Establishing a company in Canada is a significant milestone for entrepreneurs. However, the journey doesn’t end there. Post-setup, numerous critical steps must be undertaken to ensure your business thrives. This article outlines essential actions to prioritize after setting up your company in Canada. From compliance and operational considerations to strategic growth initiatives, this guide will provide valuable insights to help you navigate the early stages of your business successfully.
Things to consider after setting up your company in Canada
After incorporating your new company in Canada, you need to consider some of the things:
1. Opening a business bank account
Establishing a separate business bank account is paramount following company incorporation. Upon incorporation, a legal entity distinct from its owners is created. To maintain this separation and reap the associated benefits, it is imperative to segregate business finances from personal funds. Failure to do so can compromise the legal structure of the company.
2. GST/HST number
Determining GST/HST Registration is a crucial final step in establishing your company. Businesses anticipating annual gross revenue exceeding $30,000 are mandated to register for a GST/HST number and collect sales tax from customers. While not legally required, early registration is often advantageous. By doing so, companies can accumulate input tax credits on business expenses and potentially claim tax refunds.
3. Pay for your share
Upon establishing a corporate bank account, shareholders are obligated to contribute the value of their shares. For newly formed corporations, this initial contribution is typically a nominal amount as stipulated in the corporate minute book.
Post-Incorporation Maintenance
Post-incorporation, companies are obligated to maintain specific documentation and records to uphold their legal status and enjoy associated tax benefits. Adherence to these requirements is essential for corporate compliance.
1. Minute Book and Share Records: Meticulous organization of corporate documents is mandatory. These records, traditionally maintained in physical binders, can now be securely stored electronically.
2. Company Updates: Any alterations to company details, such as the appointment of new directors or address changes, necessitate the filing of official forms and the creation of corporate resolutions. These documents formally authorize the changes.
3. Annual Return and Resolutions: Companies are required to submit an annual return to government authorities accompanied by requisite fees. Additionally, annual shareholder and director resolutions must be prepared. Non-compliance with this obligation can result in corporate dissolution.
