How to run a business legally in Canada? Do I need to register to run a business in Canada?
The answer is of course. In general, there are three types of businesses you can choose to register: sole proprietorship, partnership, and corporation.
For new immigrants or international students who have just graduated and want to start their own business, choosing the type of business that suits them is indeed a troublesome matter. The editor below will help you answer it in detail.
What is a sole proprietorship?
A sole proprietorship, also called self-employment, is an enterprise that is owned and controlled by an individual and the individual bears the business risks and enjoys all business profits.
Introduction:A sole proprietorship is also called self-employment, which is an enterprise that is funded and operated by an individual. It is owned and controlled by an individual and bears the operating risks and enjoys all operating profits. It is a non-profit enterprise. Register a corporate entity. In Canada, it is mainly popular in small business activities such as real estate agents, purchasing agents for overseas students, home kitchens, personal consulting, etc.
Advantages:
- The establishment and dissolution procedures of an enterprise are simple.
- Operation and management are flexible and free, and business owners can manage their businesses completely according to their own wishes.
Disadvantages:
- The risks are huge. When poor management requires repayment of debts, the business owner has unlimited liability for the business debts, that is, the business owner needs to use personal property to repay the business debts.
- The future development scale of the enterprise is limited. It is difficult for enterprises to obtain external investment, and the limited time, property and energy of business owners restrict the development and growth of sole proprietorships.
What is a partnership?
A partnership is a joint venture established by two or more partners who jointly contribute capital- The joint venture does not need to pay income tax in the name of the enterprise, and all income is taxed in the name of the individual.
- Simple regulatory laws and regulations make it easy to establish and dissolve a partnership.
- It has better development prospects than a sole proprietorship. Joint ventures are jointly financed and managed by the partners. The capital chain is relatively strong and it is easier to obtain external investment.
Disadvantages:
- Liability is unlimited, and general partners need to use their personal finances to repay corporate debts.
What is a company?
A company refers to an enterprise legal person established in accordance with the law, with independent legal property and for the purpose of profit.
- Limited Liability. Shareholders of a company are only responsible for the debts of the company to the extent of their capital contribution.
- Financing is easy. The company can raise funds by issuing stocks and bonds on its own, which greatly expands the source of corporate funds, allowing the scale of the enterprise to break through the capital limit, and the future development prospects are objective.
- Making great progress. Standardized company systems and internal management, as well as abundant funding sources and human resources are strong backing for the company's future development.
- The establishment and dissolution procedures of a company are complex.
- Strict government supervision and laws and regulations need to be followed.
- Complex accounting standards and tax regulations need to be followed.
Now that you understand the basic types, do you think it is not easy to do business in Canada? Is it harder to choose? It doesn't matter, Wang Ke Accounting Firm will tailor-make the type of business that best suits you. From selecting the company type, registering the company, to finalizing the financial statements, we provide the most comprehensive services that we can't do unless you can imagine it.
