Incorporate your business

Incorporate your business for only $499 + tx *

Take advantage of our fast and affordable business incorporation service in Quebec and Canada! 

*Government fees will apply.

Incorporate now!
A incorporation process!
Starting your business requires a solid legal and commercial foundation to ensure the successful growth of your organization! Incorporate your business with Propulsio 360 in less than 10 minutes!

Our incorporation package includes: 

  • Online incorporation form completed in less than 10 minutes
  • Verification and validation of the form by our lawyers
  • Articles of incorporation with share capital
  • Name search (for incorporation with a name) *an additional fee of $100 may be added
  • A complete digital minute book (organization resolutions and registers)
  • Sales tax registration (GST/HST, QST (if required))
  • Access to complementary services for start-ups

After completing the online form, a member of our team will contact you shortly. Your certificate and all related documents are then sent by email.

Incorporation in Quebec and Canada

Start your business in less than 10 minutes with a solid legal foundation and increase your chances of business success.

Incorporate now!Book a free consultation

Types of incorporation

Frequently asked questions

Numbered companies are usually incorporated within 24 to 48 hours. Your certificate of incorporation, your Quebec business number and your digital corporation book will be sent to you by email. Please note that during the holiday season the processing time is 3 to 5 business days.

Credit cards such as Mastercard, Visa and American Express can be used to make your payment. Payment for your incorporation will be processed at the end of the online form.

We are sorry for the inconvenience and we want to help you. Send an email to incorporation@propulsio360.com with your full name, phone number, technical problem and best times to contact you. A member of our team will get back to you shortly.

Yes, if you're an entrepreneur just starting out, we can help you get off on the right foot.  Our customized start-up packages will set you up for success. We offer two options: get the tools you need to easily manage your own accounting or have accounting professionals manage it all for you. Learn more about our packages. Learn more...

The good news and bad news is that there is no magic formula! At Propulsio 360 we always recommend that entrepreneurs consider the following aspects:

The income tax threshold
The first aspect to consider is the income threshold. In this regard, one must ask whether it is more advantageous for an individual to be taxed as a “person” or as a “corporation”. In Quebec, beyond a certain income threshold, the government imposes a tax rate of more than 52% of taxes on your income.

Business risks
Entrepreneurs need to assess the risks inherent in their company's operations. Is it appropriate to have a separate legal entity? Specifically, they need to ask whether they expose themselves to the risk of being sued. Is their product or service dangerous? Some products can be flammable and taking out an insurance policy allows entrepreneurs to separate personal and professional liability. Certain industries have inherently more risk (ex the food industry).

Inventory
Consider the level of inventory the business requires. In many cases, such as with tradespeople, the business requires significant inventory, leading to the additional responsibilities that come with it. Therefore, we advise an evaluation of whether the individual wants to assume this responsibility or delegate it to a separate legal entity.

Employees
Finally, hiring employees also comes with responsibilities. As a self-employed person, you can be personally sued if a problem or conflict arises.

In short, an assessment of these factors can be helpful as you consider whether it is more advantageous to assume these responsibilities or to transfer them to an incorporated company.

First, you must determine the legal status of the business: federal or provincial. Then, to incorporate your business, you must choose the name of the company. The Legal Publicity Act requires that you register your business using a French name in Quebec. There are several techniques to get around this requirement. Learn more about our Business Name and Trademark Creation services. You also have the option of creating a company with a numerical designation. 

At the end of these two steps, it is necessary to create the constitutive documents and define the status of the company. These are the founding documents that precede the organization of the company. For example, the documents concerning the categories of shares, the date of creation of the company and the registered office of the company.

On the other hand, it is necessary to deal with the internal organization of the company. During this phase, the company creates a company book allowing the updating of the register for the directors, shareholders as well as the number of issued and paid shares. This is also the stage during which the directors are elected. In short, the entire history of the company is created at this time.

Finally, the shares must be issued to have a properly organized incorporated corporation.

Our incorporation services and legal team can help you with all of the steps.

