Expanding your business beyond provincial lines? We get the thrill and challenges involved in expansion. Extra-provincial registration may be considered technical jargon, but it really is your key to business in several provinces. Consider it having a business passport, without it, you cannot lawfully carry on business in any province other than the one you are incorporated in.
At Canada Incorporation Agency, we have assisted thousands of companies with the intricacies of extra provincial registration. If you’re a small business wanting to expand or an already established company reaching out for new opportunities abroad, we’ll assist you with each step of the way through our extra provincial registration process.
Email: info@incorporationagency.ca
Phone: +1 647.945.8893
Address: 1270 Central Pky, W, Mississauga
What is Extra Provincial Registration?
Extra provincial registration is the formal process of getting approval to do business within a province of Canada in which your corporation initially is not incorporated. It’s sort of like making yourself known in a new province and introducing yourself by saying, “Hello, we’d like to do business lawfully here.”
The legal environment
Each province in Canada has its own set of regulations for out-of-province businesses operating within its boundaries. Extra provincial registration guarantees compliance with these provincial requirements without altering your initial corporate form.
What we generally say is that if your business is like an individual with an Ontario driver’s license, you will still need to obey the traffic law while driving in British Columbia. In the same manner, your corporation will need to register as well as meet the rules in each province in which it intends to do business.
Why It Matters to Your Company
You could be putting your business in serious legal trouble without proper extra provincial registration. We’ve already seen companies lose the right to sue or defend themselves in court, be handed large fines, or be banned from buying property in any province.
When Do You Need Extra Provincial Registration?
The timing of your additional provincial registration is based on various circumstances. In most cases, you need to register beforehand before you begin “carrying on business” in a new province.
Before you begin operations
We always recommend our clients registering extra provincially beforehand before starting any business operations in a new province. This is done to avoid any legal complexities and ensure that operations move forward with utmost ease from day one.
Even in individual transactions
Surprisingly enough, an individual business transaction could involve additional registration in the province. We have had clients who believe that they are only making one sale when in fact they need full registration to meet provincial requirements.
Carrying on Business
The concept of “carrying on business” is essential to determine when additional provincial registration is required. The provinces of Canada broadly interpret “carrying on business” to include most business activities.
Constitutes Carrying On Of Business Conducting business encompasses maintaining an office, warehouse, agent, or agency within a province. It further encompasses owning property (except for security interests such as mortgages) or keeping any business presence on an ongoing basis.
We advise our clients to consider it this way: if you’re doing anything beyond merely selling goods online to customers in some other province, you’re probably engaging in business there and require additional provincial registration.
Activities That Trigger Registration Requirements
Certain activities that certainly need an additional provincial registration are:
- Setting up a physical office or warehouse.
- Recruiting staff in the province
- Securing regular contracts with regional suppliers
- Purchasing or renting property for business use.
Maintaining inventory or equipment in the province
Canadian vs. Foreign Corporation Requirements
The requirements towards extra provincial registration across Canada varies off the basis including whether your corporation is Canadian or Foreign.
Canadian Corporation Requirements
If your corporation is founded in Canada either federally or in some other province, then your process of registering extra-provincially is quite straightforward. You will not be required to have a formal license but do need to make some specific filings with your provincial government.
We assist Canadian businesses with
- Conducting NUANS name searches
- Filing Initial Returns within required timelines
- Furnishing incorporation documents in duplicate
- Providing amendments and updates as required.
Foreign Corporation Requirements
Foreign companies have more complicated extra provincial registration requirements
The procedure is multi-step in nature with extra paperwork that we oversee for our clients with great caution.
Key requirements for foreign corporations are
- Filling formal license requests
- Appointment of an agent for service in the province
- Acquisition of certificates of status from home jurisdictions
- Basing legal opinions on available certificates.
Benefits and Drawbacks of Extra Provincial Registration
Perspective of the advantages and disadvantages of registration beyond the province is essential in making wise business expansion decisions.
Advantages of Extra Provincial Registration
Extra-provincial registration provides the following advantages:
- Legal protection and the right to sue or defend in court.
- Conformity with provincial regulations
- Right of ownership over property within the province.
- Local customers and partners’ professional credibility
- Access to provincial business programs and incentives
Step-by-Step Registration Process
The process of provincial registration is province-specific, but we have created an organized process that works in any province in Canada.
