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 individuals do not immediately register their business, preferring to include their business income and expenses on their personal tax returns.
However, it quickly becomes necessary to move on to the next step, which is the registration of the company. This process is relatively simple to accomplish. To make things easier, here's everything you need to know about registering a business in Quebec.
The purpose of the Legal Publicity Act is to consolidate information on most companies, incorporated or not, and persons who do business in Québec. This information is registered in the Registre des entreprises du Québec (REQ) so that it can be accessed by citizens, business partners and government agencies.
By applying for registration, businesses also obtain a Québec enterprise number (NEQ). This number makes it easier to identify the company to different organizations.
According to the REQ, most businesses and individuals carrying on commercial activities in Quebec must apply for business registration. This includes:
However, businesses incorporated in Québec that have already made the initial declaration of a legal person in the register of sole proprietorships are not required to apply for registration. Registration is done automatically at the time of incorporation.
There are different methods for registering a business in Quebec, depending on its legal structure. The business registration services offered are as follows:
Providing a variety of basic information and documents is essential to registering a business. While this information may vary slightly depending on the type of business, it is generally the same:
The rates for the registration declaration vary according to the legal structure of the company.
NOTE: As of September 14, 2022, corporations incorporated under Ontario law, including corporations and not-for-profit corporations, are exempt from paying registration fees in Quebec.
It should also be mentioned that registered businesses must pay annual registration fees to the REQ.
Once registered, the newly registered company will have certain legal obligations to fulfill.
Annual Update:
Each year, registered companies must file an update declaration within a defined period. This step is mandatory for all businesses registered with the Registrar, whether or not they have any changes to report. The annual update takes effect the year following the registration of the company.
If the update is made after the specified period, a penalty will be applied.
However, there is an exception for legal persons and registered sole proprietorships. They can update their annual tax return at the same time as their T2 corporation income tax return. If all the information is correct, simply tick the box provided on line 39 of the CO-17 return.
Current Update:
If changes occur after the annual update, the company must perform a routine update. Registered companies are required to report any changes within 30 days.
Rules for choosing the name of a new business:
When declaring registration, companies must choose a name for their establishment. However, this name must comply with certain rules and standards established by the REQ.
Types of names:
There are two types of business names in Quebec: the constituent name and the other name.
The name of incorporation is the legal name of the business, while the other name (or assumed name) can be used to conduct business in Quebec. If a company has several other names, they must all be registered with the 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. This is a legal condition for the creation of a joint-stock company.
The name of a company 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 on the register as an "other name" of your business, under certain conditions. This name must be used to carry on business in Québec. Otherwise, it must be used in connection with the holding of a right in rem in immovable property (other than a mortgage or a priority).
Domain names and email addresses:
If you use one or more domain names to conduct business in Quebec, such as Bankeo, you must register them with the REQ. An email address cannot be used as a name of incorporation or other name of a company.
There is only one solution: do business with accountants to help you make the right analysis of your situation and accompany you through the different steps as well as choose the right registration formula.
So don't hesitate to contact us if you want to find an accountant adapted to your reality as an entrepreneur to accompany you in this process. https://www.bankeo.ca/
Whether it's filling out the form or talking to our team, we'll get to know you, your business, and the type of bookkeeper you're looking for.
Our solution will find you the 3 accounting specialists that best suit 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 connection with your ideal accountant.
Your request will be processed within a maximum of 48 working hours.
