Starting a business in Ontario can be a daunting and confusing prospect, but if done correctly, you can benefit from the rewards of running a profitable, incorporated company. Incorporation gives you the extra layer of protection and legal advice that you may need as you embark on a new business venture. Here’s what you need to know when it comes to opening an incorporated company in Ontario.
Research the Incorporation Process
Before committing to incorporating your business, it’s important to do some research to understand the legal requirements and procedures involved. Start by checking out the Ontario government’s website, which has a wealth of information concerning the process. It’s also wise to engage an experienced business lawyer, who can answer any questions you may have and advise you on the best steps to take.
Choose the Right Business Structure
The type of incorporated business you choose will depend on the needs of your business. A well-established sole proprietorship or partnership may not benefit from additional legal protection offered by incorporation. In contrast, if you plan to open a new venture or hire employees, or if you have complex business needs, incorporating is usually the best option.
File the Incorporation Documents
Once you’ve filled out the proper documents, you can file them with ServiceOntario at a local office in Ontario. You will need to supply the necessary documents and payments in order to start the incorporation process. Depending on your business needs and the complexity of the situation, the filing process can take anywhere from a few days to a few weeks. In addition to filing the documents, you will also need to submit the application fee.
Choose Your Director
When opening an incorporated company in Ontario, you must make sure that the directors or managers of the company are qualified to operate the business. Make sure that you or your representative meets the necessary legal criteria to serve as a director. All directors must also take part in a corporate training program to increase their understanding of the business’ operations and obligations.
Register with Relevant Government Agencies
Incorporating your business is only the first step. Depending on the type of business, you may need to register with relevant government agencies such as the Canada Revenue Agency or Ontario’s Ministry of Finance. It’s important to keep up to date with any changes in legislation or regulations that may affect your business.
Maintain Compliance Requirements
Once you’ve incorporated your business, make sure that you stay compliant with all applicable laws, regulations and industry standards. This includes filing all of the necessary paperwork, paying any taxes or fees due and fulfilling the obligations of the corporate save-harbour provisions. It’s also important to ensure that your company is in good standing with the provincial and federal governments at all times.
Pick a Suitable Corporate Name
You’ll need to pick a unique corporate name for your company. Check with the Ontario government to make sure that the proposed name isn’t already registered by another business. If you’re setting up a corporation outside of Ontario, you’ll need to check with the appropriate provincial or federal body to ensure that the name isn’t in use.
Secure Proper Insurance and Liability Protection
It’s important to make sure that you have adequate liability protection and insurance in place to protect against risks and to provide the necessary financial cushion to absorb potential liabilities. This will help to protect both the company and the directors from any disputes or claims against the company. Make sure to get the necessary professional advice before purchasing an insurance policy and manage your coverage to reflect the needs of your business.
Obtain Financing for Your Business
After incorporation, you may need to obtain financing for long-term projects or to sustain liquidity. There are a number of ways to obtain financing for your business, such as government grants, lines of credit, private loans and venture capital. Before applying for financing, make sure that you have a solid business plan in place and the necessary documents to back up your application.
Choose Your Business Location
When opening a business in Ontario, you must find a suitable place to operate it from. Consider the local demographics and the availability of resources in the chosen location. Make sure that your business can access necessary services, such as transportation, offices and warehousing. You may also need to apply for a business licence, depending on the type of business and the city or municipality in which it operates.
Establish Your Business Online Presence
With the rise of digital marketing, it is more important than ever to establish your business’ presence online. Determine the type of website, blog or social media account that will best represent your business. Develop a comprehensive marketing plan that includes both organic and paid campaigns. Measure the performance of each marketing initiative in order to optimize your budget and resources.
Find a Professional Accounting Solution
When running a business, it’s important to maintain accurate records and financial statements. Make sure to hire a professionally qualified bookkeeper or accountant to manage your company’s finances. Look for a reputable accounting firm that provides personalized and comprehensive services to ensure that you are compliant with all necessary regulations.
Develop an Internal Risk Management Plan
Businesses encounter a variety of risks. Make sure to develop a comprehensive risk management plan that outlines the steps that should be taken in the event of potential risks. This will help you to mitigate those risks and ensure that your business can remain profitable and resilient in the face of any unforeseen issues.
Strengthen Corporate Governance Practices
Having good corporate governance practices in place will help to ensure that your business is compliant with industry rules and regulations. Make sure to have a board of directors or directors in place who can help to guide the company’s strategy and operations. In addition, you may need to create a code of conduct and anti-corruption policy to reflect the values of the business.
