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How to eSign a document: online signature lawfulness for businesses in Canada

there are two main reasons why most canadian  business owners incorporate their business   in canada limited liability and tax advantages  so as a shareholder you have limited liability   which means you and the other shareholders  are not responsible for the cooperation debts   and obligations basically what happens here is  that you separate yourself from the cooperation   because corporations in canada are considered  legal separate entities now reason number two   is the corporate tax rates are much lower than the  individual tax rates in canada also you have the   option to pay yourself in a salary or dividends  to save taxes so in canada you have the option   to cooperate federally or provincially so in both  situations you're able to operate your business   in all provinces all over canada and you can also  sell products or offer services to your customers   anywhere in the world but the main advantage of  incorporating federally is that it's going to   provide you with more business name protection  which means your business name is going to be   registered all over Canada rather than registering  provincially which gives you protection just   in that specific province so in this video i'll  share with you the step-by-step process on how   to register and incorporate your business in  canada so without further ado let's get into   it the first step is to google incorporate in  canada and go to this link that says federal   incorporation corporations canada so this is the  official website of the government of canada and   it says federal incorporations offer many benefits  including the right to use your name across canada   limited liability lower corporate tax rates and  better access to capital and grants so before we   get started make sure to go to how to incorporate  a business under guides and help and get more   information about registering your own cooperation  but of course i already went through this process   and i'm going to click on incorporate at the  bottom of this page to get started so once you   sign in and get to this page you are going to have  three different options for your corporation the   basic corporation gives you a number name like one  two three four eight canada inc and it allows you   to choose between a predetermined share structure  for one or two classes of shares this is the   quickest and easiest way to incorporate federally  because you get articles of incorporation with   basic provisions now the custom incorporation  gives you the flexibility to tailor your articles   of incorporation which i'm gonna dive into it  allows you to choose a word name of your choice   for example chico hairdressing or a number  name also it allows you to create a structure   with multiple classes of shares finally we have  not for-profit corporations it says non-profit   corporations do not issue shares they have members  so if you want more info you can go ahead and   learn more about that but for today's video we are  going to focus on custom incorporations so let's   select it and click on next here we are going to  enter our contact information like first name last   name phone number and email address next we are  going to choose a name for our corporation as you   can see we have three different options the first  option is a word name it says propose a new word   name of your choice the name must be as distinct  as possible to limit confusion with any existing   companies there is an additional fee of 80 cents  for this service now the second option is use your   name already approved by corporations canada if  you already got your name pre-approved you should   select this one and finally number where your  company gets a number name like one two three four   eight canada inc so for the purpose of this video  we are going to select word name and click on next   here you can decide to have one name in english  or french or two separate names in english and   french so if you live in quebec you need to have  a french form but i'm in british columbia so i'm   gonna go with one name just english here we have  to propose our business name so a business name   should have three different parts a distinctor  like your first name or last name a descriptive   term like construction or roofing or consultation  or marketing and a legal element like corporation   or incorporated or inc so here is a tool that  we can go ahead and enter our name and click   on search as you can see we should confirm which  word distinguishes our business name which in this   case is my first name ally we add our name like a  made-up name or last name business activity which   in this case is consulting services customers are  the general public across canada as you can see   after reviewing my search results it says there is  a similar name and it's already active so we are   going to try another name all right i replaced  my last name with my first name and it seems we   can go ahead and propose this one the next step  is to pay the naming fee which is 13.80 and once   the payment is made you will get a corporate name  received by email all right once you're done with   your corporate name the next step is to complete  your articles of incorporation so the first step   here is to select your province as you can see  it says your corporation must have a registered   office in canada i'm located in vancouver british  columbia so i'm going to select pc alright the   next step is description of classes of shares  as you can see it says an incorporated business   must issue at least one class of shares in this  section you must describe the classes of shares of   the incorporation and the maximum number of shares  of the corporation is authorized to issue for each   class if there are more than one class of shares  you must specify the right choice privileges   restrictions and conditions for each you may  choose predefined text that is commonly used   to describe either one or two classes of shares or  you may insert your own description so i'm going   to click on information icon to show you exactly  what they mean so one class of shares means that   the corporation is authorized to issue unlimited  number of common shares two classes of shares   means that the corporation is authorized to issue  an unlimited number of class a class b shares with   the following rights privileges and restrictions  so i'm going to select one class of shares and   continue the next step is to put restrictions on  shared transfers as you can see it says putting   restrictions on shared transfers is not mandatory  but if you want to restrict the transfer of the   corporation shares you must do so here choose none  if you don't want any restrictions if you want all   transfers of