Initial Assessment and Planning
We begin each additional provincial registration by evaluating your business activities and establishing precise necessities. This involves analyzing your business model, intended activities, and expansion timeline.
Document Preparation & Filings
Accurate documentation is imperative for the success of extra provincial registration
- Corporate records of your home jurisdiction
- Existing certificates of status or good standing
- NUANS name search reports
- Filled-in application forms -Agent for service appointments where necessary.
Filing and Follow-up
Once your documents are ready, we submit your additional provincial registration with the relevant provincial authorities. We check on the status of your application and deal with any requests for further information.
Estimated Fees Associated with Registration
Extra Provincial Registration across Canada vary by province and the actual corporation type. We believe in transparent pricing so we’ve outlined the most expected cost below:
Government Filing Fees
By each Provinces government they charge filings feed for extra provincial registration. These fees typically are in the ball park of $100-$500, dependent on both the province and corporation type.
Professional Service Fees
Initially, fees for extra provincial registration very by many different factors, with us we can simply streamline the registration process, by helping you from start to finish
We have to consider factors like:
- Number of provinces requiring registration
- Complexity of your business structure
- Urgency of your timeline
- Additional services required
When it comes to ongoing compliance and its cost, you have to remember that extra provincial registration of any type across Canada factor in annual filings updates, and maintaining the compliance across selected and multiple jurisdictions.
Common Mistakes to Avoid
We’ve witnessed numerous companies make an expensive mistake with additional provincial registration. Here are the most typical ones and the best way to avoid them.
Delaying Registration
Among the greatest errors is initiating business operations without finalizing additional provincial registration. This will lead to fines, legal issues, and failure to enforce contracts.
Inadequate Recording
Incompletely filled-out or erroneous documentation can delay your additional provincial registration or lead to rejection. We make sure that all of our documents are completed correctly before submitting.
Ignoring Ongoing Obligations
A large number of companies are able to carry out initial extra provincial registration but neglect subsequent compliance. This can cause your registration to be cancelled along with legal implications.
Misunderstandings
Each province is different in its extra provincial registration requirements. One size does not fit all when it comes to provinces. We make sure you know what is required in each province.
Getting Professional Help
Whereas it is possible to do extra provincial registration yourself, professional service can save you time, avoid errors, and minimize compliance risk.
Why You Should Incorporate in Canada
As experts in registration in all of the provinces of Canada, our experience comprises:
- Thousands of successful registrations.
- In-depth understanding of provincial regulations
- Developed relationships with provincial governments
- Comprehensive compliance support
With our service approach not only do we finish your provincial registration but become your support and compliance partners.
We watch for deadlines, make preparations for filings, and remind you of regulatory updates that could impact your business.
FAQs:
1. How long does extra provincial registration take?
The timeline for extra provincial registration varies by province and corporation type. Canadian corporations typically take 2-4 weeks, while foreign corporations may take 6-12 weeks depending on documentation requirements.
2. Can I do business in several provinces with one registration?
No, you will need extra provincial registration in each of the provinces where you wish to conduct business. Each province possesses its own registration process as well as requirements. For Ontario extra provincial registrations, click here for further guidelines.
3. What is the consequence of failure to complete extra provincial registration?
Failure to complete extra provincial registration could lead to $25,000 fines to corporations, prohibition from suing or defending in court, and prohibition from owning property within the province.
4. Do I need an address in every province for registration?
You do not need an address in every province but foreign corporations are required to name an agent for service. Canadian corporations do need to give an address of registered office that can be in its province of residence.
5. My extra provincial registration can be cancelled, can it?
Yes, the province can cancel your extra provincial registration on grounds such as failure to carry on business within two years, failure to comply with filing requirements, or for criminal convictions.
Final Thoughts
Extra-provincial registration in Canada is a necessary step for any company that wishes to expand business in any other province. The process does appear to be complicated but knowing the requirements and having proper professional guidance helps make it doable.
We have walked you through the important points of extra-provincial registration, from knowing when it is necessary through the process of keeping it current. Don’t forget that there are differences from province to province, so what is applicable in one place will be different in another.
Let Canada Incorporation Agency guide you through choosing between Federal and Provincial Incorporation with professional assistance and easy, hassle-free service for your non profit.
Contact us and begin your incorporation today.