  1. Separate legal entity

  2. Limited liability
  3. Easier access capital
  4. Lower tax rate 

Incorporation is more expensive in the sense that the business must pay the incorporation fees. An entrepreneur may also pay lawyers' fees and fees to the Registrar of Companies.

On the other hand, the obligations of a corporation are more cumbersome administratively and more costly from an accounting (preparation of financial statements, separate tax returns, etc.) and legal (maintaining a corporate book, etc.) perspective.

Provincial or federal incorporation?

In Canada, it is possible to incorporate under the Canada Business Corporations Act (CBCA) or the Quebec Business Corporations Act (QBCA). Each system has its advantages and disadvantages, which must be evaluated according to the purpose of the business and its objectives.

CBCA:

First of all, an incorporation under this law allows you to extend your activities to the whole country, even internationally. Moreover, the head office can be located anywhere in Canada.

In addition, this regime provides increased protection of the company's name across the country. In this perspective of protection, a paid report (called NUANS) is required to ensure that your name is sufficiently different from its peers and does not confuse the public.

However, federal incorporation is more complex and costly than its provincial counterpart. Not only do you have to incorporate in Canada, but you also have to register in all the provinces where you want to do business, which means additional fees and procedures. As for restrictions, the shares issued must always be fully paid before their issuance, one quarter of the company's directors must be Canadian residents and your company name must respect the Charter of the French Language if you operate in Quebec.

QBCA:

This plan is ideal for companies that wish to operate only in Quebec. The head office must be located in Quebec.

Its main advantage is its simplicity and low cost. You only have to incorporate once and update your registration annually. In addition, it is possible to issue shares that have not yet been fully paid up and there are no restrictions on the residency status of the members of the board of directors.

On the downside, although the name of the corporation is registered in Quebec, it is not protected in the rest of Canada. Separate provincial regulations will apply.  In addition, you must absolutely comply with the Charter of the French Language when choosing your name.

Change of mind?

Finally, you realize that it would have been better to incorporate under federal law or vice versa? Don't panic! It is possible to proceed with a continuation, for a fee. However, note that there is no guarantee that you will keep your current name.

Want to take the leap and incorporate? Make an appointment with us to discuss the best option for your needs!

Incorporation: 299$ 

Governmental fees: 379$

Additional fees for non-Canadian residents.

Incorporation: 299$ 

Governmental fees for federal incorporation: 379$

Additional fees for non-Canadian residents.

First, you must determine the legal status of the business: federal or provincial. Then, to incorporate your business, you must choose the name of the company. The Legal Publicity Act requires that you register your business using a French name in Quebec. There are several techniques to get around this requirement. Learn more about our Business Name and Trademark Creation services. You also have the option of creating a company with a numerical designation. 

At the end of these two steps, it is necessary to create the constitutive documents and define the status of the company. These are the founding documents that precede the organization of the company. For example, the documents concerning the categories of shares, the date of creation of the company and the registered office of the company.

On the other hand, it is necessary to deal with the internal organization of the company. During this phase, the company creates a company book allowing the updating of the register for the directors, shareholders as well as the number of issued and paid shares. This is also the stage during which the directors are elected. In short, the entire history of the company is created at this time.

Finally, the shares must be issued to have a properly organized incorporated corporation.

Our incorporation services and legal team can help you with all of the steps.

What is business incorporation?

“It is the process of forming a corporation, a legal entity separate from its founders or owners. It has an independent legal personality, an entity separate from the individuals that make it up. Once incorporated, the corporation owns the assets of the business such as customers, products, property and income. It is also responsible for the various expenses and obligations of the business: salaries, rent, income taxes, and consumption sales taxes.”

“There is no difference between the sole proprietorship and the individual or “self-employed”, they are one and the same. Indeed, as a representative of the company, the individual shares its assets, declares the income of the company in his personal taxes and is personally responsible for the obligations of the company (customers, suppliers, subcontractors, creditors, etc.). The incorporated business (corporation), on the other hand, is an entity distinct from the individual. As such, it carries out all its activities in its own name.

