Instructions on How to Form a Company in Quebec.
If you are an entrepreneur, one of the most important choices you will have to make about your company is whether or not to incorporate. The process of navigating the necessary papers to incorporate a business in Quebec might seem overwhelming.
Read on to learn all you need to know to incorporate your business in Quebec, which will make the process much simpler for you. Are you prepared to begin right this moment?
Why should you form a corporation for your business?
Incorporating a company can provide numerous advantages to your business. The following are some of these:
Limited responsibility for the owner of the firm.
Tax advantages
Ability to raise funds
Capability of designating several share classes and transferring shares
Ensure that the life of the company will go on without interruption.
A more professional image
Read Ownr’s in-depth guide on incorporating in Canada to discover more about the advantages of formalizing your business as a corporation.
Advantages of Forming Your Company in Quebec
It is essential to give careful consideration to the processes and expenses involved in forming your company in the province in where your primary operations are based, whether that be at the federal or the provincial level (in this case, Quebec).
Both options have their merits, but before you choose the one that will be most beneficial to your company in the long run, you should take into account your long-term objectives. Your company will be subject to the guidelines outlined in the Canada Business Corporations Act if you choose to incorporate at the federal level.
If you choose to incorporate your firm on a provincial level in Quebec, it will be subject to the rules and regulations outlined in the Quebec Business Corporations Act. Continue reading to learn the perks that come with each option.
Advantages of forming a company under Canadian federal law in Quebec
Increased name protection: If you want to be sure that no one else may use your company’s name anywhere in the United States, you should probably incorporate your company under federal law.
Consider your long-term expansion goals for your company as well as the possibility that other businesses may operate under the same business name in other provinces or territories before deciding whether or not to incorporate your company at the federal level.
One of the primary benefits of federal incorporation is the increased name protection that it provides.
Location of the Company’s Headquarters: When a company is incorporated federally, it has the freedom to establish its headquarters anywhere in Canada; but, when a company is incorporated provincially in Quebec, the headquarters must be situated inside the province.
The advantages of forming your company as a provincial corporation in Quebec
Automatic registration: To federally incorporate a company in Quebec, you will first need to satisfy the conditions for federal incorporation, and then you will need to register your firm with the Registraire du Quebec.
This is a two-step procedure. You will not be required to do so for the provincial incorporation process, since this is completed in just one step and does not need any extra registration.
The decision to incorporate your company on a provincial level in Quebec does not restrict your freedom to conduct business in any of the other provinces or territories in Canada. Whether you incorporate your business at the federal or provincial level, you will have the ability to serve customers situated in any part of the globe.
Board of directors: Businesses that are federally established are required to adhere to certain requirements for their board of directors, and one quarter of the board members must be Canadian citizens or permanent residents in order to call Canada their permanent home.
According to the Business Corporations Act of Quebec, there are no limitations placed on the origins of directors on your board, nor are there limits placed on where those directors choose to make their homes.
Businesses that fall under the jurisdiction of the Quebec Business Corporations Act have the option of deciding whether or not to issue share certificates in the event that they want to issue shares. Alternatively, enterprises that are federally incorporated are obligated to only issue shares after they have received full payment for those shares, and they must also issue share certificates.
Are you a company owner interested in establishing a stock option plan for your employees? Ownr has you covered with our comprehensive guide to employee stock ownership plans (ESOPs) for Canadian companies.
Processes à suivre pour constituer une société commerciale au Québec
Now is the time to get the necessary paperwork together and pay the necessary costs if you have made the decision to incorporate your company on a provincial level in Quebec.
In addition to the measures indicated below, it is essential that you take notice of the fact that filings with the government that you undertake on your own may still need some paperwork and expenditures in order to guarantee that your company is in compliance.
To assist you in preparing the documentation required for compliance, it is strongly suggested that you seek the assistance of a qualified legal practitioner.
Are you experiencing stress as a result of compliance? Looking for a more straightforward approach? Form a corporation using Ownr and avoid paying extra costs to the government for filings. You get the following services together with your provincial incorporation when you choose our convenient one-stop solution:
Our Online Minute Book service for a whole calendar year
Name registration for the company Company organization paperwork and share issuances
Gaining Access to the Ownr Perks
Choose a moniker for your company’s corporate entity, or submit an application for a numeric designation.
If your company uses a name that isn’t commonly used, you have an additional responsibility to ensure that it abides with the standards that apply. It has to be a word or a combination of words that characterize it as a business entity and set it apart from all other companies. In other words, it needs a corporate name.
You, as the person who is incorporating the business corporation, are required to make a statement that the business corporation name is, to the best of your knowledge, unique and that you have taken all of the necessary steps to ensure that it is in accordance with the law.
In addition, in order for a company to legally do business in Quebec, the company’s name has to either be in French or have a French translation of the name, and it also needs to be in accordance with the Charter of the French Language.
