Register Company in Toronto
The company registration process in Toronto is straightforward and to register company in Toronto business owner needs to understand the procedure first. However, incorporating the company requires compliance with various regulations which can make the process more complicated. With Tetra Consultants at the wheel, you will be able to dedicate your time and energy to different aspects of business that might need your assistance. Our ultimate goal is to provide satisfactory services to our clients and make the whole process seamless and hassle-free for our clients. Our service package includes everything you will require to set up a business in Toronto:
- Register company in Toronto
- Local company secretary and registered address
- Opening a local or international corporate bank account
- License applications (if required)
- Annual accounting and tax services
What are the benefits of registering a company in Toronto?
- The corporate tax levied by the authorities is mostly less than the personal income tax levied in order to take advantage of the tax regime and save more on the taxes you need to generate a good amount of profit. If the owner made drawings from the business it helps in reducing the earnings of the business. Tetra Consultants highly skilled and experienced staff in taxation can assist the business in saving more money while adhering to laws.
Favourable environment for business
- Toronto provides a favourable business environment for businesses to flourish. A competitive environment is provided to businesses, especially start-ups, by offering low net effective tax rates. Additionally, credit is offered to businesses at very low rates, along with multiple investment opportunities.
Lifetime capital gain exemptions
- A company incorporated in Toronto can claim a lifetime capital gain exemption on the sale of qualified small business corporation shares. Moreover, lifetime capital gain exemption is not only a one-time exemption but has a cumulative lifetime limit. This implies that the entity can use this exemption until the monetary limit of CAD $892,218.
A strong regime of Intellectual Property Rights (IPR)
- Toronto experienced strong Intellectual Property Rights (IPR) which provides protection for innovation. The legislative framework keeps on improving and evolving, making its administrative processes smoother and simpler in protecting businesses operating in Toronto.
Advantages of Free Trade Agreements (FTAs)
- Toronto is a province in Canada that enjoys free trade agreements that enable businesses in Toronto unhindered access to their markets. Toronto also enjoys the North American Free Trade Agreement (NAFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the EU’s Comprehensive Economic and Trade Agreement (CETA) which offers access to these significant markets at favorable terms.
Can a foreigner register company in Toronto?
- Yes, foreigners can open a company in Toronto and Canada as a whole. The Canadian government welcomes foreign investors and provides opportunities for them to start businesses in Canada. Anyone from local to foreign investors can begin a venture in Toronto. However, the registration process for foreign companies in Toronto is governed by the Extra-Provincial Corporations Act. Foreign entrepreneurs and investors who wish to register their businesses in Toronto will require a local address in Canada to facilitate mail and communication at that corresponding address. Some specified businesses need a Canadian citizen or permanent resident to have a minimum of 25% of shares specified in most provincial corporate statutes.
- Moreover, there are many additional licenses such as registration for a federal business number, provincial employer health tax and worker’s compensation, provincial sales tax account, and other provincial and municipal licenses. Our team of experts understands your business needs and requirements before advising your business. We aim to fulfill all the business requirements of our clients to provide them satisfaction through our business services.
How long does it take to register company in Toronto?
- Tetra Consultants can help you to register business in Toronto within 2 weeks. After presenting all the due diligence documents of directors and shareholders our team will search for the availability of your preferred company name and prepare all required documents for incorporating a company in Toronto.
- Throughout the process of incorporating your company, you can register your business in Toronto without the need to travel to the country.
- Every state has its own rules and regulations that affect the company’s registration timeframe. Thus, Toronto has its regulations that dictate the duration of the company registration process. Tetra Consultants ensures the incorporation of business in Toronto within the stipulated time.
- After Tetra Consultants has registered your company, you can expect to receive the documents of your company which include a certificate of formation, Memorandum, and Article of Association as well as the register of directors and shareholders.
- Moreover, Tetra Consultants can help you with the opening of a corporate bank account within 4 weeks of registering your company in Toronto. The bank account can be opened with either a local or international reputable bank according to the client’s preference.
- After the process of incorporation and opening of a bank account, you can expect your company to be fully functional and operational. The company gets ready for business within 6 weeks from engaging with Tetra Consultants.
