Incorporation 101: How To Obtain A Business Number
In the earlier times when one had to get married, all they had to do is make a public proclamation. However, in the present times, an arrangement like this is considered void unless there is some legal evidence. This is precisely true in the context of registering your corporation federally or provincially. If you own a business in Canada, you have to get it incorporated as per the legal guidelines set by the Canadian Business Corporations Act (CBCA). Getting a business number is an important part of this process.
Let’s take a look as to how you can obtain a business number for your company:
What is a Business Number (BN)?
A business number is a unique nine-digit number used to identify businesses legally. It is part of a unique federal government numbering system. The purpose of having a business number is to identify your company and the accounts it maintains with the Canada Revenue Agency (CRA).
Why have a Business Number (BN)?
The core purpose of having a BN is to allow Canada Revenue Agency to create various business accounts such as Goods and Services Tax (GST) or Harmonized Sales Tax (HST), depending on your province, for various purposes including payroll deductions, corporate taxation, and levitation of import and export duties and taxes.
Process of obtaining a Business Number
Step 1. Get your Business Incorporated
In order to incorporate your business, you need to complete the following processes:
1. Name your Corporation
Find a suitable name for your firm and make sure it is unique. Run a search on NUANS while making sure the search report on the proposed name is not more than 90 days old.
2. Complete the Articles of Incorporation
File in your company bylaws and establish your company structure. Once your articles are registered, they can be modified only post the payment of a $200 fee .
3. Establish the Initial Office Address and the First Board of Directors.
Choose an official address where you will be keeping all your corporate records and other official documents. All your official documents will be sent to you at this address, even your confirmation letter post incorporation.
4. Fill the Required Forms
You can fill your application form online or via mail. This application will be inclusive of your request for a certificate of incorporation and your filing fee.
5. Process your Application with Corporations Canada
In this step, Corporations Canada verifies the validity and accuracy of your application and completes the process of incorporation.
Step 2. CRA Issues A Business Number
Once your business is incorporated by Corporations Canada, the Canada Revenue Agency (CRA) is asked to issue a business number for your firm. Post the completion of the same, the CRA will register your firm and send you a confirmation letter, which will include your BN and the accounts registered.
Getting your business incorporated can be a tedious process. Reach out to our team of legal experts at Prowse Chowne to help you with the process and make it easier for your organisation.