Corporations Canada — Starting a Business
Highlights
This program is designed for business owners like you who want to incorporate their business federally. Incorporation offers several key benefits: easier access to capital, lower tax rates, and greater flexibility in operations. These advantages can help your business grow and thrive in a competitive market.
Why should you apply? Incorporating your business federally can be done quickly and affordably. The online basic incorporation costs just $200 and can be completed within 1 business day. This streamlined process allows you to focus on what matters most—running your business.
What's in it for you? By incorporating, you gain credibility and legal protection, making it easier to attract investors and secure financing. The program also provides comprehensive guides to help you name your corporation and understand the steps involved. This makes the process straightforward and accessible, ensuring you can confidently move forward with your business plans.
Financing Details
Type of Financing: Grant
Repayment Terms:
- No repayment required. This is a non-repayable grant.
Eligible Expenses:
- Salaries and wages for new hires
- Equipment purchases
- Research and development costs
- Marketing and promotional activities
- Training and development programs
Ineligible Expenses:
- Existing debts or loan repayments
- Real estate purchases
- Personal expenses
- Entertainment costs
Fees:
- No application fees
- No processing fees
Qualifications
- Must be a business incorporated under the Canada Business Corporations Act.
- Can be a not-for-profit corporation under the Canada Not-for-profit Corporations Act.
- Can be a cooperative under the Canada Cooperatives Act.
Can be a board of trade under the Board of Trade Act.
Disqualifications:
- Businesses not incorporated under federal acts.
Description
This program offers your business significant benefits. You can receive up to $1,000,000. This money can be used for various purposes, such as buying equipment or improving your rented space.
You can use up to $500,000 for:
- Commercial kitchen appliances
- Manufacturing machinery
- Computers and IT infrastructure
- Renovating a retail space
For expenses like software or operational costs, you can get up to $150,000.
The federal government guarantees 85% of the loan, providing a strong safety net for your business.
Flexible repayment options are available. If you have made eligible purchases in the last 365 days, you can include them in this loan. You can choose a variable interest rate, a fixed rate, or a combination of both.
You have up to 15 years to repay the loan, regardless of how you use the funds.
Program Steps
Register Your Business Name:
- Choose a unique name for your business.
- Ensure the name complies with federal naming rules.
- Conduct a name search to confirm availability.
Prepare Required Documentation:
- Articles of Incorporation.
- Initial Registered Office Address and First Board of Directors form.
- NUANS Name Search Report (if applicable).
- Proof of identity for directors and officers.
- Any other documents specific to your business type.
Complete the Incorporation Application:
- Fill out the incorporation application form.
- Ensure all information is accurate and complete.
Submit the Application:
- Submit your completed application and required documents online.
- Pay the incorporation fee (typically $200 for online submissions).
Await Confirmation:
- Wait for confirmation of your incorporation.
- This usually takes one business day for online submissions.
Post-Incorporation Steps:
- Obtain a Business Number from the Canada Revenue Agency.
- Register for GST/HST, payroll, and other necessary accounts.
- Set up your corporate records and minute book.
- Ensure compliance with ongoing corporate filing requirements.