Are looking for setting up a business in British Columbia? British Columbia’s business scene is as varied as its landscapes, from the lively tech hub of Vancouver to the quiet shores of Vancouver Island and the resource-rich towns in the interior. No matter what you want to do or what you do for a living, our guide will help you get ahead in British Columbia. In this comprehensive guide, we’ll provide you with all the details you need to know about company incorporation in British Columbia. Its procedure, types of business entities, incorporation cost, taxation, benefits, etc. Read the complete article.
What is A Corporation?
A corporation is its formal entity, separate from the person who owns the business. Under Canadian law, a corporation has identical rights and legal duties as a person, but not as a single proprietorship.
Legal necessities for Setting up a business in British Columbia
Steps to How to start a business in British Columbia
The following steps to how to start a business British Columbia, Canada are as follows:
1. Choosing a unique business name
Choose a name for your business that is unique and easy to remember. Make sure it follows the rules for names set by the British Columbia Business Registry.
2. Select the appropriate business structure
The initial step in establishing a business involves deciding regarding the desired business structure, which may include options such as a corporation, partnership, or sole proprietorship. Many firms choose to establish themselves as corporations primarily because of the limited liability protection it affords.
3. Create an Article of Incorporation
Please draft the Articles of Incorporation for your company. This document establishes the fundamental framework and regulations governing your corporate entity. One option available to individuals is the utilization of a standardized template that has been made available by the government of British Columbia.
4. Appointment of Director
Make sure your company has at least one director. The board of directors is in charge of running the corporation. Directors may be located anywhere in the world.
5. Business Number
A Business Number (BN) and other applicable tax accounts (such as GST/HST and payroll deductions) must be set up with the Canada Revenue Agency (CRA).
6. Permit and License
To perform your Business and Financial Activities, you need to acquire a business license from Provincial and federal authorities.
7. Open a Corporate Bank Account
You need to open a corporate bank account to perform your financial activities after the incorporation process.
Read More: Company Registration in Vancouver
Business entities to register a business in British Columbia
The different types of business entities for setting up a business in British Columbia are:
- Sole Proprietorship
- General Partnership
- Extraprovincial Corporation
- Branch Office
- Limited Partnership
- Corporation
- Not-for-profit Corporation
Cost of register a business in BC
The total cost for company incorporation in British Columbia is $380 ($350 + $30 name approval fee). Corporate Online is a web-based incorporation service, but you may also incorporate your business by mailing in physical documents to the British Columbia Corporate Registry.
You must also register your company extra provincially if it is based outside of British Columbia and will do business there. Extraprovincial registration fees are different from one province or territory to the next.
The cost of incorporating with OnDemand International is slightly greater than the cost of incorporating yourself, but you will get all of your documentation completed and filed correctly faster.
Taxation Structure to Start A Company In British Columbia
The taxation structure to start a company in British Columbia is mentioned below. In British Columbia, There are two types of taxes followed:
Provincial Tax
In addition to federal income tax, British Columbia corporations must also pay provincial income tax. British Columbia’s current provincial corporate income tax rate is 12 per cent. However, a reduced rate of 8% applies to small businesses with active business income up to $500,000.
Federal Tax
All Canadian corporations, including those in British Columbia, must pay federal income tax. The current federal corporate income tax rate is 15%, but small businesses with active business income up to $500,000 are subject to a lower rate of 9%.
Benefits of Incorporate a business in British Columbia, Canada
- Liability limited: The shareholders in an incorporated company are only liable for the debts and liabilities of the company this means they do not have personal responsibility for the liabilities and debts of the business. This could protect your wealth in case your company is sued, or becomes insolvent.
- Tax benefits: There are a variety of tax benefits that come when you incorporate a business in British Columbia. For instance, small companies located in British Columbia benefit from a lower tax rate for corporations than individuals.
- Credibility of business: Registering your company will help establish your company as a credible and legitimate entity. This can help deal with suppliers, investors, and customers.
- Capability for raising capital The process of raising capital is simpler for an established company than for a non-incorporated company. This is due to investors being much more inclined to fund a business that has a limited liability and a long-term existence.
- Perpetual existence A company that is incorporated is a perpetual existence company, meaning that it exists regardless of whether it dies. directors or shareholders. This makes it simpler to transfer the ownership of the company to the next generation.
Examples to Start a Small Business in British Columbia
- Grocery Stores
- Restaurants and Cafe
- Pet Caring Business
- House Cleaning Business
- Salon & Spa Business
Conclusion
Setting up a business in British Columbia can be a crucial step on the path to commercial success. It provides protection, credibility, and access to funding that can facilitate the success of your business. You can establish a firm foundation for your business by adhering to the legal requirements and understanding the tax implications.
Are you prepared to begin the company formation process in British Columbia? Feel free to contact our team of experts for advice and assistance. At OnDemand International, We are here to assist you at every stage. Contact Us Today!
FAQ’s
It may just take a few hours to apply for incorporation in British Columbia. It might take longer to prepare the documents, and it might take up to 15 days to get your Certificate of Incorporation.
Yes, under the British Columbia Business Corporations Act, companies must submit every year reports, maintain complete company records, and attend frequent meetings following incorporation.
In British Columbia, there is no minimum equity requirement for incorporation. It is possible to incorporate with just $1 in equity or with no equity at all.
