Canada company formation benefits
What are the benefits of company formation in Canada? The Canadian system allows you to either incorporate under provincial law to operate in one province, or you can federally incorporate to do business across Canada. Should you choose to incorporate federally, you can use the same company name everywhere across Canada and not have any issues should you expand your operations.
What are some of the other Canada company formation benefits?
Another advantage of company formation in Canada is the limited liability that comes with incorporation and ensures your personal assets are separate from those of the entity. Company formation also gives you access to better financing to raise capital and tax benefits with the Canadian Revenue Service that includes the Federal Small Business Deduction (SBD) if you are an SME.
The benefits of company formation in Canada are:
- Choice of incorporating under either provincial law or federal law
- Limited liability that results from a corporation
- A separate legal entity from the directors and shareholders
- You can transfer the entity from one person to another
- Tax benefits, especially from tax deductions for Canadian small businesses
- Continuous existence for your entity beyond the passing of an owner