Actions to Take After Receiving Your Incorporation Certificate

Dec 22, 2023

This guide on steps to take after incorporating a company is aimed at individuals who have recently completed the incorporation process in Canada. It provides answers to the question: “What actions should I undertake now that I have my incorporation certificate?” After the incorporation phase is concluded, there are several crucial actions you need to take to ensure your newly established company begins on a solid footing.

 

1. Corporate Minute Book

Once you’ve obtained your certificate of incorporation, it’s essential to begin maintaining a corporate minute book. This is because the law mandates the upkeep of certain corporate documents at your company’s record-keeping office.

In addition to every document you put together to register your corporation, your minute book should contain items like:

  • A registry of directors
  • A list of members
  • A securities log
  • All the corporate bylaws
  • Records of all business meetings
  • Replicas of any documents submitted to governmental bodies

You have the choice to organize this in a basic binder or to enlist the services of a professional to compile and care for your corporate minute book. Regardless of the method, given that your minute book serves as the central repository for the corporation’s documents and a comprehensive account of its dealings, ensuring its completeness and orderly arrangement is crucial.

 

2. Corporate Seal

In today’s legal landscape, holding a corporate seal is not a mandatory requirement. However, numerous corporations continue to acquire and utilize them for stamping the company’s name onto official paperwork. Additionally, it’s common to encounter banks that require every contract made with your corporation to bear this official seal. To circumvent potential complications down the line, securing a corporate seal is a wise decision.

 

3. Corporate Bylaws and Organization

With your corporation now established, it’s essential to structure it properly. This structuring process will be recorded in the corporation’s minute book.

The corporate bylaws, which are basically rules defining how the corporation will be run, will cover everything from the rights and duties of officers to various procedural aspects.

To initially organize the corporation, there will be either a meeting of the directors or shareholders, or resolutions in writing that all directors or shareholders must sign. Regardless of the method chosen, the following steps will be taken:

  • Officially confirm and accept the incorporation documents
  • Officially confirm and accept the corporate bylaws
  • Choose directors
  • Designate corporate officers
  • Distribute shares to shareholders
  • Officially confirm and accept any additional necessary resolutions for the corporation’s organization

 

4. Corporate Bank Account

A corporation, being an independent legal entity, necessitates its own bank account. To establish such an account, the bank will ask for specific documentation related to the corporation’s formation, including the articles of incorporation. It might also demand the passing of certain banking resolutions. It’s important to highlight that every authorized signatory of the corporation must complete paperwork at the bank as a prerequisite to gaining access to the corporate account.

 

 

5. Get Any Other Required Permits or Licenses

As your corporation exists as an independent legal unit, it requires a distinct business number. This number is vital for it to engage with the federal government regarding GST, corporate income tax, and matters related to import/export, alongside managing deductions for employer payroll.

Furthermore, your newly established corporation might have to sign up for PST to handle the collection and remission of provincial sales taxes. Additionally, registering for workers’ compensation insurance, provincial employer health tax, and acquiring relevant provincial and municipal permits might be necessary.

 

 

5. Hire Employees

Should your business be in the position to employ one or more individuals, it’s mandatory to enroll them and arrange for deductions from their pay for income tax, employment insurance, and contributions to the Canada Pension Plan (CPP) through the Canada Revenue Agency.

Having completed these steps, everything is in place. Your newly established corporation is now prepared to operate within Canada.

 

Need more information? CBES is here to assist you; feel free to contact us for expert guidance. We will help at all stages and make the process of forming your company as fast and simple as possible.

You can find Contracts and Documents for Business Owners in Canada here https://www.businessdocs.ca/

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