shares to be approved by directors  you may choose a predefined text that is commonly   used to require approval of shared transfers  you may also insert your own restriction   please indicate all restrictions on share transfer  at this time alright so i'm going to click on   tip and as you can see it says you may wish to  restrict the transfer of shares or securities to   prevent the corporation from becoming a reporting  issuer or the provincial or territorial security   and to avoid being as a distribution corporation  under the cbca to do this choose the predefined   text require approval of shares transfers in this  part so i'm going to click on information icon   next to the previous line to show you exactly what  it is as you can see it says the right to transfer   shares of the corporation shall be restricted  and no shareholder can transfer any shares of   the corporation without the approval of directors  or shareholders so that's exactly what i want so   i'm going to select the predefined text for my  restrictions and continue all right the next   step is to select a minimum and a maximum number  of directors for our corporation as you can see   it says a corporation must have at least one  director indicate the minimum and maximum number   of directors of your corporation if you want a  fixed number of directors indicate the same number   in each box so if i open the tip it says providing  a minimum and maximum number of directors rather   than a fixed number will offer more flexibility  and may help cooperation avoid making amendments   and paying an extra two hundred dollars we are  going to leave it at it is its default which is   minimum 1 and maximum 10 and continue all right  the next step is to put restrictions on business   activities it says putting restrictions on the  business a corporation may carry is not mandatory   but if you want to restrict the activities of your  corporation you can do it here choose none if you   don't want any restrictions you can also insert  your own restrictions so if i click on tip it says   most corporations do not provide any restrictions  and simply select none if you for some reason   want to limit the commercial activities of your  company you could use a text such as this one to   complete so i'm going to select none and continue  in the next step you can include other provisions   so there are two predefined provisions here  the first one is restrictions on securities   transfer and the second one is borrowing powers of  directors so i'm going to click on information to   show you exactly what they mean so the first one  is about the corporation securities it says the   corporation securities shall not be transferred  without either the sanction of the majority of   directors or shareholders so i'll definitely  select this one the next provision says the   directors of the corporation made time to time  borrow money or issue debt obligations so i'm   going to select this one as well and continue the  next step is to add incorporators it says every   corporation must have at least one incorporator to  be an incorporator an individual must be at least   18 years of age not bankrupt and not incapable  so we are going to click on add individual and   autofill our information the next step is to  select the effective date of incorporations so   once you select it click on next all right  the next step is to review the information you   provided and make sure that they're all correct  you also have to print and sign this pdf and keep   it for yourself and of course you don't have to  send anything to corporations canada because they   already have these documents the next step is to  enter our office address and add the first board   of directors it says the information provided  below is your business corporate information   and will be publicly available on corporations  canada website this includes the name and address   of directors as well as your corporation's  registered office address even if it's a   residential address this is where your corporation  must keep its corporate records and where legal   documents can be served and will be assumed to  have been received by corporation so once you add   your business address and the next step is to add  the first board of directors name and address and   authorize yourself or other directors like your  family members or business partners and click on   next the next step is to review this information  and print a pdf and keep it for yourself   and document it somewhere safe i personally  document all of my things on google drive for   the past few years and i highly recommend it so  once you make sure that everything is correct you   can confirm and continue to the next page this  page is about your tax return reminder notice   and it says once incorporated the company will  be required to file an annual return every year   this lets cra know that you're still in business  corporations canada automatically sends annual   return reminder notices by mail to the corporation  and its registered office address or a different   address if requested you can choose to have the  reminder notices send by email instead which is   much better so this is optional but i personally  prefer to receive emails so i'll enter my email   address and continue alright here it says you must  register your corporation in every province where   you conduct your business so if you are in ontario  make sure to select it there isn't much here you   just have to fill a short form and give consent  so i'm in vancouver british columbia i don't   have to select any of them here so i'll continue  alright the final step is to pay the incorporation   fee which is $200 canadian dollars we also paid  $13.80 at the beginning for our business name   which makes it almost 214 dollars in total to  incorporate your business in canada once you make   the payments you're gonna receive an email from  corporation canada which includes your invoice   and transaction approval receipt and you're going  to receive another email in a few hours up to 24   hours that you have officially incorporated your  business in canada so after incorporating your   business has a few obligations but there are three  important documents that you're required to keep   the first one is your minute book which documents  transactions the second one is your annual tax   returns and gst hsc return and finally the  third one is your company updates which is   informing cooperation canada for any changes in  your company so if you found this video helpful   make sure to give it a like and subscribe if you  haven't already and if you have any questions make   sure to comment below and i'll try my best to help  you out make sure to watch one of these videos   next because you don't want to miss them as always  thanks for watching and see you in the next video