Ever Heard of a CCPC? Demystifying the Benefits and How-To’s of Incorporation in Ontario

ByLaura Harvey
researching benefits of incorporation

So, you’re thinking of taking the plunge and starting your own business in Ontario – congratulations! It’s an exciting journey filled with learning and growth. But amidst the buzz of ideas and planning, you might stumble upon an unfamiliar term: CCPC. What does it mean, and is it something you need to know?

CCPC stands for Canadian-Controlled Private Corporation. In simpler terms, it’s a special type of incorporated business designed to support smaller, Canadian-owned businesses like yours (or maybe even the one you’re dreaming of creating!).

Why Incorporate a CCPC, You Ask? Here Are Some Potential Benefits:

  • Tax Advantages: CCPCs may qualify for lower tax rates compared to sole proprietorships or partnerships. This can mean keeping more of your hard-earned money in your pocket.
  • Limited Liability: Unlike a sole proprietorship, where you’re personally responsible for your business’s debts, a CCPC offers limited liability protection. This means your personal assets (like your house or car) are generally shielded from business liabilities.
  • Attracting Investors: If you envision your business growing big, incorporating can make it more attractive to potential investors who might be drawn to the structure and benefits it offers.

Who Can Incorporate a CCPC in Ontario? 

1. No Citizenship Requirement:
There is no requirement for the incorporators or directors of an Ontario corporation to be Canadian citizens or permanent residents. This means foreign individuals can hold these positions and establish a corporation in the province.

2.  Any individual must be 18 years of age or older and the corporation must have a physical address in Ontario to receive legal documents and notices on behalf of the corporation.

For Foreign Incorporators and Directors

Beyond the usual incorporation requirements, foreign individuals might need to:

  • Provide additional documentation: This could include proof of foreign identification and business registration in their home country (if applicable).
  • Comply with foreign exchange regulations: They need to ensure their activities comply with both Canadian and their home country’s regulations regarding foreign exchange transactions.

Who is Restricted From Incorporating in Ontario?

While there’s no direct restriction on who can incorporate a company in Ontario, there are limitations on who can hold specific positions within the corporation: directors and officers. These restrictions aim to protect the corporation and its stakeholders. Here’s who might be disqualified from acting as directors or officers in Ontario:

1. Individuals not discharged from bankruptcy: This ensures financial stability and protects the corporation’s assets and creditors.  If you have filed for bankruptcy, it is best to contract the trustee who oversaw your bankruptcy for complete understanding of your specific circumstance.

2. Individuals with significant unpaid judgments: This aims to minimize the risk of financial mismanagement and non-payment of debts.

3. Individuals with certain criminal convictions: Depending on the severity and nature of the offense, convictions can disqualify individuals to maintain the corporation’s reputation and ethical standing.

4. Individuals prohibited by regulatory bodies: Regulatory bodies like the Ontario Securities Commission (OSC) can impose prohibitions on individuals deemed unfit to hold such positions due to misconduct or violations.

5. Individuals with conflicts of interest: Situations where personal interests conflict with the corporation’s well-being can also lead to disqualification.

Remember: These are general guidelines, and the specific disqualification criteria can be complex and subject to change. Consultation with a qualified lawyer is crucial to determine if any specific individual involved in incorporation is disqualified based on their unique circumstances.

start a corporation

What Do You Need to Get Started?

 While the incorporation process involves some legal steps, it doesn’t have to be overwhelming. Here are the basic things you’ll need:

  • A catchy business name!
  • A registered office address in Ontario.
  • At least one director and one shareholder (who can be the same person).
  • Articles of incorporation outlining your company’s business activity and structure.

How Long Does it Take?

The incorporation process can typically be completed within1 to 2 business days, depending on the complexity and any potential delays.

Here’s Where Ontario Business Central Comes In!
We understand that navigating the intricacies of business registration, especially for something like incorporating a CCPC, can feel intimidating. That’s why we offer a simple and user-friendly online platform to help you through the process. With our step-by-step guidance and helpful resources, incorporating your CCPC can be a smooth and efficient experience.

Remember, incorporating a CCPC is a significant decision, and it’s crucial to consult with a qualified professional like a lawyer or accountant to ensure it aligns with your specific business goals and circumstances. But hopefully, this blog post has shed some light on the concept and sparked your interest in exploring the potential benefits!

So, are you ready to turn your business dreams into reality?
Visit Ontario Business Central today and let us help you on your entrepreneurial journey!

How Much is the Cost to Incorporate in Ontario?

Ontario Rush Numbered Incorporation – $490.90

Ontario Rush Named Incorporation – $547.40

Additional items we have available for you to select from:

  • Initial Notice – Provides listing to Province of Officer Positions
  • Corporate Supplies
  • Share Certificates
  • By-Laws
  • Minute Books
  • Corporate Embossers
  • Draft review of Articles
  • Registers of Directors, Officers and Shareholders
  • Import/Export Licence
  • HST registration set up
  • Payroll registration set up
  • Trade Name registration

INCORPORATE IN ONTARIO

Should you have any questions, please feel free to reach out to our staff for additional information and assistance.

inquiries@ontariobusinesscentral.ca
Toll-Free: 1-888-786-6259
Local: 1-416-599-9009
Fax: 1-866-294-4363
Office Hours: 9:00am – 5:00pm
Monday – Friday E.S.T.

Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.

Laura Harvey
Laura Harvey

Laura Harvey stands as a beacon of entrepreneurial support and expertise, embodying the spirit and drive of the community she serves. As the proud owner of Ontario Business Central Inc., Laura's journey is one of dedication, passion, and an unwavering commitment to nurturing the entrepreneurial landscape in Canada.

With over three decades of experience as a corporate specialist coupled with over 25 years of entrepreneurial ventures, Laura brings a wealth of knowledge and insight to her role. Her expertise is not just theoretical; it's built on the real-life challenges and triumphs of navigating the business world. This unique blend of professional and personal experience positions Laura as a relatable and trusted guide for those embarking on their entrepreneurial journey.

Beyond her role at Ontario Business Central, Laura has extended her outreach through the innovative YouTube series "Taking the Leap." This platform allows her to connect with new business owners, offering them a stage to share their stories and insights. "Taking the Leap" is more than just a series; it's a community where aspiring entrepreneurs can find inspiration, learn from the experiences of others, and gain practical advice on crucial corporate tasks like registering a business, updating business information, understanding tax account intricacies, and much more.

Laura's contributions extend into the digital world through her in-depth blogs for Ontario Business Central. Here, she delves into topics essential for entrepreneurs and business owners looking to start, manage, and grow their ventures. Her writing is a reflection of her passion for supporting entrepreneurial advancement and a testament to her deep understanding of the corporate sphere.

Laura Harvey is not just an entrepreneur; she's a mentor, guide, and fellow traveler on the path of business ownership. She embodies the ethos of "walking the walk," providing both the tools and the encouragement for others to thrive in their entrepreneurial endeavors. Whether through her written words, her YouTube series, or her hands-on approach at Ontario Business Central Inc., Laura is dedicated to uplifting and assisting new and established business owners alike.

You can find Laura on Linkedin and Twitter and Youtube.

https://twitter.com/ONTBUSCEN
https://www.linkedin.com/in/laura-harvey-362b2740/
Taking The Leap YouTube Series