Company Incorporation

1. Why is Incorporation necessary?

When you incorporate your business it protects you as an individual from business finance and personal liabilities. If unincorporated it is you, a person who is making transactions and your personal assets such as your home, bank account etc. may be levied upon to pay business debts or settle a claim, if judgement is awarded against you. When your business is incorporated it becomes its own legal identity and separate from you as a person.

There are also many tax advantages to incorporation, however these are best discussed with your accountant and us at the same time.

There are structural advantages to having your company incorporated, preferred shared issued meaning that you decide who are on the Board of Directors and who has decision making powers in your company. It removes guess work, and prepares you better for the eventual sale or succession by family of your business.

2. What fees and costs can I expect to incur?

If you are incorporating a company in Nova Scotia you could reasonably expect legal fees, incorporation fees payable to the Registry of Joint Stock Companies, the cost of a name search for your company, the cost of supplies such as a legal seal and corporate book. You should budget $1800 for incorporation and a similar amount for the transfer of assets to your company and all supporting documents.

3. What is the role of Fownes Law Offices when I am incorporating?

If retained for your incorporation we search and ensure that the proposed name for your company is available and then reserved, explain the advantages and disadvantages of incorporation, all of the documentation required for incorporation will be prepared, consult with your accountant to ensure that your business is organized and set up as your instructions to both us and the accounting firm. Submit all documents to the Registry of Joint Stock Companies, order your legal seal, prepare the minute book, company shares, and all necessary registrars. Report to you and your Accountant all of the necessary information that you can get on with business.

4. What information should I have on hand or answers to assist in the process?

You should be prepared with the name and address of your accountant, when you wish your fiscal year to end, which institution you will be banking through, the names, civic and mailing addresses of each person who will be sitting as a director, where you registered office is or will be located, how many shares are to be issued and the amount of capital required for each share.

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