Types of Businesses in Canada - Register a Company for Non-Canadian Resident

To bridge the gap between Asia and North America, ASC seeks to ascertain potential opportunities across the two continents; and envisions building a strong partnership to endorse holistic corporate growth for the future. Recognizing an opportunity is what it takes to grow your company in the right direction. We understand your company structure and its requirements, and thereafter advise a market best suited to your business needs. Our dedicated team of experts is well-versed in all aspects of advisory and we make sure that we find the right partners for your business venture in a different jurisdiction. To incorporate any type of business in Canada:

Different Forms of Business Ownership

There are mainly four types of businesses in Canada:

1. The sole proprietorship
2. The partnership
3. The corporation
4. The cooperative 

The Sole Proprietorship

• Easiest and most economical way to incorporate a company.
• Owner solely manages the company.
• Tax reporting is easy and quick.
• Unlimited personal liability as there is no separation between the company and the owner.
• Can be difficult to increase capital through debt or equity financing.
• Challenging to sell.

The Partnership

• Minimum two partners sharing the risk of a business.
• Management of business by all the partners.
• Tax reporting is easy.
• Chances of Risk of conflict amongst Partners.
• Either partner can be held accountable for business debts suffered by the other partner.
• Decision-making shall be done mutually.
• Buyouts can be Troublesome.

The Corporation

• Limited liability where owners are not responsible for company debts or obligations.
• Easier to raise capital from investors or financial institutions.
• Incorporating a company as Corporation is often a necessity when doing business with governments or other companies.
• Company income can be funded in the form of salary or dividends, allowing you to enhance your tax situation.
• The most costly form of Company to set up and preserve.
• Filing of annual business tax returns

The Cooperative

• Owned and organized by its members.

• Limited liability of Owners.
• Decision-making can be slow.
• Low Risk of conflict between members.

The form of ownership you choose regulates the business registration process you require to adopt. Registering a sole proprietorship is easier and more inexpensive than registering a corporation, but as you see from the advantages and disadvantages above, there can be compelling reasons why you would want to go to more trouble and expense when you are setting up your new business.

Why Canada is the preferred location for business?

• The most common reason for the incorporation of the company from its commencement rather than just setting up a sole proprietorship or partnership to start is the issue of liability; as sole proprietors are their businesses, lawfully, whatever debts or liabilities a business procures are also the individual owner's. It's not the only reason that the initial corporation may be desirable.
• All industries/companies in Canada must register their company names in their provinces or territories excluding sole proprietorship as they can use only the owner's legal name with no additions.

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