- An important caveat to note is that the duration of the company registration process is contingent on the state and your business activity. The abovementioned timeline is a generalized timeline of the extensive experience
Types of business structure available to register company in Toronto
- Before you commence to register a company in Toronto, it is essential to understand the different kinds of business structures prevalent in the state. Toronto is a home for many business structures which include sole proprietorships, partnerships, corporations, and cooperatives.
- Before starting the operations, Tetra Consultants will understand your business before making any recommendations. For better understanding, we might consider the type of business, business activity, business structure, tax obligations, and nationalities of shareholders and directors. With the help of the gathered information regarding your business, Tetra Consultants can advise on various aspects of business to grow and expand the business.
- A sole proprietorship is a kind of business structure that has only a single person acting as the owner of that business. Unlike other prevalent structures, a sole proprietorship does not have a separate legal entity from its business which makes the owner personally liable for all debts and obligations of the business. The incorporation of such a business structure is easy and simple to set up and has limited paperwork involved for incorporation. Along with this, there is no corporate tax levied on such business structure and only personal income tax is levied.
- If you are looking to set up a small business (minimart, art studio, bakery, etc.) by yourself that includes the advantages of an easy startup and complete control, sole proprietorship may be the right business form for you.
- To operate a sole proprietorship, registration with the state is not necessary. However, if a name that is different from your own is adopted, you will have to formally register with the state.
- A partnership business is a business structure that involves two or more people to operate and manage the business. There prevail three types of partnerships which are general partnerships, limited liability partnerships, and limited partnerships. The general partnership involves all the partners personally liable for the business debt and credit. Whereas, limited partnerships and limited liability partnerships allow all the partners to have limited liability and one partner to be a general partner who is also the manager of the company.
- The requirements for registering a limited partnership in Toronto include obtaining professional advice on the business and tax law implications of the intended business structure, conducting a name search confirming the uniqueness of the proposed LP name, completing and filing the government application form, and appointing a power of attorney.
- Tetra Consultants as an experienced and dedicated team can help you with various ancillary business services that will help the business to grow and expand. The partnership business structure involves various legal and compliance requirements that are required to be complied with for the legal status of the business. Our executives help you to understand various legal requirements and compliances.
- Corporations are those legal entities that separate the business from its owners and managers. There are two options for incorporating a business: federally or provincially. The corporations are providing limited liability protection to the business owners, separate legal entity status, and access to financing and investment opportunities.
- The liability of corporations depends on the business itself and eliminates any risk of loss of personal property of owners or managers. The registration of such business structure includes registration with the Provincial Trade Register in Ontario. In addition, the business is also required to comply with NUANS name search to determine if the name is available. Further, the documents required include a name search report, articles of incorporation, lease agreement or title deed of the registered office, and information on the board of directors The corporations are required to file the tax under the corporate tax return(T2).
- Moreover, the corporations require a minimum of 1 director for non-public companies and at least three directors, with at least two of them not being officers of the company in a public company. If the corporation has fewer than 4 directors at least one director is required to be a Canadian citizen. Applications for building permits can be obtained through the City of Toronto. And lastly, the requirement of opening a bank account is also mandatory for the incorporation of such a business structure.
- Tetra Consultants can help in attaining various offshore financial licenses corporate bank account opening and various services that a business needs in order to incorporate corporations in Toronto.
- A cooperative is a corporation that is organized and controlled by its members. It can be set up to operate for profit or as a not-for-profit. Just like a corporation, it provides limited liability protection to business owners, separate legal entity status, and access to financing and investment opportunities. The members of the cooperative must comply with the Co-operative Corporations Act, R.S.O. 1990, c. C.35. The rules and the policies of the members must be made available to all the members. The cooperatives are required to audit financial statements and annual operating budgets, also for housing cooperatives charges are set annually, and approval from the cooperative’s by-laws, rules, and major policies.
- Cooperative is a suitable business structure for those people who share similar social interests or economic needs and who want to operate a business democratically. In Canada, all cooperatives must be incorporated. The cooperative needs to provide 10 days prior notice to its members before arranging the general meeting. The liability of the members depends on the member’s specific roles as outlined in either federal or provincial legislation depending on how the co-op is incorporated. Moreover, the tax regime for the cooperatives is classified as a for-profit, not-for-profit, or charity under the federal Income Tax Act. For for-profits and not-for-profits cooperatives the filing of T2 tax returns and for charity cooperative filing of T3010 tax returns are required.
