The process of starting a business in Quebec is similar with the one that is applicable at a national level. Thus, all customarily steps have to be taken here as well – selecting a suitable company type, registering its trading name, signing the statutory documents, register the company with the local institutions, including for taxation purposes and obtaining the business permits and licenses necessary in this case, these being compulsory steps when opening a company in Canada.
Then, it is also required to find a place where your company will have its official business address – this is required for all companies in Quebec and for this purpose, investors can also use the services of a virtual office, if their activity allows it. In this article, we will present some of the main aspects investors should follow when opening a company; for additional information on this subject, our team of consultants in company formation in Canadaremains at your disposal.
Choosing a company name in Quebec
When starting a business in Quebec, one of the main things investors have to clarify is the trading name of the company, which has to be unique at a national level. A suitable company name will have to comply with numerous requirements and it will have to respect the provisions of Article 17 of the Corporate Legal Publicity Act.
It must also comply with the Section 1 of the Regulation Respecting the Application of the Act (Corporate Legal Publicity Act), but also with the Regulation Respecting the Language of Commence and Business. If you need advice on this subject, our consultants in company registration in Canada can help you; you can also receive guidance on how to complete the trading name application form.
Prepare the statutory documents of the Quebec company
Another necessary step that you must fulfill when opening a company in Canada is to prepare the company’s statutory documents, through which the legal entity gains legal recognition. The statutory documents will depend based on the company type selected – for example, corporate structures, such as the limited liability company, will be incorporated based on the articles of association. Partnerships will be recognized when the founders will sign the partnership agreement.
Thus, those starting a business in Quebec as a corporate entity will have to prepare the articles of association. In the list below, our team of specialists in company formation in Canada have prepared few of the elements that have to included in the articles of association, so that the document can meet the minimum legal requirements:
- the company’s registered trading name and the address where the company has its registered headquarters;
- the number of directors of the company and information on the respective persons;
- information on the company’s capital and the shareholding structure;
- information regarding the transfer of shares (and this can vary based on the type of corporate structure registered – private or public);
- information on the types of activities that will be developed by the company and details regarding the company’s founders.
Our accountants in Canada can offer information on the taxation system in Quebec.
Why should investors start a business in Quebec?
Deciding on where to start the process of opening a company in Canada can be a difficult decision, as the country overall has one of the most developed economies at a global level and it also provides investor friendly conditions. With regards to the decision of starting a business in Quebec, foreign investors might be influenced by the following:
- Quebec represents the 1st university center in Canada, which means that it has a highly educated workforce;
- starting a business in Quebec can be a good idea, as this region is the 1st large urban area in North America on competitive operating costs;
- the city is one of the largest 50 cities at a global level, having a very diversified economy;
- the province of Quebec is a part of the North American Free Trade Agreement, which means that local businesses have access to a consumer market of more than 460 million persons;
- its population has a large share of bilingual citizens (of 50%), who are fluent in English and French.
Where can one register for taxes in Quebec?
One of the most important obligations of commercial companies is to register for the payment of local taxes. Those starting a business in Quebec have to register with the Revenu Quebec for the payment of the corporate income tax, payroll taxes, deductions or consumption taxes.
For more details on the types of taxes one has to pay when starting a business in Quebec, our team of consultants in company formation in Canada remain at your disposal. Please contact our team for advice on this subject, as well as for in-depth information on the accounting obligation of local businesses.