How to open a company in Canada, matters needing attention and fees

Limited and unlimited modes of opening a company in Canada

Sole Proprietorship in Canada

Sole proprietorship is the simplest one, whether it is the establishment process or the business model. Simply put, it means that an individual establishes a business name and conducts business under that name. A sole proprietorship and its holder are self-employed, and the holder is responsible for the company. Sole proprietorship is the mode of development for many start-ups and family-owned businesses.

Partnership in Canada

Partnerships contain two or more shareholders and are subject to corporate liability. A partnership is not legally a separate entity from the shareholders, so the partners are personally liable for the company's debts, etc. However, any partnership can be a limited company and in some cases can be a limited liability partnership model.

Incorporation in Canada

The limited company model is a separate entity from all shareholders, which can be incorporated under federal or provincial regulations, and the shareholders are not personally responsible for the company's liabilities. Canadian regulations require that businesses established as corporations need to employ a certain percentage of Canadians.

Extra-Provincial Corporation in Canada

Legal persons outside the province can only be incorporated at the provincial level, but can operate business in other provinces after incorporation. The Canadian government has not stipulated the number of Canadians that an out-of-province legal person enterprise needs to hire. However, each province has different requirements for the establishment of an out-of-province legal person enterprise. It is recommended that you study clearly before starting a company.

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The difference between a federal corporation and a provincial corporation in Canada

The biggest difference between a federal company and a provincial company is that there is only a limited company in the federal company, and there is no sole proprietorship or joint venture.

As for the fees, since a federal company needs to be registered at the provincial level at the same time, it is necessary to pay the federal application fee and the provincial application fee at the same time. And federal companies need annual inspections, and government fees need to be levied annually; provincial government fees depend on the provincial government. Finally, federally registered company names can be searched on the government's official website, and provincially registered company names are sometimes searched for a fee.

Steps to start a company in Canada

1. Register the company name

2. Design the articles of association of the company

3. Registered Entity Office

4. Open a corporate bank account

5. Register for Value Added Tax (VAT)

After the company registration steps are completed, the government issues the licenses and business licenses associated with the business. At the same time, the government will issue a business number and tax account, which is required to process any tax matters with the Canada Revenue Agency.

company name in canada

Generally speaking, there are two types of company names, namely:

• Legal Name
• Trade Name

The trade name is a name other than the legal name of the company, which can be registered and used freely. Registration is generally recommended if there are two of the following situations:

1. If the name of the owner of the sole proprietorship or the partner of the joint venture is the legal name of the enterprise, an additional trade name will generally be registered to facilitate transactions.

2. Digital companies generally register a trade name to facilitate operations.

The legal name refers to the name used when the limited company is registered, and the following three factors need to be considered when setting it:

• Distinctive
• Descriptive
• Legality (Legal)

Distinguishing means that the name can separate the company from other companies, in short, it cannot be repeated with other registered companies; descriptive means that the name can effectively express the business nature of the company, for example, a trading company can use the word "Trading"; Statutory means that the word can indicate the legal structure of the company, such as "Limited", "Corporation", etc. for a limited company.

Company name restrictions

Generally speaking, the name set for opening a company in Canada needs to meet the following requirements:

• Only use English, French or other Roman letters
• Words related to government agencies such as Canadian Armed Forces, Parliament Hill, RCMP, United Nations, etc. cannot be used.
• No affiliation, express or implied, with the Royal Family or the Government of Canada (whether federal or provincial), or a relationship of Sponsor and Support.
• Words such as College or University indicating the name of the school cannot be included unless the company has obtained the relevant license from the Department of Education.
• No words that mislead the public
• No obscene words are allowed
• No words that may offend the public
• If an individual's name is used as a business name, the individual's written consent must be obtained.

Trademark registration of a company in Canada

In Canada, any individual or company can register a trademark, and there are two types of trademarks:

• common trademark
• Certified trademark

Common trademarks include words, patterns, flavors, animations, packaging styles, sounds, colors, 3D patterns or shapes, etc., or a combination of these elements. Certification marks are trademarks that can be authorized to different persons or companies to indicate that certain goods or services meet the standards.

Applying for a trademark in Canada requires the following documents:

• Logo style (can be text or graphic, or a combination of both)
• Applicant's English name, address and contact details
• List of goods or services provided by the applicant

The registration of a trademark is valid for ten years from the date of registration and is renewed every ten years.

Trademarks that cannot be registered

In general, trademarks that include the following elements cannot be registered:

• first or last name
• Obvious descriptive (eg: Necessary description of "bright light bulb", "sweet ice cream", etc.)
• deceptive misrepresentation
• Country of Origin (If such a trademark is approved for use, it means that the registrant is the only one who can use the place name, making it unfair to others doing business in the area.)
• other languages or scripts
• Easily confused with other registered or pending trademarks (such as whether two trademarks look similar, or whether they are used to sell similar products or services, etc.)
• Excessive similarity to a prohibited trademark (if the applicant applies for a trademark with certain designs, such as official government agency emblems, Canadian flag, Royal Coat of Arms, Canadian Armed Forces emblem, RCMP emblem, Red Cross, United Nations emblem, other The emblem or national flag of the country is too similar, and it is easy to cause misleading or association)

The process of registering a trademark in Canada

1. Acceptance of applications (Formalities): After the applicant submits the application and pays the application fee, CIPO (Canadian Intellectual Property Office) will issue a notice to formally process the application. After receiving this notice, before the official trademark is issued, the applicant can use the trademark by adding a "™" identification in the upper right corner of the mark.

2. Examination: The applicant will generally receive an examination report within 6 to 15 months. There are three possible outcomes:

– Approval Notice: The submitted trademark can be officially used

– Request for revision: it may be that the description of goods or services does not meet the standard, and supplementary information can be submitted after revision

– Application rejected: generally because the applied trademark is too similar to the existing trademark, which is easy to cause confusion.

3. Advertisement: After the trademark is approved, CIPO will announce it in the official publication. If no objection is raised within two months after the publication of the announcement, the trademark application will be finally approved (Allowed)

4. Rejection: Within six months from the date of rejection of the application, the applicant may file a reply to the rejection. Applicants can apply for an extension for a period of up to six months. Replies must be submitted in English or French, and objection proceedings may take two years or more.

5. Final approval (Allowed): If there is no objection within two months after the CIPO announcement, CIPO will send a final approval notice (Notice of Allowance) three months after the announcement.

6. Registration: If the trademark itself is in use, the applicant can obtain the trademark registration certificate and other documents immediately after receiving the final approval notice; if the trademark has not been used, it needs to wait for the actual use before obtaining the registration. Certificate.

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