How to Incorporate a Small Business in Ontario
Incorporating a business has several advantages. Ontario Corporations typically have limited liability meaning that the shareholders are not liable personally for the debts of the business. In addition, Ontario Corporations live on even after the original incorporators pass away or move on to other business ventures. Companies looking to incorporate in Ontario must comply with Ontario's Business Corporations Act.
Other People Are Reading
Instructions
-
-
1
Decide whether to incorporate your business with an assigned number or with a business name. Corporations with assigned numbers will have a business name such as 857309 Ontario Inc.; the number will be given to the corporation by Ontario's Companies and Personal Property Security Branch. Assigned number corporations enjoy a speedier incorporation process. If you decide to use an assigned number, skip Steps 2 and 3.
-
2
Choose a name for your corporation. Ontario law requires that the name end with one of the following: Incorporated, Inc., Corp., Limited, Limiteé, Ltd., or Ltée. The name can be in English and/or French.
-
-
3
Obtain a NUANS report verifying that no other Ontario corporation has a name similar to the one you chose in Step 2. NUANS is a computer-based search engine that compares proposed names with existing company names. Reports costs $20 Canadian Dollars. You can obtain this report by visiting nuans.com; a link is in the resources.
-
4
Complete the Articles of Incorporation. The form is available in the resources below. You must complete two copies of this form.
-
5
Draft a cover letter. In the cover letter, explain that you intend to incorporate your business. Include your name, your address, and a telephone.
-
6
Pay a filing fee of $360 Canadian Dollars. Checks must be made out to the Ministry of Finance.
-
7
Send two original copies of the Articles of Incorporation, your cover letter, a NUANS report (if did not choose an assigned number name), and the filing fee to the following address: Companies and Personal Property Security Branch, 393 University Ave., Suite 200, Toronto, ON M5G 2M2.
-
1
References
Resources
- Photo Credit business is business - cliche image by Jeffrey Zalesny from Fotolia.com