Your one-of-a-kind company name should have the following elements:
One definition of a distinguishing feature is “a component that clearly differentiates the company from any other.”
An example of a descriptive element is one that gives a broad overview of the products and services that the company provides.
A legal ending, which identifies the company’s legal structure and often appears in an abbreviated version.
An example of a distinctive company name is Magasin Général Petit-Champlain Inc.
It is possible that the Registraire des entreprises du Québec will give your company a number identification if you do not choose a distinct name for your firm and submit it to them.
This is what the numerical designation will look like:
A unique number
The name “Québec” in full.
The abbreviation “Inc.” stands for “incorporated.”
A identifying number would look something like this: 8502-58204 Québec Inc.
After you have decided on a name for your company, you have the option to use the service called “produire une demande de réservation de nom” to submit a request to reserve that specific name for your company for the subsequent 90 days.
Put together all of the required documents.
Articles of constitution are documents that include information about your company, such as the legal name of the company as well as any other versions of the name (for example, a version of the name in French), information on the directors and founders of the corporation, information regarding the officers, and the location of the headquarters of your company.
In addition, it contains directions on share classes, as well as the rights and restrictions that are associated with each of those share classes, information on the existence of a unanimous shareholder agreement that may restrict or remove the powers of the board of directors, and details on the limitations that are placed on the activities that the corporation may engage in.
Initial declaration:
This comprises more crucial information about your company, such as the industry it operates in, further information on the location of your company’s headquarters, shareholder and employee data, and so on.
After submitting the necessary papers and paying the expenses related with it, you will be issued a Québec enterprise number (NEQ), which is a unique numerical identity with 10 digits that is provided to commercial businesses operating inside the province.
After that, a certificate of incorporation for your company that has the date filed with it will be sent to you. This, together with any and all further required documentation, will be sent to the Registre des entreprises. Your company will be officially recognized as a Quebec corporation after all of these steps have been completed.
Don’t lose sight of the finer points. When you incorporate your business in Quebec with Ownr, we take the uncertainty out of completing your paperwork, so you can be assured that nothing important will be overlooked (from government filings to restrictions on the transfer of company shares).
There is a single, safe location where you can get all of the resources you need to successfully incorporate your small company. In addition to that, you will have access to exclusive privileges that will assist you in expanding your company. Do you still have doubts? Discover more by reading the experiences of other customers.
The fees associated with incorporating a company in Quebec
Here is a rundown of all of the expenses that must be paid in order to incorporate your firm in Quebec, whether on the federal or the provincial level.
Ownr makes it simple and inexpensive to form corporations.
Spend less time on administrative tasks and more time focusing on what you do best as a business owner. If you are the owner of a small business, you may register and incorporate your company using Ownr in less than 15 minutes.
Packages for provincial Quebec registration start at $699, while packages for federal incorporation start at $499. Do you need more continuing support? For more information, please refer to the price and package options.
Payments required for federal incorporation.
The standard charge to register an article of incorporation with the federal government is $200 CAD (with the option of paying $300 CAD for rapid service). You will also need a report from the NUANS name search to assess whether or not the name you have selected satisfies the requirements that have been established.
This add-on will set you back an extra $35 CAD. It is not necessary to have a NUANS name search report name for other names (for example, your French language name if your primary name is in English).
Lastly, enterprises that are formed in Quebec under federal law are required to submit a declaration of registration with the Registraire des entreprises du Québec (see fees below). It is quite possible that you will have to pay extra expenses in order to complete your government files and assure compliance.
Fees required for provincial incorporation
The standard filing charge for a declaration of registration in Quebec is $356 CAD, and the cost of an expedited service filing is $534 CAD, if you want to incorporate a business in the province. If you want to be sure that you have complied with the law in a reasonable manner, using a name search service (NUANS is not necessary) may result in additional fees for you.
To reiterate, you will want to include extra legal expenditures in your budget so that you can file the necessary paperwork with the government.
Ongoing concerns after they have been introduced
Additional expenses as well as continuing documentation
After the company has been formed, there are a number of continuing documentation and fees that need to be kept up to date in order to guarantee that the company is in good standing and may continue operating in Quebec.
Businesses located in Quebec are required to keep the following information current at all times:
After incorporating your business, you will be required to get GST/QST tax numbers from Revenu Quebec. These numbers are required for collecting sales taxes.
Annual updated declaration: Businesses located in Quebec are required to make a public declaration every year stating that all of their information has been kept current throughout the allotted time frame. In the event that it is not, it is necessary to get it updated by submitting an annual updating declaration.
Payment of the annual registration fee: Following the year of incorporation, this cost is due on an annual basis thereafter.
Once a business has been established in Quebec, its vital information is required to be specified and kept up to date in a minute book. This minute book may be a real document or a virtual one that is stored online.
If you are handling the filing on your own, a minute book will not be prepared automatically; thus, it is vital to make sure that this step is not skipped.
