Entrepreneurship & Small Business

DIY Provincial (ON) or Federal Business Incorporation 1-2-3 & Save your money

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  • Mar 13th, 2017 3:11 pm
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[OP]
Deal Guru
Aug 2, 2010
11023 posts
2264 upvotes

DIY Provincial (ON) or Federal Business Incorporation 1-2-3 & Save your money

I've done this a number of times, most recently for a new Ontario company I just incorporated. I thought I'd share how easy peasy it is. You don't need lawyers or online filing services etc. Save your money. You can do either Provincial or Federal Incorporation. You should google 'provincial vs federal incorporation' to decide which is best for you.

Provincial Incorporation - Ontario:

1. Ordered an Ontario Nuans name search report at http://www.corporationcentre.ca/docen/pns/home.asp for $25+HST. Was delivered to my email within 1/2 hr. Printed 2 copies. Note that if you just want a numbered company you do not need this report and you will just be assigned the next number they are handing out. Many use this (as I have) for holding companies that just hold investment assets rather than are active companies operating businesses doing trade.

2. Printed and filled out 2 copies of the Ontario Incorporation Form 1 from http://www.forms.ssb.gov.on.ca/mbs/ssb/ ... 07116E.pdf. Entered myself as sole director & incorporator, 'no restrictions' on share xfer, 'unlimited common shares' and 'none' for all the other questions.

3. Cycled down to the 375 University Ave. 2nd Floor and submitted my duplicate forms & NUANS and $360 by credit card. They hand you one stamped copy back along with an 'Initial Return by an Ontario Corporation, Form 1' which is a simple form that you need to fill out with basically the same info you just submitted and mail or drop off within 60 days to 393 (not 375!) University Ave, Suite 200. I'll cycle down to drop it off and save the stamp in true RFD spirit and get some exercise while I'm at it.

Total Cost = $360 (Gov't filing fee) + $28.25 (NUANS name search) + $1.13 (binder) = $389.38 and transportation was free. No Annual reporting requirement fee.

If you want to get fancy (but you don't need to) on the share structure, restrictions on xfer, etc then just google or change it later by resolution.

Seals are no longer legally required so I don't order them, nor is an 'official' fancy looking minute book. I just use a $1 dollar store binder and ordinary paper. Nor do you need a lawyer or paralegal to do the minute book. Samples of minutes can be found online which you can modify to suit your company. Next you just issue the shares to whomever and fund the company either via loan or share purchase or just use your own money or credit card and get reimbursed via petty cash report to the company. Then go open a business bank account and google to see who's the cheapest and meets your needs. Save money and don't get a company credit card but just use your personal one and let the company reimburse you (too much business use might result in the CC company requiring you to use a business CC, but unless you are buying huge amounts of inventory on it or other huge obviously business related charges you will have no problem).

The whole process took 90 minutes (including going to Dollarama!).

Federal Incorporation - Canada:

Many aspects are similar to Ontario incorporation. However, this can all be done online.

1. Go to https://www.ic.gc.ca/app/scr/cc/Corpora ... rp-wz.html and just answer the questions.

2. Note that you only need a NUANS report if you want a named company instead of a numbered company. If you just want a numbered company you do not need this report and you will just be assigned the next number they are handing out. Many use this (as I have) for holding companies that just hold investment assets rather than are active companies operating businesses doing trade. Note that if you order a NUANS report for Ontario or Federal they must be used for that incorporation. You cannot use an Ontario NUANS report for Federal incorporation and vice-versa.

3. Enter your payment method and then wait for your incorporation documents to arrive via email.

Total Cost = $200 (Gov't filing fee) + $28.25 (NUANS name search) + $1.13 (binder) = $228.38 $20 Annual fee for Annual reporting requirement if done online.

Note: There is no requirement to report shares issued/transferred/bought/sold or shareholder information to either authority as erronously reported around the InterWebs. In fact there is no requirement even to decide any of that at the time of incorporation but you better do it shortly after incorporation if you have multiple shareholders as everyone wants to know what they are getting. If it's just you there is no rush but you have to have it done by the time you prepare your first financial statement and certainly before you file your first corporation tax return. You need not contribute anything to the company and the share can just have a nominal value of $0.01. Personally I just loan $ to my co and have it paid back. You can do that with multiple shareholders too.
41 replies
Penalty Box
Dec 27, 2013
6137 posts
2225 upvotes
Toronto
Thanks for the clarity.
Sr. Member
Mar 18, 2015
829 posts
166 upvotes
Antarctica
Thanks for the detailed step by step write up.
Newbie
Nov 11, 2014
31 posts
5 upvotes
Ottawa, ON
Indeed, it is straightforward. However, when you add a shareholder, on top of recording the Resolution, issuing the # number of shares and have the new shareholder signing the form, do you have to register that person somewhere online, with some Administration?
[OP]
Deal Guru
Aug 2, 2010
11023 posts
2264 upvotes
Kadido wrote:
Jul 17th, 2015 1:21 pm
Indeed, it is straightforward. However, when you add a shareholder, on top of recording the Resolution, issuing the # number of shares and have the new shareholder signing the form, do you have to register that person somewhere online, with some Administration?
No
Newbie
Nov 25, 2015
10 posts
Toronto, ON
eonibm wrote:
Jul 10th, 2015 10:02 pm
I've done this a number of times, most recently for a new Ontario company I just incorporated. I thought I'd share how easy peasy it is. You don't need lawyers or online filing services etc. Save your money.

1. Ordered an Ontario Nuans name search report at http://www.corporationcentre.ca/docen/pns/home.asp for $25+HST. Was delivered to my email within 1/2 hr. Printed 2 copies.

