If you want to start an LLC in Alberta, we advise you to first analyze its basic characteristics and discover what will be the main implications for you, as a business owner. An LLC is the abbreviation from one of the main company types investors can set up here, the limited liability company.
The LLC is designed to suit the needs of businessmen who want to register small and medium-sized companies (SMEs), so, the LLC can be ideal when starting a small business in Alberta, Canada. First, you should know that the LLC is legal entity with its own legal personality, which means that there is a clear distinction between the company’s founders and the company.
For information on starting a small business in Alberta, we invite you to request advice from our team of consultants in company formation in Canada. In this article, we will present the main characteristics of this company type, as well as other important aspects that should be known by foreign businessmen.
What is the process of starting a small business in Alberta?
The steps investors have to take when starting a small business in Alberta are the same that are applicable when starting the process of company formation in Canada. Regardless if you want to open a small business or a medium-sized company here, you will need to follow the same procedures, in accordance with the commercial legislation, as follows:
- when starting a small business in Alberta, investors will first have to select a suitable trading name based on specific characteristics, such as the legal component (the company type), the descriptive component (business activity) and the distinctive component (unique name);
- a limited liability company will be recognized when using the following words or abbreviations – limited, limitee, Ltee., Ltd.;
- in order to be sure that the company name is unique, you will have to complete a Newly Upgraded Automated Name Search (NUANS) report;
- then, you need to follow the governmental forms with regards to the papers you need for the process of company formation in Canada (our consultants can also advise on such documents);
- you will need to find a suitable office space where the company’s registered address will be, and then you will have to provide information on the respective address.
Given that you will start an LLC in Alberta, you will have to prepare the company’ statutory documents. In this particular case, the articles of association of the company have to be drafted and signed and for this procedure, the assistance of lawyers specialized in corporate law or the assistance of specialists in company registration in Canada is required.
In order to open your small business in Alberta, you will also need to appoint a director. Recently, the residency requirements imposed to directors of companies operating in Alberta have been eliminated, which means that foreigners can also be appointed as company’s directors.
Then, another necessary step in order to complete the process of company incorporation in Canada is to appoint an agent for service. This is a newer requirement imposed to companies operating in Albertaand through this, the company’s representatives make sure that a person who lives in Alberta can receive documents on behalf of the company. The steps mentioned here represent only a part of the entire procedure and if you want to open a company in Canada, our team remains at your disposal for more details.
What are the reasons for starting a small business in Alberta?
Opening an LLC in Canada provides the opportunity of investing in almost all business sectors available here without any types of restrictions. In Alberta, there are several business sectors which are the most appealing to local and foreign investors, such as tourism, aviation, agriculture, clean technology or financial services, that can provide numerous advantages. With regards to the reasons for opening a company here, we present the following:
- the corporate tax charged to businesses in Alberta was reduced to a rate of 8%;
- Alberta has the 2nd most important gross domestic product growth rate in Canada for the period of 1999-2019, of 2.7%;
- it also ranks as the 1st Canadian region on economic freedom and business friendly climate (in 2020);
- investments per capita in Alberta stand at $13,600, compared to the national average of $7,100;
- Alberta is the recipient of major foreign investment projects, with a total value of $140 billion.
If you need more information on starting a small business in Alberta, we invite to contact our team of consultants in company registration in Canada. Our specialists can present the tax benefits you can obtain when starting a small business, and can also advise on other tax deductions or exemptions that your company can be entitled to.