For example, as a sole proprietorship, I can use my first and last name for my business. However, if I decide to do business under another name, while being a sole proprietorship, I am obliged to register at the Registraire des entreprises by paying a fee of $42. This process is imperative for other businesses to be able to find another business online. Also, it should be noted that if an individual has a very common name in Quebec, it is essential to register.”

The income tax threshold
The first criterion concerns the income threshold. In this regard, one must ask whether it is more advantageous for an individual to be taxed as a person or as an incorporation. In Quebec, beyond a certain income threshold, the government imposes the payment of more than 52% of taxes on your income. By the way, I have a law professor who used to say that there are two things in life that are certain: death and taxes. All of this is to say that you can’t avoid these two things but, you can make them more effective.

Business risks
In terms of the second criterion, you need to ask yourself about the risks inherent in your company’s operations. Is it appropriate to have a separate legal personality? Specifically, you need to ask whether the individual exposes himself or herself to the risk of being sued.

Is your product or service dangerous? Some products can be flammable and taking out an insurance policy allows entrepreneurs to separate personal and professional liability. The food industry also comes to mind.

The inventory
Third, study the inventory of one’s business. In most cases, craftspeople have a lot of inventory and many responsibilities that come with it. Therefore, I advise evaluating whether the individual wants to assume this responsibility or delegate it to a separate legal entity.

Employees
Finally, hiring employees also comes with responsibilities. If there is a problem with the NOSH, you can be personally sued as a self-employed person.

In short, consider whether it is more advantageous to assume these various responsibilities or to transfer them to an incorporated company.”

“I would say that incorporating a corporation is a personal choice. Certainly, if one considers the factors listed above and answers yes to any of these questions, it may make sense to incorporate. However, I often recommend considering one’s total income.

Incorporating can make sense in terms of expenses and tax treatment of the total income. As an example, if the person also has another job (full-time, part-time) or earns related income, incorporation can optimize the tax treatment and use only the amounts needed.”

“Incorporation is more expensive in the sense that the business must pay the more expensive incorporation fees. An entrepreneur may also pay lawyers’ fees, fees to the Registrar of Companies.

On the other hand, the obligations of a corporation are more cumbersome administratively and more costly from an accounting (preparation of financial statements, separate tax returns, etc.) and legal (maintaining a corporate book, etc.) perspective.”

“First, you must determine the legal status of the business: federal or provincial. Then, to incorporate your business, you must choose the name of the company. The Legal Publicity Act requires that you register your business using a French name. There are several techniques to get around this requirement. For example, by registering Propulsio which means propulser in Latin, I added the words “business consultants” so that it would be accepted by the Registraire des entreprises. You also have the option of creating a company with a numerical designation.

At the end of these two steps, it is necessary to create the constitutive documents and define the status of the company. These are the founding documents that precede the organization of the company. For example, the documents concerning the categories of shares, the date of creation of the company and the registered office of the company.

On the other hand, it is necessary to deal with the internal organization of the company. During this phase, the company creates a company book allowing the updating of the register for the directors, shareholders as well as the number of issued and paid shares. This is also the stage during which the directors are elected. In short, the entire history of the company is created at this time.

Finally, the shares must be issued to have a properly organized incorporated corporation.”

“In 2014, as a result of the overhaul of the Quebec Act, the provincial Act and the federal Act have become very similar, if not almost similar. However, there are certain aspects where there are more restrictions at the federal level. For example, at the federal level, the election of a board of directors consisting of 25% of directors who are Canadian residents is mandatory. Such a restriction does not exist in Quebec.

Furthermore, a person who incorporates a business at the federal level must have its head office in Canada, whereas a person who incorporates a business at the provincial level must have its head office in Quebec. Finally, I would like to point out that most people who incorporate their business in Quebec do so because the federal government charges $200 more than the provincial government.”

“The answer to this question is yes, at the federal level, a corporation absolutely must have a board of directors. However, at the provincial level, the board of directors is not always mandatory because a sole shareholder may choose not to elect a board of directors by having, by written declaration, withdrawn all the powers normally reserved to the board of directors by the Act, in order to appropriate them in advance.”

