In Canada, a business can be a Sole Proprietorship, meaning that one individual is setting up a business, a Corporation, in which the business has its own individual identity that is separate from its directors or shareholders, a Partnership, which is a business created by two or more individuals. Within each of these categories there are other subcategories that determine a business or business owner’s liability. Our experienced lawyers can help you to determine which option is best for you and your business, so call our Thornhill, Ontario office today at 905-597-8529.
What Laws and Entities Govern Businesses and Corporations?
There is quite a lot of variation among the common law and civil codes that govern setting up and operating businesses in each province and territory in Canada. Furthermore, there are 14 different statutes (one federal, three territorial, and ten provincial) that could be the primary governing legislation for a corporation. Often, the choice of whether to incorporate federally or provincially will be based on many considerations, such as scope of business and the framework, federal or provincial, that is most beneficial. For federal corporations, the governing statute is the Canada Business Corporations Act (CBCA). The CBCA and its accompanying regulations, or their provincial/territorial equivalents, govern incorporation, the relationship between the corporation and its various stakeholders (including shareholders, directors and officers), and other matters. Corporations Canada is the federal regulator of corporations incorporated under the CBCA. As you can see, starting and maintaining a business can be quite a daunting and complicated task, and a lawyer from K&Y Law, P.C. can help to make sure all is done correctly to protect both you and your business.
What Documents are Required to Set Up a Corporation?
All corporations must establish Articles of Incorporation to exist. In addition to articles, corporations can have by-laws which set out various governing practices and procedures, including guidelines for directors’ and shareholders’ meetings, directors’ responsibilities and banking arrangements. Separate shareholders’ agreements are often used to define the relationship of the shareholders of a corporation.
How Can a Lawyer Help in This Process?
Navigating through the common laws and civil codes governing business and corporations at both the federal and the provincial level can be overwhelming and tedious. After establishing a business or corporation, there are other legal considerations, such as business transactions and commercial agreements, capital funding, labor and employment relations, litigation and dispute resolution and public contracts. Our commitment at K& Y Law, P. C. is to represent your interests, advance your goals, and preserve our peace of mind. Call us today at 905-597-8529!