Get to know the types of businesses in Canada.
It is the simplest way to set up a business. The owner of a sole proprietorship is full fully responsible for all debts and obligations related to the business.
(1)The application procedure is very simple and the start-up costs are relatively low. The proprietor should register with the local provincial government including your name and your business name.
(2)There is no need to hand in the registration report. When referring to the tax declaration, just fill in the declaration form at the first time.
(3)The owner is fully responsible for all debts and profits.
(4)The owner can use his/her own name for the business or under other names.
Disadvantages and risks:
(1)If the business is under the owners name, the own is fully responsible for obligations related to the business.
(2)When in debts, the owner should is be of unlimited liability.
A partnership is an agreement in which two or more persons combine their capital and other resources in establishing a business.
(1)A couple or families can start a partnership business, such as a restaurant, a supermarket, etc,
(2) A partnership business is a co-operation.
(3)It is easy to formatting format a partnership business
(4)Except mine exploration and manufacture industry, a partnership business does not no need to register with the province
All partners share the management of the business and share in the profits according to the terms of the agreement.
Disadvantages and risks:
(1)Each partner is personally liable for all the debts and obligations of the business.
(2)The business replies on every partner finance .If one of the partner goes bankrupt, the business is over.
(3)Every partner has the legal right to sign business agreement and contract and responsible for all obligations.
(4)In order to protect partners profit in the event of disagreement or dissolution of the business, a partnership business agreement should be drawn up with the assistance and guidance of a lawyer.
Note: Limited Partnership
Some partners are general partners who control and manager manage the business and may be entitled to a greater share of the profits, while other partners are limited and contribute only capital. Limited partners take on part in control or management and are liable for debts to a specified extent only.
The limited partnership is totally different from the limited company.
A corporation is a legal entity that separates is separate from its owner, the shareholders.
(1)The corporation terms are written in the charter and memorandum.
(2)The shareholder is only responsible for his/her capital investment in the corporation. If the corporation goes bankrupt, the shareholder is of no obligations for the debts.
(3). The corporation can continuously exists existence whether the owners change or not. The ownership of the corporation is transferable.
Disadvantages and risks:
(1)A corporation business must register with the local government and registration charges. Besides, an annual report is a must document handed to the register government. It is the most expensive form to organize.
(2) The shareholder is respectively responsible for taxation declaration.
1. Select the right business according to your own status.
Start a business according to your own status and situations. When referring refers to the registration cost, a corporation cost is on the top list while the sole proprietorship is ranking the last.
2. It is of great importance It is important to write down the cooperation agreements with the partners. In order to establish the terms of the business and to protect partners in the event of disagreement or dissolution of the business, a partner agreement should be drawn up regulating the obligations and profits.
An agreement should include:
a. The amount and portion of capital investment in the business of each partner
b. If much more capital needed, how to raise money and the new investment standards.
c. The standards for sharing profits.
d. Should all partners are in control of the daily management and their obligations, etc.
e. If new partner joins or one partner drawbacks the capital investment, what the other partners should do in this case?
3. Establish a business and set up the branches.
It takes around one mouth month to get the approval for setting up a business. Starting a business should register with the province. If setting up a branch, a local people should be recruited as the branch manager by the employment file issued by the board.
4. After registration, an annual report with the boarders name list, addresses and the required fee should be handed to the registration office. The registered qualification will be cancelled without paying the required fee in two years.
After registration, the business can be started start and a seasonally taxation declaration is required. If the business has not opened from business yet, a report to the taxation bureau is needed.
6. Needed documents for business registration.
a. There nominated names for the business in English.
b. If the business is a branch of a Chinese company, a copy in English version of Certification is needed.
c. The information materials should include the names of the partners, identification or passports copies, and the specific contact information, such as office telephone and fax numbers, etc.
d. The range of business
e. At least one Canadian boarder information
f. If setting up a branch, a local people should be recruited as the branch manager by the employment file issued by the board.
7. Ready for Business
a. License for start business
b. Identification (nuans)
c. Sharehold portion identification
d. Business steel seals
e. The information documents of board and shareholders
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