How to Incorporate as a Nonprofit Corporation in Canada
The non-profit sector is one of the fastest growing sectors in Canada. There are about 150,000 non-profit organizations operating in Canada. Incorporating a non-profit organization allows you to build a new community based effort to address specific issues and needs in society. Incorporating a non-profit will add structure to your organization's operations and allow access to funding. The application process does take time and preparation but is straightforward. The steps below address the key issues and steps you need to take before submitting your application.
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Things You'll Need
- Application for incorporation form
- Statuary declaration form
- NUANS name search report
- Proposed by-laws
- Filing fee
Instructions
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1
Determine the objectives and key activities of the organization. Consider if you will prioritize objectives that will allow you to apply for charitable status. The statement of purpose should also include the geographic scope. Decide on the address of the head office.
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2
Collect the personal information of the initial directors of the non-profit corporation. There is a 3 person minimum. All directors must sign the application for incorporation.
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3
Complete the by-laws, the basic rules that will govern the non-profit corporation. This includes rules about: membership, election and meetings of board of directors, annual general meetings, amendments to the by-laws and appointing the auditor.
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4
Decide on the name of the corporation and perform a Canada-biased NUANS® name search to assure the name is available. You will need to send the report to Corporations Canada with the rest of the application.
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5
Write the cover letter requesting letters patent. It should include a list of enclosed documents, the address of the non-profit organization's head office and be signed by one of the directors.
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6
Sign the statuary declaration before a commissioner of oaths stating all content of the application for incorporation is true. Only one director needs to sign the statuary declaration.
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Submit the application including: the cover letter, 2 copies of the application for incorporation, 2 copies of the unsigned by-laws, the NUANS report, statuary declaration, and the filing fee to Corporations Canada online or by mail. If your application is approved you will receive the non-profit organization's letters patent.
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Call the organization's first general meeting, adopt the by-laws and elect the board of directors. Minutes from the meeting and the adopted resolutions must be sent with your initial declaration to Corporations Canada to complete the incorporation.
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Tips & Warnings
If the organization's activities are based in one province, it might be quicker and less expensive to incorporate provincially.
To maintain an incorporated non-profit corporation you will need to send financial reports to the federal government every year.
Applying for incorporation is different than applying for charitable status. Each process must be done separately.
References
- Photo Credit profit image by Andrey Kiselev from Fotolia.com
