The Basics of Corporate Law in Canada
Corporate law is the body of law that governs the formation, operation, and dissolution of corporations and firms like Freedom Law specialises in them. This area of law is generally divided into two categories: public and private corporations. Public corporations are owned by shareholders and are traded on stock exchanges, while private corporations are owned by a limited number of people and are not traded on stock exchanges.
In Canada, corporate law is primarily governed by federal legislation, with each province also having its own corporate statutes. The most important piece of federal legislation is the Canada Business Corporations Act (CBCA), which applies to all corporations incorporated under federal or provincial legislation.
Number 1: The first step in incorporating a company is to choose a legal structure. The most common types of business structures in Canada are sole proprietorships, partnerships, and corporations.
Number 2: Once you have chosen a legal structure, you will need to obtain the necessary licenses and permits required to operate your business. Depending on the type of business you are operating, this may include a business license, a food handler’s permit, or a liquor license.
Number 3: Once you have obtained the necessary licenses and permits, you will need to register your business with the appropriate government agencies. For example, if you are incorporating a company, you will need to file incorporation documents with Corporations Canada.
Number 4: After your business has been registered, you will need to obtain a business number from the Canada Revenue Agency (CRA). Your business number will be used for all of your business dealings with the CRA, such as filing taxes and payroll.
Number 5: You will also need to open a business bank account in order to keep your personal and business finances separate. Once you have a business bank account, you can apply for a line of credit or a small business loan if you need financial assistance to get your business off the ground.
Number 6: If you are planning on hiring employees, you will need to obtain worker’s compensation insurance and comply with employment standards legislation.
Number 7: Finally, you should develop a good marketing strategy to help promote your business and attract customers.
Corporate law is a complex and ever-changing area of the law. It is important to seek legal advice from a qualified lawyer before incorporating a company or entering into any type of business transaction. A lawyer can help you navigate the complexities of corporate law and ensure that your rights and interests are protected.