Share capital

Share capital is the sum of all the shares that a company has the right to sell to its owners in exchange for their invested money. Described in the articles of association (the document that creates the company), it is divided into categories, each granting different rights: voting rights, receiving a share of the profits, etc.

Brief

Defined in the articles of incorporation (the official document that creates the company), at the federal level or in Quebec
Ordinary shares: they grant voting rights, a share of profits (dividends), and a contribution to the company's value.
Preferred shares: tailored rights, practical solutions to prepare for the transfer of the business
A flexible share capital structure makes it easier to organize your taxes later on.
Bien structuré, il peut ouvrir droit, à la vente, à l'exonération cumulative des gains en capital, environ 1,25 M$ par actionnaire admissible en 2026

Why does this matter?

Imaginez une pizza : le capital-actions décide d'avance en combien de pointes on peut la couper et qui a le droit d'en recevoir. Beaucoup d'entrepreneurs choisissent à la création un capital-actions générique sans y penser, puis paient cher, des années plus tard, pour le réorganiser. Une structure bien pensée dès le départ ouvre des portes : verser une part de profits différente selon les catégories de propriétaires, faire entrer un conjoint ou un investisseur, préparer la relève. Elle peut aussi donner accès, à la vente, à l'exonération cumulative des gains en capital : environ 1,25 M$ de gain à l'abri de l'impôt par actionnaire admissible en 2026, sur des actions admissibles de petite entreprise. C'est aussi le capital-actions qui rend possible une convention entre actionnaires claire et l'ajout d'une société de gestion (Gesco). Attention : les règles fiscales qui encadrent les profits versés aux membres de la famille sont strictes. Bankeo vous présente gratuitement un comptable vérifié qui aligne votre capital-actions sur vos objectifs, et on reste à vos côtés.

Frequently asked questions

What exactly is social capital?

These are all the shares that your company has the right to create and issue to its owners in exchange for their money. It's essentially the company's capital pooling plan: it defines who owns what and what rights each share grants (voting, receiving a share of the profits, benefiting from an increase in value).

What is the difference between ordinary and preferred shares?

Ordinary shares generally grant the right to vote, receive a share of the profits (a dividend), and benefit from an increase in the company's value. Preferred shares offer special rights, often a priority share of profits or a predetermined redemption value, useful for preparing for the transfer of ownership or the arrival of an investor.

Can the share capital be changed after the company has been created?

Yes, by amending the articles of association or reorganizing the company, but these operations require professionals and may incur taxes. It is almost always cheaper to plan for flexible share capital from the outset than to redo everything later, when the shares have increased in value. Bankeo provides you with a free, vetted accountant to assist with company formation, at no cost to you, and we remain by your side throughout the process.