How to register company in Toronto?
The process to register company in Toronto is similar to the aforementioned overview but are contingent on different business structure and industries. Nonetheless, Tetra Consultants has generalized the process to be enumerated as follows:
Step 1: Choose a business name
- In order to incorporate the business in Toronto the business owners and operators need to choose a unique business name for the company. To eliminate any chances of confusion or conflict to avoid similar or deceiving trade names. The online provider search engine of NUANS databank will provide a list of existing businesses, corporations, and trademarks across the state. Tetra Consultants can assist in the reservation of business names through our business support services.
- Tetra Consultants along with providing company secretarial services and local registered addresses will additionally assist with the provision of nominee director services in case any of the states and business activity of the clients requires having a residential director.
Step 2: Drafting of incorporation documents
- To register a company in Toronto businesses are required to comply with various documentation requirements which may vary according to the business structure and operations:
- A small or private business in Toronto needs to prepare the pre-requirement of documents which includes completely drafted articles of incorporation, which provide information such as a maximum of two or three classes of shares, information regarding a minimum of 1 director who is at least 18 years old at the time of the appointment, and a corporate name.
- If the entrepreneur or the business owner decides to incorporate a corporation, a custom incorporation plan is to be availed which includes documents such as the name of the company, share structure of the company, number of directors of the company, and restrictions that might be imposed on the entrepreneur. These documents are to be submitted to the appropriate governmental authority along with the fees of incorporation which is mandatory to be paid.
Step 3: Registering company with a local institution
- After collecting all the documents and following all the rules and regulations an individual can register their business with the Ministry of Government and Consumer Services’ Ontario Business Registry. This stage comprises multiple requirements, and here our team can assist you with various business services and also register your business with the governmental authority.
- Upon successful registration of your company, you will receive the Certificate of Incorporation and a certified copy of the company’s Articles of Organization.
Step 4: Apply for business licenses
- To operate the business in Toronto you may need to acquire online business permits and licenses. There are many specific licenses which are available for specific businesses. Within the city of Toronto, licenses are required for many types of businesses. In Toronto, operating licenses are issued by the Municipal Licensing and Standards Division of the City of Toronto. Other types of licenses which businesses might be required to obtain are provincial licenses and federal licenses.
- Tetra Consultants will completely assist your company in applying for a business license.
Step 5: Determining tax requirements
- For taxation requirements, businesses need to register with the Canada Revenue Agency. The taxation authority issues a business number which is a reference numbering system that covers four business accounts. The accounts include business accounts with gross annual sales of CAD $30,000 or more to register for Harmonized Sales Tax (HST). Along with this, businesses also have import/export accounts, corporate income tax, and payroll deductions.
- Once your company has been registered for tax, Tetra Consultants will continue to assist your company in meeting its annual accounting and tax obligations.
Step 6: Corporate bank account opening
- Once the entity is duly registered, you can proceed with the corporate bank account opening.
- Tetra Consultants will assist in consolidating the documents and opening a corporate bank account with a reputable bank of your choice.
- For many banks in Toronto, traveling to Toronto can be a hassle for many business owners to open a bank account in a local bank. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or request a waiver.
- Once the bank account has been successfully opened, Tetra Consultants will courier the Internet banking token and access codes to your preferred address.
What are the minimum regulatory requirements to register company in Toronto?
Appointing local director
- According to the Business Corporations Act (Ontario), at least one director of an Ontario company must be a resident Canadian. This implies that the director is required to be a Canadian citizen, a permanent resident of Canada, or anyone who has acquired permanent resident status and is considered to be an ordinary resident in Canada.
- If required, Tetra Consultants can assist you with our client nominee director services in Toronto, Canada. Our legal team can prepare a legal agreement to be signed between all parties, ensuring that the nominee local director is passive and does not have any decision-making power in your company
- Each type of business structure requires specific requirements. However, the general requirements to register company in Toronto are as follows:
- A minimum of 1 resident Canadian director
- A minimum of 1 shareholder of any nationality
- A minimum paid-up capital of S$1 for initial setup
- Registered address in Toronto for communication purposes
Specific requirements for private limited company
- There are many requirements for private limited companies incorporated in Toronto. There are minimal requirements to be met if you are considering how to register a corporation in Toronto:
- For most private companies in Toronto, there is no minimum paid-up capital.
