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Benefits of incorporating

From: Innovation, Science and Economic Development Canada

Incorporating your business creates a new legal entity, called a corporation.

Transcription — Federal incorporation

[A woman business owner is standing in her pho enterprise, with a man and child at her side.]

Narrator: Incorporating.

[The woman shakes some spices into two steaming bowls of pho.]

Narrator: Whether you are starting a business, or thinking about expanding, the word — and the prospect — can be intimidating.

[The woman shows concern and thoughtfulness.]

Narrator: After all, your business "journey" involves many stages…

[The woman is thinking while four images representing equipment, staff, income and cash flow pop on screen around her. Key: Is it right for you?]

Narrator: … adding equipment, adding staff, building income and cash flow. We are pretty sure the word "incorporation" has come up — and you're likely asking yourself if it's right for you.

[An image of Corporations Canada's website appears on a computer monitor.
Key:

  • More than 40,000 new incorporations per year
  • Simple, fast, painless]

Narrator: We are Corporations Canada, and we help over 40,000 businesses become federally incorporated every year, making the process simple… fast… and painless.

[On a computer screen, the words "Enter Business Name: Pat's Phopup" appear, with a green checkmark next to it and a maple leaf in the background. Key: Operate under one unique name nationally]

Narrator: So why incorporate with Corporations Canada? With federal incorporation, you have the right to use the name across Canada.

[On a computer screen appears a green-coloured dollar sign within a downward arrow. Key: Lower tax rates]

Narrator: You'll most likely lower your tax rate. Corporations are taxed separately from their owners.

[On a computer screen appears a shield with a dollar sign in its center. Key: Limited liability]

Narrator: You will be able to limit your liability.

[On a computer screen appears a vault. Key: Easier access to financial support]

Narrator: And… you may enjoy easier access to financing. As a corporation, you may be able to borrow money at lower rates.

[On a computer screen appears a clock, with two green arrows pointing toward the clock. Key: Incorporate within one day]

Narrator: Online incorporations cost $200 and you can be incorporated within one business day.

[On a computer screen appears an envelope with a small "1" in its top right hand corner. Key: Email confirmation within minutes]

Narrator: Within minutes of your incorporation, we will send an email that includes your business number, along with links to important information.

[The owner is holding a tablet (split-screen) with friendly-looking officer at computer workstation.]

Narrator: We are proud to offer you direct access to knowledgeable officers who can help answer your questions.

[The owner is holding a tablet and her male partner (in dark apron) stand offering bowls of pho to camera.]

Narrator: Corporations Canada: we can help you get back to doing the real work—building your business' future.

[On screen, two icons appear.
Website icon: www.canada.ca/federal-incorporation
Telephone icon: 1-866-333-5556 (toll-free in Canada)]

Narrator: Here's how reach us:

Simple, fast and affordable.

Incorporate online for $200 and get your certificate within one business day.

Why federal incorporation?

Operate under one unique name right across Canada

This is important if you expand your business to multiple provinces or territories and want to use the same name.


Global recognition

Federal corporations are recognized around the world ‒ an important consideration if you plan to expand outside Canada.


Flexibility

Your official business address can be anywhere in Canada, and you can hold annual meetings digitally and anywhere in the world.

Benefits of incorporating provincially and federally

Easier access to capital

Corporations can borrow money at lower rates. They can also raise money by selling shares or bonds to investors (called shareholders).

Lower tax rates

Corporations are taxed separately from their owners. Corporate tax rates are generally lower than personal income tax rates.

Limited liability

Shareholders are not responsible for a corporation's debts. If your corporation goes bankrupt, your shareholders only lose up to what they invested.

Separate legal entity

Corporations have the same rights as a real person, including owning property, getting loans, and entering into contracts.

Continuous existence

Corporations live on until they wind up, amalgamate, or give up their charter (for example, when they go bankrupt). With other business structures, a business stops existing when the owner dies.

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