage in not naming the company is that it avoids paying for a name search. In fields where are lots of small companies, computer consulting for example, everyone is used to numbered firms so there's no need to even have a trade style.
One can create a company at the Ministry for Consumer Affairs (presumably now a website, not a building) but I've never done it. Usually my accountant does it. last time it was a lawyer, it's routine for either of them. Cost is less than $1,000.
One thing to be aware of is that it's easier to create the company than to close it down. A company is for life, not just for Christmas.
I have several numbered Ontario corporations, they meet most needs. I only have multiple ones because sometimes there's a tax advantage to creating a new one. Numbered companies don't have a name, just the next sequential number, but they can trade using a name. It's common, for example, to see on the side of trucks "123456789 Ont. Inc. dba Joe's Trucking". The advantage in not naming the company is that it avoids paying for a name search. In fields where are lots of small companies, computer consulting for example, everyone is used to numbered firms so there's no need to even have a trade style.
One can create a company at the Ministry for Consumer Affairs (presumably now a website, not a building) but I've never done it. Usually my accountant does it. last time it was a lawyer, it's routine for either of them. Cost is less than $1,000.
One thing to be aware of is that it's easier to create the company than to close it down. A company is for life, not just for Christmas.
#3
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Joined: Dec 2016
Location: St Catharines, Ontario From Bournemouth UK
Posts: 417
Re: How to start a company in Canada
Getting a numbered company in Ontario will cost just under $500 when done online. If you only trade in one province, then it makes sense to get just a numbered company in Ontario. If you are trading across Canada then a Canadian company is required. https://apintertrust.com/ can set up a company and register for HST within 1-2 hours.
Last edited by glendem4; Mar 22nd 2022 at 12:02 am.
#4
Re: How to start a company in Canada
I am Canadian PR live in Ontario, Canada
I want to register my company in Canada, and I have absolutely no idea where to start and how much it will cost
Shall I register it in Canada (Federal) or Ontario?
What are the benefits of both options?
Where can I register? The link?
How much does it cost?
TThanks
I want to register my company in Canada, and I have absolutely no idea where to start and how much it will cost
Shall I register it in Canada (Federal) or Ontario?
What are the benefits of both options?
Where can I register? The link?
How much does it cost?
TThanks
We had to do a name search which is weird but required unless you want to call your business by your name with nothing added.
You have to register the name with the province and its yours for five years I believe.
You can be a sole trader or a partnership.
Best thing to is to look up starting a business in Ontario. there is a lot of stuff on both Ontatio.ca and canada.ca.
You can call the province or the Canadian government agencies and they are very helpful.
If you turn over more than $30K you will need to register for HST. Or you can register for it right off the bat.
#5
Re: How to start a company in Canada
I've always been registered and always used the simple method (collect at one rate, remit at a lower rate, keep the difference). I would do that regardless of the expected income. I wonder how it works if you don't register and then make over $30,000. Are you obliged to use the full accounting method and are you liable for the HST you didn't collect on the first $30,000?