- A private limited company can be registered by a minimum of one shareholder, and there is no maximum number of shareholders required by law
- There is no specific requirement for a local director for a private limited company in Toronto
Documents required to register company in Toronto
The below-mentioned list is the generalized requirement of documents which might vary depending on the business activity and industry. Thus, to incorporate a business in Toronto documents require include but are not limited to: –
- Articles of Incorporation
- Name Search Report:
- Lease Agreement or Title Deed
- Information on the Board of Directors
- Federal Business Number
- Address Proof for Foreign Shareholders
- Passport/Visa Copy
- Canadian Address Proof
- Information on Paid-Up Capital
Accounting and tax obligations for companies in Toronto
- Accounting and taxing considerations are important aspects of incorporating your business in Toronto. By outsourcing your accounting and taxation obligations to Tetra Consultants you can be confident that you will be in the best hands with our team with dedicated and experienced staff to care for your financial statement, corporate tax returns, and audit compliances that are timely completed without the need for you to travel Toronto and hence providing a seamless and hassle-free working experience to the business.
- Moreover, outsourcing accounting and tax needs can allow Tetra Consultants to reduce our overhead costs while assuring timely reporting and filing to ensure that all the compliances are being met. Before engaging with our accounting team we will also update you about all the mandatory deadlines and expectations which are required to operate business in Toronto. After that, we will prepare all your necessary filings in advance to ensure that the stipulated deadline is met. Please make sure that the below-mentioned requirements are and generalized form of requirements for Toronto.
Accounting obligations for businesses include:-
Preparation of financial statements
- Businesses operating in Toronto are obligated to prepare annual consolidated financial statements. These statements must include all those transactions that occurred, recorded, and reported.
Compliance with money laundering and terrorist financing obligations
- Businesses in Toronto need to ensure that accounting compliances are met and the specific obligation under the Proceeds of Crime (Money Laundering) and Terrorist Financing regulations are fulfilled. The obligation must be fulfilled to prevent money laundering and terrorist financing activities.
Compliance with accounting standards
- Businesses are needed to comply with the accounting standards and auditing requirements. Non-Canadian business owners and entrepreneurs have to prepare their financial statements according to the International Financial Reporting Standards (IFRS) without reconciliation to Canadian Generally Accepted Accounting Principles (GAAP).
Tax obligations for businesses include:
Corporate income tax
- Corporations in Toronto are subject to Canadian corporate income tax on the income incurred worldwide. Whereas, non-resident corporations are subjected to corporate income tax on the income incurred in Canada and on those capital, gains arising from the disposal of taxable properties under Canadian jurisdiction. The corporate income tax depends on the general business activity and may range between 23% to 31%.
Corporate minimum tax
- Corporations incorporated in Toronto may also be subjected to the corporate minimum tax. The corporate minimum tax is applied at 2.7% and applies when total assets are at least CAD $50 million and have annual gross revenue of CAD $100 million or more on an associated basis.
Province/ territorial income tax
- Those individuals who reside or operate the business in any province or territorial jurisdiction of Canada including Toronto are required to pay provincial or territorial income tax. The tax is subjected to the tax calculated on the federal return and collected by the federal government. The Toronto provinces and territories income tax in Canada is distributed in different tax slab which is as follows:
- Personal income tax rates for 2023:
- 5.05% on the first $46,226 of taxable income
- 9.15% on the portion of taxable income over CAD $46,226 up to $92,452
- 11.16% on the portion of taxable income over CAD $92,452 up to $147,667
- 12.16% on the portion of taxable income over CAD $147,667 up to $220,000
- 13.16% on the portion of taxable income over CAD $220,000
- The corporate income tax rate for general active business income: 11.5%
Reasons to register company in Toronto
- There are plenty of motives on why one should register their company in Toronto. With its variety of opportunities, you might find the most suitable environment to operate your business in Toronto.
- Thereafter if you need further assistance, Tetra Consultants has a global team of experts that will work closely with you to meet your particular business needs.
- A dynamic and steady political environment in the country is conducive to business growth and development. A strong and stable political aspect of the state represents a strong economy of the state which makes it a preferable place to operate a business. Since Toronto has a stable political and social environment it continues to attract many multinational corporations and their employees to set their company there in order to get some extra benefits from the government.