General partnership
“A general partnership allows you to test a partnership while operating as a self-employed person. This option is very inexpensive. I often advise entrepreneurs to start with this option and then incorporate later.

NPO
An NPO works like a corporation except that there are all sorts of much stricter rules. Many times, forming an NPO is attractive because an NPO does not pay taxes. However, this implies that the internal management and accounting is excessively strict.

Furthermore, an NPO requires much more organization and a mandatory board of directors. It is a corporate structure where the founder can get kicked out, whether he or she is a board member or even the CEO.

COOP
This is a very common business model among craftspeople because it allows them to pool resources and act as a group. By buying raw materials in bulk, contractors can get a discounted rate. I would say it’s like the Costco of the craft world.

Also, the CO-OP is a very solidarity-based model. In this sense, the additional revenues of the cooperative are redistributed among the members. Also, its operation is similar to that of an NPO since there is a board of directors and the founder is exposed to the risk of being expelled.”

“I would say surround yourself with professionals, speak with an accountant, a lawyer or both. The accountant will be able to determine if this is a good option for the craftsperson. The lawyer will be able to assess if it’s worth doing at this point in time.”

“If you’ve been self-employed for several years and you start making a lot of money and have a lot of inventory, assets, etc., at the time of incorporation, you’ll need to sell your assets to the company. But, people often overlook this step.

You have to do a formal process without being taxed on it. This is called an asset rollover. If you don’t do it, you’ll get a nasty surprise with Revenue Canada or Revenue Quebec.”

Is there a point in the evolution of a business when its legal constitution needs to be questioned? Which one?
“When you have multiple projects, take into consideration all the things I mentioned above.

Another case is when you have collaborative projects with other artisans or when you decide to export your products abroad. Sometimes it is more advantageous to have an incorporated company. That’s why you should consult a lawyer. Maybe your incorporation is correct or maybe you need to start another business in Ontario because you are thinking of getting grants.

On the other hand, if for example you want to export your products without giving your partners access to the activities of your main business. And, if it is a specific project where you decide to organize a festival with them. In this case, it may be appropriate to create a company separate from yours. I would say that when an entrepreneur exports, even to form partnerships, I suggest revising the structure.

The other case is when the business generates significant revenue.” Translated with www.DeepL.com/Translator (free version)Also, the CO-OP is a very solidarity-based model. In this sense, the additional revenues of the cooperative are redistributed among the members. Also, its operation is similar to that of an NPO since there is a board of directors and the founder is exposed to the risk of being expelled.”

What advice would you give to an artisan thinking about incorporating their business?
“I would say surround yourself with professionals, speak with an accountant, a lawyer or both. The accountant will be able to determine if this is a good option for the craftsperson. The lawyer will be able to assess if it’s worth doing at this point in time.”

What are the pitfalls to avoid?
“If you’ve been self-employed for several years and you start making a lot of money and have a lot of inventory, assets, etc., at the time of incorporation, you’ll need to sell your assets to the company. But, people often overlook this step.

You have to do a formal process without being taxed on it. This is called an asset rollover. If you don’t do it, you’ll get a nasty surprise with Revenue Canada or Revenue Quebec.”

“When you have multiple projects, take into consideration all the things I mentioned above.

Another case is when you have collaborative projects with other artisans or when you decide to export your products abroad. Sometimes it is more advantageous to have an incorporated company. That’s why you should consult a lawyer. Maybe your incorporation is correct or maybe you need to start another business in Ontario because you are thinking of getting grants.

On the other hand, if for example you want to export your products without giving your partners access to the activities of your main business. And, if it is a specific project where you decide to organize a festival with them. In this case, it may be appropriate to create a company separate from yours. I would say that when an entrepreneur exports, even to form partnerships, I suggest revising the structure.

The other case is when the business generates significant revenue.”

