Canada Company Incorporation : Ultimate Guide

How to set up a company in Canada?

Prior to the engagement, you need to understand the process of setting up a corporation in Canada. Tetra Consultants advises you to read through this guide to fully understand the steps required on how to set up a company in Canada.

In essence, your engagement will be broken down into 4 phases:

1. Planning and strategy
2. Incorporate
3. Bank account opening
4. Staying compliant

By systematically following the above 4 phases, you can expect to start conducting business with your Canadian company within 6 weeks. If you are looking to conduct Money Services Business, Tetra Consultants will assist you to secure the Canada MSB license.

Step 1: Planning and Strategy

• After understanding your business goals and activities, Tetra Consultants will recommend the most suitable corporate entity for you to carry out your business. Prior to setting up a Canadian company, you will be advised on the optimum paid-up share capital, corporate structure, legislations, and whether there is a need to apply for any licenses to operate your business.
• In most cases, the directors and shareholders are required to provide basic KYC documents. Some of these documents include the names of directors, certified true passport copies, proof of address, bank reference letter, and CV for our internal due diligence checks.
• All Canadian companies will require a local director. If required, Tetra Consultants will provide you with a Canadian nominee director to meet the requirements. Our legal team will draft the nominee agreement to be signed by all parties. This is to ensure that the nominee director does not have any power or authority in your company.
• Thereafter, Tetra Consultants will conduct a Canada corporation search to check the availability of your preferred company name with the Innovation, Science, and Economic Development Canada.
• For registration of trade names, we will also refer to the registry of the jurisdiction in which you intend to conduct business.
• According to the business activity and corporate structure, Tetra Consultants will also draft Articles of Incorporation, business plan, and other incorporation documents. The Articles of Incorporation will include your corporate name, share structure, restrictions, number of directors, and other relevant provisions.
• Generally, the Articles of Incorporation can be submitted in the official language of your choice (English or French). As such, no translation will be required.

Step 2: Incorporation

• Once you fully understand how to create a corporation in Canada, we will then proceed to file for registration with Canada Company Registry.
• On average, the application will be approved within 1 week. After receiving approval, Tetra Consultants will courier the Certificate of Incorporation, Memorandum and Articles of Association, and other corporate documents to your preferred address. If you need to find company registration number or any other business detail, you should refer to these documents.
• In the event your business activity requires an extra provincial license or any other licenses to legally conduct business in Canada, Tetra Consultants will assist with the license application. One popular option will be the Canada Money Service Business License.

Step 3: Bank Account Opening

• After your Canada company is successfully set up, Tetra Consultants will assist you in opening a corporate bank account. Our team has established partnerships with multiple reputable banks in Canada. Some of these banks include Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce.
• If you prefer to have a corporate bank account overseas, Tetra Consultants will assist you with opening an international offshore corporate bank account.
• Typically, a corporate bank account opening will take roughly 4 weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request a waiver.
• Once your account has been successfully opened, Tetra Consultants will courier the internet banking token and access codes to your preferred address.

Step 4: Staying Compliant

• Once the above has been completed, Tetra Consultants will continue to provide you with the necessary accounting and tax services to ensure that you can continue to legally conduct business while staying compliant with regulatory obligations.
• Our team of dedicated consultants will timely prepare your firm’s financial statements, corporate tax returns and manage bookkeeping on your behalf.
• Generally, corporate income tax is charged at 15%.
• Businesses are required to maintain proper books of account and upkeep the associated accounting documents for minimally 6 years.
• Our team of dedicated consultants will continue to clarify any doubts you may have concerning your company’s obligations.

Contact us to find out more about how to register company in Canada. Our team of experts will revert within the next 24 hours.

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