When you start a business, one of the first essential tasks is to register it with the Registraire des Entreprises du Québec (REQ). Sometimes, self-employed people don't register their business right away, preferring to include their business income and expenses in their personal income tax returns.
However, it soon becomes necessary to take the next step, which is registering the company. This process is relatively straightforward. To make things easier, here's everything you need to know about registering a business in Quebec.
One of the aims of the Legal Publicity Act is to consolidate information on most companies, incorporated or not, and individuals doing business in Quebec. This information is recorded in the Registre des entreprises du Québec (REQ), making it accessible to citizens, business partners and government agencies.
When applying for registration, companies also obtain a Quebec Enterprise Number (NEQ). This number facilitates identification of the company by various organizations.
According to the REQ, most companies and individuals carrying out commercial activities in Quebec are required to submit an application for business registration. This includes
However, companies incorporated in Quebec that have already made the initial declaration of a legal person in the sole proprietorships register are not required to apply for registration. Registration is automatic upon incorporation.
There are different ways to register a business in Quebec, depending on its legal structure. The following business registration services are available:
A variety of basic information and documents are required to register a company. Although this information may vary slightly depending on the type of business, it is generally the same:
Registration fees vary according to the legal structure of the company.
PLEASE NOTE: As of September 14, 2022, corporations governed by Ontario law, including joint-stock companies and not-for-profit corporations, are exempt from paying Quebec registration fees.
It should also be mentioned that registered companies must pay annual registration fees to the REQ.
Once registered, the newly-registered company will have certain legal obligations to fulfill.
Annual update :
Every year, registered companies must file an update declaration within a set timeframe. This step is mandatory for all companies registered with the Registraire, whether or not they have any changes to declare. The annual update takes effect the year following the company's registration.
If the update is performed after the specified period, a penalty will be applied.
However, there is an exception for corporations and registered sole proprietorships. They can file their annual update at the same time as their T2 corporate income tax return. If all the information is correct, simply tick the box on line 39 of the CO-17 return.
Current update :
If any changes occur after the annual update, the company must perform a current update. Registered companies are required to declare any changes within 30 days.
Rules for choosing a new company name :
When registering, companies must choose a name for their establishment. However, this name must comply with certain rules and standards established by the REQ.
Name types :
There are two types of company names in Quebec: the constitutive name and the other name.
The constitutive name is the legal name of the company, while the other name (or assumed name) may be used to conduct business in Quebec. If a company has several other names, they must all be registered with REQ.
Respect for the French language :
The trade name under which a company operates in Quebec is subject to the regulations of the Charter of the French Language. It is a legal condition for the creation of a corporation.
A company name can be composed of several elements:
Use of a trademark in a language other than French :
It is possible to register a trademark in a foreign language as an "other name" of your company, under certain conditions. This name must be used to carry on business in Quebec. Otherwise, it must be used in connection with the holding of a real property right (other than a mortgage or priority).
Domain names and e-mail addresses :
If you use one or more domain names to conduct business in Quebec, such as Bankeo, you must register them with REQ. An e-mail address may not be used as a corporate or other business name.
There's only one solution: work with accountants who can help you make the right analysis of your situation, guide you through the various stages and help you choose the right form of registration.
So don't hesitate to contact us if you'd like to find an accountant adapted to your entrepreneurial reality to support you in this process. https://www.bankeo.ca/
Whether you fill out the form or talk to our team, we will get to know you, your business and the type of bookkeeper you are looking for.
Our solution will find you the 3 accounting specialists that best fit your needs and will contact you at the desired time.
100% free and without obligation, our team will accompany you to ensure the best possible match with your ideal accountant.
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