How Propulsio can help you:

  • Choose the right legal entity for your project (sole proprietorship, partnership, corporation, cooperative and non-profit organization);
  • Choose a business name that is not confusing and that allows you to eventually register a trademark;
  • Create and maintain your digital minute book;
  • Register for a sales tax account;
  • Draft and negotiate a shareholder agreement or partnership agreement.
Blog articles on incorporating your business

Starting your business requires strong legal and business foundations to ensure good and steady growth.

How to Start a Business in Quebec:

In Quebec, you have the option to incorporate a numbered company (ex. 1234-5678 Quebec Inc.) or incorporate a corporate name (ex. XYZ Consulting Inc.).

Numbered Company

If you choose to incorporate a numbered company, the online service at the Quebec Corporate Registry will designate a number for your company.

Corporate Name

On the other hand, if you choose to incorporate a corporate name, you will have to follow a set of guidelines:

  • For any Quebec-based business, the name of your business must have a French element.
  • Your name should be composed of a generic component (Consulting), a specific component (XYZ), and a particle component (ex.: Inc.)

In order to find if your name is already taken, you can simply search the Quebec Corporate Registry for your chosen name. If no name appears, then the name is likely available.

To be extra cautious, we do recommend checking the federal registry as well as all federal corporations must comply with the NUANS database which is a database comprised of all business names and trademarks in Canada.

Once you have your corporate name or numbered company number, you must then prepare your articles of incorporation which are filed at the Quebec Corporate Registry. Your articles of incorporation are the legal documents that are submitted to the Provincial or Federal registry that include the following:

  • The official name of your business and the “other versions” of your name
  • The full registered head office address of the corporation
  • The number of directors of the corporation
  • The full names of the directors of the corporation and their addresses
  • Description of Share Capital (ex. Share Class, Voting Rights…etc.)
  • Restriction on Transfer of Securities or Shares
  • Limits on Activities of the Corporation
  • Other Provisions
  • Full name and signature of the founders of the business

Our online incorporation form has made this process easier for our clients. You can also book a free consultation with one of our lawyers, should you need any assistance with the process.

Once you have your articles of incorporation prepared, you will have to access the Quebec Corporate Registry and constitute a corporation. You will include and file the documentation described in step 2.

Once your company is constituted, you will need to file an initial declaration at the Quebec Corporate Registry. The initial declaration is a more in-depth application regarding your articles of incorporation.

 

You will be including:

  • The “other names” or “assumed names” that your business may be operating under
  • The full names and addresses of each director of the corporation
  • The position of each director of the corporation (President, Vice-President, Secretary, Treasurer)
  • The full names and addresses of the shareholders of the corporation
  • The activities of your corporation
  • The number of employees
  • Full name and signature of the one of the founders of the business

 

Our online incorporation form has made this process easier for our clients. You can also book a free consultation with one of our lawyers, should you need any assistance with the process.

Once your company is officially incorporated, you need to obtain your GST/QST tax numbers.

To register to obtain your sales tax numbers, you will need to contact Revenue Quebec. Be prepared as Revenue Quebec will need certain information from you before registering the company.

 

You will need to provide them with the following information:

 

  • Business Number of the Corporation (NEQ Number)
  • Name of the Corporation
  • Names, home address, phone numbers, and social insurance numbers of each director of the corporation
  • Financial Year End of the Corporation
  • Will you want to pay your taxes on a monthly, quarterly or annual basis?
  • Will you want your documentation in English or in French?
  • What is the estimated revenue of the company?

Once you have incorporated your company and obtained your sales tax numbers, you will need to create your minute book. A minute book is a permanent and detailed record of your corporation’s rules, activities and decisions.

 

Your Minute Book will contain the following:

  • Articles of Incorporation
  • By-Laws of the Corporation
  • Resolutions of Corporate Minutes and Meetings
  • List of the Board of Director Members
  • List of the officers of the Corporation
  • List of the Shareholders
  • Securities Registry
  • Share Certificates

 List of the significant positions of the Corporation and who has the authority to act in the name of the corporation

In Quebec, having a minute book is mandatory.

This is often the most overlooked part of starting a business. Our lawyers can help you set a proper minute book that is up to date with the proper documentation from the beginning stages of your business.

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