Definition - A corporation, also known as a company, is a legally constituted entity, distinct from its owners, who are the shareholders, and run by its officers with the aim of generating profits for distribution to its shareholders.

Continuous Existence - A corporation will continue to exist until it is formally liquidated.

Limited Liability - The shareholders are protected by limited liability rules. This means that the extent to which the shareholder is responsible for the corporation's debt is restricted to the amount that the shareholder has invested in the company; unless that shareholder has made a personal guarantee against the corporation's loans.

Financing Options - A corporation usually has a wider range of financing options available to it. For example, it can issue different classes of shares and issue bonds. Corporations also tend to be more likely to obtain loans from financial institutions.

Prestige - Corporations tend to be more highly regarded than sole proprietorships and partnerships.

Property Ownership - Corporations can hold the legal title to property.

Ability to Enter into Contracts - Corporations are a separate legal entity and hence can enter into contractual agreements.

Tax Benefits - Corporations benefit from lower rates of income tax and can bring forward losses from previous years to offset the profits from the present year. Please consult with your accountant or tax professional for advice on the best course of action for your situation.

Initial Costs - There are initial costs of starting up the company. For example, government fees are higher than other forms of business structure.

Corporate Maintenance - Companies must retain and maintain records of its business activities, hold regular meetings, elect directors and keep their shareholders informed.

Accountancy Fees - Financial statements and preparation of corporate tax returns normally require the appointment of an accountant.

Definition - A named corporation is one that is incorporated under a name, as opposed to a number.

Name Search - In order to incorporate a named corporation, a name search must first be performed to check the availability of that name. For Ontario and federal incorporations, the NUANS® name report is valid for 90 days from the date of the report request. For Quebec, a search must be done to ensure there is no identical or similar name but the name is not reserved.

Choosing a Name - If the name you have selected is confusingly similar to another company's name or contains words that are not permitted, for example UN or obscene words, then it will be rejected.

Required Elements - The name you choose must have a distinctive element and a legal element. It may also contain a descriptive element but this is not compulsory. Let us look at the name "Atrexelle Hardware Ltd". "Atrexelle" is the distinctive element. The more distinctive it is, the better your chance of having the name approved. "Hardware" is the descriptive element, which informs people of the nature of your business. "Ltd" is the legal element.

Legal Element - All corporations must have a legal element and the options for each jurisidction are listed within the individual incorporation applications.

Definition: A numbered corporation is not incorporated with a name but with a number generated by the government.

Trade Name: Following incorporation, a trade name can be registered and the company can carry on business using the trade name instead of the number granted on incorporation. For example, Atrexelle Manufacturing div. of 1234567 Canada Inc. Please note that a trade name cannot be ended with a legal element such as Inc, Corp etc.

Formalities: However, for all legal and government paperwork, the company will be referred to by its number rather than its trade name.

Advantage of a Numbered Corporation - It is usually speedier to process than an incorporation of a named corporation.

Disadvantage of a Numbered Corporation - It does not offer the benefit of a descriptive identity for your business.

It Depends - You do not have to hire an attorney to incorporate a company but it is advisable if you have specific requirements. We recommend that you seek legal advice from a competent attorney on any matters which you may be unsure of.

One Form - If you incorporate through us you only need to fill in ONE form.

Guided Process - We will guide you through the entire process and guarantee that your experience of incorporating with us will be easy and straightforward.

Submissions - We will prepare and submit all the relevant documents on your behalf and inform you on the progress of your application.

My Account - We offer a feature that allows you to save incomplete applications and keep track of the progress of your submitted applications. For more information on My Account features, please click here.