Foreign investors who want to open companies in Canada must comply with various regulations which depend on the activities they want to carry out. However, the most important law is the Company Act, also known as the Business Corporations Act. The law was drafted in 1985 and is completed by several other laws which provide for the requirements companies must respect once registered.
Our company formation consultants in Canada can offer information on the Business Corporations Act.
The content of the Canadian Company Act
The Canadian Company Law is made up of more than 20 parts which provide for various requirements foreign investors are bound to comply from before registering a company and up to the final phase of the company incorporation procedure.
One of the most important parts of the Canadian Business Corporations Act refers to the registration of companies with Corporations Canada, also referred to as the Trade Register.
The Company Act provides for the following requirements related to starting a business:
- the shareholders of the company must have at least the legal age of 18 and must not be bankrupt;
- the minimum number of shareholders for opening a company in Canada is one and can be an individual or another company;
- the company will be registered by preparing the Articles of Incorporation
Our Canadian company formation agents can assist with the preparation of the Articles of Incorporation as requested by the Business Corporations Act.
We also invite you to watch our video on the Canadian Company Law:
Other provisions of the Business Corporations Act in Canada
Apart from providing for the registration of companies in Canada, the Company Law also contains provisions about:
- the corporate governance code which must be issued by a company;
- the duties and rights of company directors;
- the shareholders’ rights;
- the board of directors;
- the reorganization of companies in case of financial distress;
- the company liquidation and dissolution procedures.
The Canadian Company Act is completed by the Consolidated Acts and Regulations and the Annual Statutes which provide for the accounting requirements a company must comply with.
For full information on the Company Law and assistance in setting up a business in Canada, do not hesitate to contact our local advisors.