- The favorable economic condition of Toronto has been able to attract many companies to operate their business from Toronto. Being the largest contributor to the GDP of Canada with 20% Toronto has proved to be a suitable place for businesses. The businesses based in Toronto have an export of over CAD $70 billion in goods and services to every corner of the world with a global retail of CAD $62 billion annually. These statistics show the favourable economic condition of the state.
- The healthy economic condition of the state has enabled entrepreneurs to start their businesses without obligating any minimum capital requirement. This promotes the entrepreneur to work and operate their business in Toronto enhancing the economic conditions of the state and also helping to boost the economic growth.
- Toronto is the largest city in Canada having a population of 2.7 million people, which provide access to a wide range of market and a large population base. The large population base helps in creating favourable economic conditions for businesses to grow and expand.
- Toronto is a multicultural city, with a wide diversity of population from different countries, states, religions, and languages. This wide diversity can help businesses grow and can be an advantage for businesses that want to tap into different markets. The social conditions enable businesses to serve a wide range of customers with different tastes and preferences.
- Toronto has a stable income security program that delivers pensions and benefits through the Old Age Security Program and the Canada Pension Plan (CPP). CPP is a contributory, earnings-related social insurance program that ensures a measure of protection for the contributor and his or her family against the loss of income due to retirement, disability, or death. Old Age Security provides additional funding to eligible low-income seniors.
- Toronto has well-developed businesses established along with the high-end technological infrastructure of the state. The technological development of the state can be seen through online business services registration. Since 2006, the state has been developing its technological infrastructure making it easy and convenient for business owners and entrepreneurs to set up their business in Toronto.
- Toronto has a thriving innovation ecosystem, with a growing number of startups and incubators. This ecosystem provides businesses with access to cutting-edge technologies and innovative ideas. Toronto has a large talent pool of people aged between 25-34 empowering the state and accessing the highest quality of technical talent, which can be advantageous for businesses.
- Toronto has an innovative and thriving ecosystem with many startups and incubators growing and expanding their business. The ecosystem provides the businesses operating in Toronto with cutting-edge technologies and innovations for the expansion of business. With a large population base, Toronto has a dynamic environment preferable for businesses to operate.
- With the business-friendly environment, Toronto is enabled to provide a solid foundation for many entrepreneurial endeavours. A robust network of resources, incubators, and professional services is available to support businesses in their growth and development. With such a dynamic environment Toronto has built a multi-sector strength, depth of talent, and a driving economic and financial engine. This provides businesses with access to a diverse range of industries and opportunities for collaboration and growth.
- There are various legal requirements for businesses to operate in Toronto. To comply with the government authorities and to eliminate the scope of irregularity in business the business is required to secure the proper licenses, permits, and inspections prior to opening or operating. One of the lowest taxes for corporations which is as low as 15% of the business profits helps the businesses to operate. The legal requirement of the business varies depending on the business activity, industry, jurisdiction, and many more such things.
Looking to register company in Toronto?
- Tetra Consultants will be your one-stop solution to register company in Toronto. Our comprehensive service package will enable you to incorporate a company and include services with respect to corporate bank account opening, provision of nominee director and shareholder services, and many more ancillary services to provide seamless and hassle-free business operations.
- Contact us to know more about the process to register a company in Toronto and our team will revert within the next 24 hours.
How are companies registered in Toronto?
- Companies can register through an online process. However, the applicant can also opt for offline mode for filing documents and applications. Depending on the requirements of the applicant a file for company registration can be filled. Using these formats might be tough for applicants hence, Tetra Consultant can make the registration process easy for them.
What types of business structures can be set up in Toronto?
- The businesses can opt from a wide range of business structure which commonly includes sole proprietorship, partnership may be general or limited liability, cooperations, and cooperatives.
Where do I go to register a business in Toronto?
- Businesses in Toronto can be registered through Tetra Consultants, to make the whole process seamless and easy.
Can I register company in Toronto from India?
- Yes, you can easily register a business in Toronto from India through Tetra Consultants. We provide incorporation services that will make the whole journey of incorporation seamless and hassle-free for you.
Where do I go to register business in Toronto?
- Business name registrations can be completed in person. An easy way to register a business in Toronto would be to opt for incorporation services through Tetra Consultants.