Business Incorporations
Rajwans Business & Entertainment Law takes the incorporation process seriously, and is dedicated to offering tailored advice for each situation. We take time to properly assess each client's needs and circumstances. Please read below the "Benefits of Incorporating". Please note that our listed fees apply to basic situations. Additional fees apply based on the complexity of the matter.
-
Federal or Provincial (Ontario) Incorporation of a Numbered Company - $399.99 + disbursements
-
Federal or Provincial (Ontario) Incorporation of a Named Company - $499.99 + disbursements *
*Includes one (1) NUANS name search.
**Important Note**
Section 20 of the Canada Business Corporations Act and section 140 of the
Business Corporations Act (Ontario) require that a corporation be properly
“organized” by preparing and maintaining its corporate records, which entails
completing the Minute Book.
Incorporation & Organization Fees
A company is “organized” when the shares have been issued, by-law(s) have been
approved, directors have been elected, officers have been appointed, and all the
relevant filings of the notices to the appropriate government bodies have been
made.
-
Federal Incorporation & Organization - $1199.99* (inclusive of disbursements)
* For companies with two (2) or less shareholders. The cost of adding each additional shareholder is $99.99.
-
Provincial Incorporation & Organization - $1299.99* (inclusive of disbursements)
* For companies with two (2) or less shareholders. The cost of adding each additional shareholder is $99.99.
Our prices for incorporation and organization legal services include the following:
-
Advise on the advantages and disadvantages of incorporating;
-
Advise on business name and possible trade-name and trade-mark issues;
-
Filing the Articles of Incorporation;
-
Registering all government notices with the Federal and Ontario government;
-
Perform one (1) NUANS search for named companies (each additional NUANS search is $99.99);
-
Preparation of the Minute Book (drafting the by-laws and corporate resolutions, preparing the registers and ledgers, and issuing the share certificates);
-
Advise on the corporate structure and shareholding options (voting, non-voting share structures); and
-
Advise on the advantages of a shareholders agreement, where applicable.
Benefits of Incorporating
The most common type of business is the corporation and
one of the greatest advantages of incorporating a
business is that there is limited liability of the
shareholders for the debts, obligations, and liabilities
of the corporation since the corporation is a separate
legal entity. This means that in case a corporation
becomes bankrupt, the shareholders will not lose more
than their investment into the corporation, subject to
some exceptions, such as when a shareholder has provided
a personal guarantee for all the debts and liabilities
of the corporation. In cases where a business operates
as a partnership or sole proprietorship, the partners or
individual himself or herself, as the case may be, is
personally liable for all the debts and liabilities of
the business.
Other advantages of incorporating include potential tax
advantages such as tax deferrals, and lower corporate
tax rates which are generally lower than personal income
tax rates. Moreover, a corporation has perpetual
existence which means that until dissolved or wound-up,
the corporation can change its shareholders, directors,
and officers.
A further potential benefit of incorporating is greater
access to capital since a corporation can issue shares
or sell bonds to attract capital. In addition, a
financial institution may feel that a loan to a
corporation is a safer investment than a loan to a
sole-proprietorship, although this may not always be the
case.
Since the corporation is a separate legal entity, a
corporation can sue or be sued, enter into contracts,
acquire assets and liabilities, and be found guilty of a
committing a crime.
Although corporations are more expensive to set up than
either a sole-proprietorship or a partnership due to
filing costs and professional fees, the potential
benefits related to tax rates, access to capital, and
limited liability may justify carrying on business as a
corporation.
Shortly after the business has been incorporated, the
next step is to organize it by completing the Minute
Book. A company is “organized” when the shares have been
issued, by-law(s) have been approved, directors have
been elected, officers have been appointed, and all the
relevant filings of the notices to the appropriate
government bodies have been made. Normally, a lawyer
will assist with the organization of the business, and
it is wise for each shareholder to consult with his or
her accountant on tax related matters in connection with
share ownership issues.
A business may be incorporated federally or
provincially. One benefit of incorporating federally is
that a named federal corporation is entitled to use its
corporate name in each province in which it carries on
business. A provincial corporation does not have this
name protection advantage, and in some cases, a
provincial corporation may be required to use another
corporate name in another province.
Please note:
- All figures in CAD$, do not include GST charges, and are subject to change without notice.
- All payments must be made by cheques. Wire transfers are recommended for clients outside of Canada.
- To schedule an appointment, please email info@rajwans.com or call 416.323.5777.
Copyright © 2006 - 2009 Rajwans Business & Entertainment Law. All Rights Reserved.