Steps to Set Up a Company:

Canada

Choose a Business Structure

1. Sole Proprietorship: Single owner, full liability.
2. Partnership: Two or more partners, shared liability.
   • General Partnership: Equal responsibility and liability among partners.
   • Limited Partnership: General partner with unlimited liability and other limited partners with liability up to their investment.
3. Corporation (Incorporation): Separate legal entity, limited liability.
   • Federal Corporation: Incorporated under federal law, allowing business across Canada.
   • Provincial Corporation: Incorporated under provincial law, allowing business within a specific province.
4. Cooperative (Co-op): Owned and operated by its members, with shared decision-making.

Register Your Company

1. Choose a Company Name: Ensure it is unique and follows naming regulations.
   • NUANS Name Search
2. Prepare the Articles of Incorporation: Outlining the company’s structure and rules.
3. Register with the Federal or Provincial Government: Submit the incorporation documents and pay the registration fee.
   • Corporations Canada (for federal incorporation)
   • Provincial websites (e.g., ServiceOntario)
4. Obtain a Business Number (BN) from the Canada Revenue Agency (CRA): For tax and business identification purposes.
   • Canada Revenue Agency
5. Register for Goods and Services Tax (GST)/Harmonized Sales Tax (HST) with CRA: If applicable.
   • GST/HST Registration

Open a Canadian Bank Account

1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.
   • BizPaL

Comply with Canadian Employment Laws

1. Employment Contracts: Draft contracts that comply with federal and provincial labor laws.
2. Register for Payroll Deductions with CRA: For tax withholding and social security purposes.
   • Payroll Deductions
3. Register with Workers' Compensation Board: For worker’s compensation insurance.
   • Provincial websites (e.g., WSIB Ontario)
4. Health and Safety Regulations: Follow guidelines from the Canadian Centre for Occupational Health and Safety (CCOHS).
   • CCOHS

Accounting and Reporting

1. Set Up an Accounting System: Maintain accurate financial records.
2. Annual Financial Statements: Prepare and file annual financial statements.
3. File Annual Tax Returns: Submit annual tax returns to CRA.

Laws and Regulations to Consider

Corporate Law

1. Canada Business Corporations Act (CBCA): Governs the formation and operation of federal corporations.
2. Provincial Corporate Laws: Govern the formation and operation of provincial corporations.

Tax Law

1. Income Tax Act: Governs income tax for individuals and companies.
2. Excise Tax Act: Governs GST/HST regulations.

Employment Law

1. Canada Labour Code: Governs employment standards for federally regulated businesses.
2. Provincial Employment Standards Acts: Govern employment standards for provincially regulated businesses.
3. Occupational Health and Safety Act: Sets health and safety standards for workplaces.

Data Protection Law

1. Personal Information Protection and Electronic Documents Act (PIPEDA): Governs data protection and privacy.
   • Office of the Privacy Commissioner of Canada

Environmental Law

1. Canadian Environmental Protection Act: Governs environmental protection and sustainability practices.
   • Environment and Climate Change Canada

Intellectual Property Law

1. Trade-marks Act: Governs the protection of trademarks.
2. Patent Act: Governs the protection of patents.
   • Canadian Intellectual Property Office (CIPO)

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Canada. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.