British Columbia Incorporation
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Building a business in British Columbia? You should be aware of the legal and financial benefits that provincial incorporation in B.C. brings. Depending on the type of business you have, incorporating provincially might even be a requirement.
The Benefits of British Columbia Incorporation
Incorporating can give your business easier access to capital and funding, the ability to save money with unique tax planning strategies, and strengthened name recognition. Additionally, the business owners (i.e. the shareholders) will benefit from limited personal liability. Unlike federal incorporation, there are no residency requirements to incorporate your business in British Columbia.
Business Structure for Business in British Columbia
Choosing the right business structure is one of the first decisions when starting or expanding a business in British Columbia. While a sole proprietorship may be suitable in some circumstances, many business owners choose British Columbia incorporation because it creates a separate legal entity. A corporation can own property, acquire assets, enter into contracts, and continue operating independently of its shareholders.
The British Columbia Incorporation Process
The British Columbia incorporation process begins with choosing a business name or incorporating as a numbered company. The next step is preparing the required incorporation documents, including the articles of incorporation, incorporation agreement, and the company's articles, which establish the corporation's internal rules. An incorporation application is then submitted to the BC Corporate Registry. Once the filing is accepted, the corporation receives a certificate of incorporation and an incorporation number, confirming that the company is incorporated under the Business Corporations Act.
Company's Articles and Corporate Records
After a British Columbia incorporation is complete, corporations must comply with a number of ongoing obligations under the BC Business Corporations Act. Every corporation is required to maintain a registered office while keeping required corporate records up to date. These records typically include the company's articles and corporate records, the central securities register, and a transparency register where applicable. Maintaining accurate records helps ensure the corporation remains compliant with provincial legislation.
FAQs
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Without provincial incorporation, entrepreneurs may find that they’re unable to raise capital from investors because their company doesn’t appear professional or credible. Unincorporated business owners can face excessive personal tax and expose themselves to unnecessary liability.
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The first step is identifying who will serve as directors of the company and what share classes are required. Consulting with other business advisors such as tax advisors or accountants is also advised. The final steps before incorporating in British Columbia are registering a corporate name and drafting the articles of incorporation that will govern the company.
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Once all the required information is gathered, provincial incorporations can be processed as quickly as 3 to 5 business days. Numbered companies can be incorporated within 48 business hours.
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Before starting the provincial incorporation process in British Columbia, you’ll need to gather contact information for all directors and shareholders including legal name, date of birth, occupation, citizenship status, tax residency, mailing address, email address, phone number, and copies of government-issued photo ID.
Need Advice About British Columbia Incorporation?
When it’s time to incorporate your business in B.C., Parr Business Law can help you navigate the incorporation process with confidence and clarity. Our lawyers have the specialized knowledge to provide you with reliable and candid legal advice so you can take your business to the next level. Schedule a consultation call with us today to discuss the future of your business.