2. Printed and filled out 2 copies of the Ontario Incorporation Form 1 from http://www.forms.ssb.gov.on.ca/mbs/ssb/ ... 07116E.pdf. Entered myself as sole director & incorporator, 'no restrictions' on share xfer, 'unlimited common shares' and 'none' for all the other questions.

3. Cycled down to the 375 University Ave. 2nd Floor and submitted my duplicate forms & NUANS and $360 by credit card. They hand you one stamped copy back along with an 'Initial Return by an Ontario Corporation, Form 1' which is a simple form that you need to fill out with basically the same info you just submitted and mail or drop off within 60 days to 393 (not 375!) University Ave, Suite 200. I'll cycle down to drop it off and save the stamp in true RFD spirit and get some exercise while I'm at it.

Total Cost = $360 (Gov't filing fee) + $28.25 (NUANS name search) + $1.13 (binder) = $389.38 and transportation was free.

If you want to get fancy (but you don't need to) on the share structure, restrictions on xfer, etc then just google or change it later by resolution.

Seals are no longer legally required so I don't order them, nor is an 'official' fancy looking minute book. I just use a $1 dollar store binder and ordinary paper. Nor do you need a lawyer or paralegal to do the minute book. Samples of minutes can be found online which you can modify to suit your company. Next you just issue the shares to whomever and fund the company either via loan or share purchase or just use your own money or credit card and get reimbursed via petty cash report to the company. Then go open a business bank account and google to see who's the cheapest and meets your needs. Save money and don't get a company credit card but just use your personal one and let the company reimburse you.

The whole process took 90 minutes (including going to Dollarama!).
90 minutes?? Wow!! That's pretty fast. I bet if there are others out there who can beat that. This place has answers to almost anything you would wanna know about Canada. That's pretty amazing. I bet business incorporation can be done online, which would take even lesser time. The faster, the better.
[OP]
Deal Guru
Aug 2, 2010
11023 posts
2264 upvotes
Saulewig wrote:
Dec 1st, 2015 12:47 am
90 minutes?? Wow!! That's pretty fast. I bet if there are others out there who can beat that. This place has answers to almost anything you would wanna know about Canada. That's pretty amazing. I bet business incorporation can be done online, which would take even lesser time. The faster, the better.
Sounds like a shill for your website. It's always easy to tell someone is a shill because they have no posts yet start advertising a service on here. Yeah you can waste your money paying someone else to do it, duh, or do it yourself and save your hard earned money. You can also do a federal incorporation online and it's only $200 + NUANS fee (unless you decide to go numbered). Ontario vs Federal each have their advantages/disadvantages.

MY ADVICE: Do it yourself and don't pay extra to companies like the one Saulewig just shilled/advertised! SAVE MONEY. THIS IS RFD! IT'S EASY/PEASY!
Newbie
Oct 24, 2011
62 posts
11 upvotes
Markham
Thanks eonibm!

It would've been super helpful if i saw this earlier!

I have a questions for all the experts here, I want to change the share structure (Preferred/Common + Class A, B, C, D... etc), does anyone have experience regarding the wordings that i need to write on the form?

My Corporation currently only have 1 class of share and i want to change that.

Thanks in advance.
Newbie
Aug 3, 2008
83 posts
2 upvotes
Thanks eonibm for sharing all that information. Really appreciate it.
Deal Addict
User avatar
Nov 27, 2005
1151 posts
146 upvotes
Yeah you should do it yourself. It took me less than a hour to do this. There shouldn't be a need for a tutorial because it's a straight forward process.
[OP]
Deal Guru
Aug 2, 2010
11023 posts
2264 upvotes
BLKLBL wrote:
Dec 2nd, 2015 9:58 am
Thanks eonibm for sharing all that information. Really appreciate it.
You are welcome. I have updated my OP to add Federal incorporation.
Newbie
Nov 25, 2015
10 posts
Toronto, ON
eonibm wrote:
Dec 1st, 2015 11:13 am
Sounds like a shill for your website. It's always easy to tell someone is a shill because they have no posts yet start advertising a service on here. Yeah you can waste your money paying someone else to do it, duh, or do it yourself and save your hard earned money. You can also do a federal incorporation online and it's only $200 + NUANS fee (unless you decide to go numbered). Ontario vs Federal each have their advantages/disadvantages.

MY ADVICE: Do it yourself and don't pay extra to companies like the one Saulewig just shilled/advertised! SAVE MONEY. THIS IS RFD! IT'S EASY/PEASY!
Great! So if someone posts an opinion/tries to help, brand them as shill agents. Also writing something in blue with overly elaborated font size doesn't necessarily mean what you are saying is right. Anyways, thanks for your advice. Appreciate it.
[OP]
Deal Guru
Aug 2, 2010
11023 posts
2264 upvotes
Saulewig wrote:
Dec 3rd, 2015 2:08 am
Great! So if someone posts an opinion/tries to help, brand them as shill agents. Also writing something in blue with overly elaborated font size doesn't necessarily mean what you are saying is right. Anyways, thanks for your advice. Appreciate it.
When someone uses the kinds of words you do in their posts, such as 'amazing', has no prior posts and touts a paid service in a thread showing people how to do the exact same thing for free with little effort I have found that is is usually a shill.
Member
User avatar
May 14, 2008
370 posts
28 upvotes
eonibm wrote:
Dec 3rd, 2015 6:14 am
When someone uses the kinds of words you do in their posts, such as 'amazing', has no prior posts and touts a paid service in a thread showing people how to do the exact same thing for free with little effort I have found that is is usually a shill.
Not to mention the paid service they push is virtually identical to the 2301915151515 other "amazing" incorporation sites out there.
Deal Addict
Jul 11, 2008
4149 posts
1361 upvotes
your posts are very dedicated.

thanks for the write up; as well as the realtor thread.

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