Undoubtedly, the most commonly used legal form to conduct business in Quebec is the "Company".
A company is a legal entity whose creation is authorized by law and is recognized by a certificate of incorporation issued by the government. This legal person is as distinct from its shareholders, as two natural persons may be. Consequently, one of the important benefits of incorporating a company in order to do business is the limited liability of its shareholders.
In Quebec, there is the Business Corporations Act (which largely replaces the Companies Act) pursuant to which a company may be incorporated. At the federal level, a company may be incorporated under the Canada Business Corporations Act. In layman's terms, the term "incorporation" is used to describe the act of creating a legal person, which will be referred to as a "corporation" or "company", depending on whether it was authorized by the federal or provincial government.
This legal instrument not only protects the shareholders' personal liability, but also provides a business with some interesting tax planning strategies. Since the company doesn't have to pay any profits to its shareholders, it can benefit from a tax deferral on the funds allocated to operating expenses and growth plans.
There are companies specialized in providing standardized documents of incorporation. These companies that deal with big volumes are undoubtedly useful and necessary, which is why we have partnered with one of them (see Paraco.)
However, it may be beneficial to use the services from a firm like ours, since each business or project has some particularities that may require a more customized approach. With the help of a lawyer, you can make well-informed decisions, and receive expert advice on a variety of topics, which can be invaluable to start a new company and ensure its long-term viability. (See Corporate Bookkeeping).
In this practice area, our team meets your needs in several ways, including: