Calgary, a vibrant city nestled in the foothills of Canada’s Rocky Mountains, is not only known for its picturesque landscapes and the world-renowned Calgary Stampede but also for its thriving business environment. Calgary offers a wealth of chances for both existing companies and startups because it is the centre of Canada’s energy industry and a magnet for entrepreneurs and inventors. Understanding Calgary’s company registration process is essential If you’re considering launching a company there.
This guide will walk you through the essential steps, requirements, and best practices to ensure your business starts on a solid foundation in the heart of Western Canada. Whether you’re a local entrepreneur or an international investor, Calgary welcomes you with open arms and a conducive environment for growth.
Benefits of Company Formation in Calgary
Registering a company in Calgary provides ample amount of benefits to the entrepreneur. Some of the benefits are as follows:
- Strong Economy: Historically, Calgary was the hub of the Canadian oil and gas industry and has contributed to the city’s strong economy. Although the energy industry in the province is facing challenges, Calgary is expanding into other sectors such as finance, technology, and much more.
- Skilled workforce: Calgary has a skilled and educated workforce. The presence of universities like SAIT, and the University of Calgary assures a constant flow of highly skilled graduates across a variety of areas.
- Quality Life: Calgary consistently ranks top in the global rankings of livability. It is a perfect blend of urban sophistication and closeness to outdoor activities because of its proximity to the rocky mountains.
- Infrastructure: Calgary has a modern infrastructure that can support businesses, and includes an airport of world-class quality with many international flights, making business travel easier.
- Network Opportunities: There are a variety of industry-related events, conferences, and seminars in Calgary offering plenty of opportunities to network and business growth.
- Innovation and Research: Calgary is home to various research institutions as well as innovation hubs which can be beneficial to businesses, specifically those working in the tech and innovation industries.
- Access to markets: The Calgary location offers easy access to markets across Western Canada and the U.S. This makes it a prime place for companies looking to tap into North American markets.
- Low Operating Costs: Comparatively with similar Canadian cities, such as Vancouver or Toronto, Calgary often has lower operating costs, such as office rent and salary.
Steps to register a company in Calgary
Here are the steps involved in registering a company in Calgary:
Step 1: Choose a Business Name and Conduct a Name Search
Before registering a company in Calgary, you’ll be required to select a name for your company. Your name should be distinct, memorable, and simple to spell. Once you’ve decided on a name, you will be required to check whether it’s available. This may be done digitally at the Alberta government’s website.
At OnDemand International, our team of seasoned professionals is dedicated to assisting you in the crucial process of selecting the perfect name for your business. With us, you can trust that your business name will not only reflect your brand’s essence but also comply with all necessary legal requirements.
Step 2: Determine the Business Structure:
The second step to company registration in Calgary is to decide whether you want to operate as a sole proprietorship, partnership, or corporation. Each type of company has its pros, responsibilities, and tax implications.
Step 3: Register Your Company with the Alberta Government
Once you’ve chosen a name, you can register your company with the Alberta government. You’ll need to file an Articles of Incorporation or a Declaration of Partnership, depending on your business structure. This can be done either digitally or by mail.
Step 4: Obtain Necessary Licenses and Permits
You might be required to get licenses or permissions before you can begin operations, based on the nature of your firm. Contact the City of Calgary’s Business Registration and Licensing Department to determine which licenses and permissions you need.
Step 5: Register for GST/HST:
If your business earns more than a certain threshold (as determined by the Canada Revenue Agency), you’ll need to register for the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST).
Required documents for company registration in Calgary
To register your company in Calgary, you’ll need to provide several documents. including:
– Articles of Incorporation or a Declaration of Partnership
– A business name reservation
– A NUANS report
– Identification documents for all shareholders or partners
– Proof of address for your business
Types of business structures in Calgary
Various kinds of companies can be formed in Calgary, such as:
- Sole Proprietorship: This is the most basic kind of business organization, in which a single person owns and manages the company. In such forms of businesses, all obligations and liabilities are directly owed by the owner.
- Cooperative: It is a business that is owned and operated for the benefit of its members. Profits and decision-making are shared by members.
- Partnership: A single firm is owned by two or more persons. They are jointly and severally accountable for any obligations, liabilities, and profit sharing of the business.
- General Partnership: Each partner participates in the management and liability of the business.
- Limited Partnership: Limited partners are only financially accountable for the amount they invested, while general partners operate the firm and are personally liable for their obligations.
- Corporation: A distinct form of company from its owners (shareholders). It can possess assets, incur obligations, and engage in contracts. In most cases, shareholders are not individually accountable for the corporation’s obligations.
Tax Compliances for Company Registration in Calgary
If you are registering a business in Calgary, there are several tax regulations that you should keep in mind. These include:
Registration for a Business Number (BN): A business number is a nine-digit code that allows you to identify your business in the eyes of the Canada Revenue Agency (CRA). It is necessary to apply for the BN when you intend to collect GST/HST or employees.
Registration for GST/HST: If you are planning to earn annual sales exceeding $30,000, you need to register for GST/HST. This means you’ll be required to take 5% GST from sales to customers within Canada and pay it into the CRA. Additionally, you’ll be eligible to claim tax credits for input on the GST/HST you pay to cover business costs.
Registration for payroll taxes: If you have employees, you have to sign up to pay taxes on payroll. This means making registrations to pay Canada Pension Plan (CPP) and Employment Insurance (EI) contributions. Additionally, you will need to deduct tax on income from your employees’ pay and then pay it into the CRA.
Tax filing for corporate income returns: All companies that are located in Canada must submit annual income tax returns for their corporations. They are due at the end of the sixth month after the end of the financial year.
Corporate income tax: Companies that are located in Canada have to pay tax for corporate profits on profits.
Company registration in Calgary is an important step for entrepreneurs and businesses that want to set up shop in this busy city in Canada. Calgary’s thriving business environment, coupled with its rich cultural backdrop, offers a unique blend of opportunities for both local and international businesses. By understanding and adhering to the registration process, entrepreneurs can confidently embark on their business journey, contributing to Calgary’s diverse and growing economic landscape.
At OnDemand International, we recognize the potential and promise that Calgary offers to businesses, both local and international. Our commitment is to streamline and simplify the process of establishing your business in this vibrant city.
This can easily be checked by seeing if the NIP or REGON are associated with the company in question. In the case of a sole proprietorship, they don’t own a KRS number so the NIP or REGON needs to be checked.
Share capital amount around PLN 50,000 is necessary to form a company, and it is also crucial to have NIP or REGON also including the register of VAT payment.
CEIDG is a business book of entries with info on self-employed entrepreneurs. Any sole trader must register in CEIDG.