Individuals who plan to register and incorporate a business in Saskatchewan can essentially choose between four general different business structures before proceeding to registration. Considering these different structures will allow them to decide which is best suited to their business:
- Sole proprietorship: this registered business is owned and run by one person, the owner. It is a simple and flexible form of business.
- Partnership: this business is one owned by more than one individual or corporation. All partners are liable for debts of the partnership.
- Business Corporation: this is a legal entity with a separate legal existence from the directors and shareholders.
- Non-profit Corporation: this corporation is formed to execute activities which are not meant for profit making for the members; e.g. humanitarian organizations.
The Business Corporations Act regulates the registration of corporations in Saskatchewan.
More information about the pros and cons of the business structures named above can be located in our general incorporation article.
Saskatchewan Incorporation Fees
Incorporating a company in Saskatchewan requires the filing of multiple documents as well as the payment of filing fees. The fee schedule provides that the following must be paid:
- Name reservation $51.94 per name
- Incorporation fee $225.75(online registration only)
There may be some additional charges based on the particular filing option selected.
Source:
Saskatchewan Corporate Registry Fees
Let us consider the step-by-step procedure of incorporating a company in Saskatchewan, whether you do it yourself, with an online incorporation service provider or a corporate attorney.
How to Incorporate a Saskatchewan Business Using Online Incorporation Services
Another method to incorporate your business corporation in Saskatchewan is using a service provider or online incorporation services. This method is ideal for individuals who may not be familiar with the provisions of the Business Corporation Act and intend to incorporate without the aid of a corporate lawyer as well. It is relatively cheap when compared to hiring an attorney, but is advised only when the corporation structure is simple.
These service providers typically provide forms on their website which must be filled during the registration process. The forms contain interactive questionnaires about the potential business and the information derived from this process is used to generate forms based on the selected type. Online incorporation services are managed by experienced professionals who review and correct the inputted information to ensure the documents are duly filled. The service providers also offer other services like preparation of minute books, tax account registration, share certificates and resolutions upon request and for an additional fee.
However, persons who intend to use this method must pay the required government fees and then the service providers will electronically transfer the documents to the corporate registry for processing.
Here are two service providers that offer incorporation of a Saskatchewan corporation:
How to Incorporate a Business in Saskatchewan by Yourself
By incorporating your Saskatchewan business corporation by yourself, you can cut costs of using online corporation services or hiring a corporate lawyer. The steps include:
1. Determining your business type
The four options for business registration stated above must be carefully considered because the fees differ for each in the Saskatchewan province. Once the business structure is determined, you can proceed with the registration process.
2. Reserving a name with the corporate registry
A business name in Saskatchewan must be unique; no other business may use an identical name to the one you intend to use. The purpose is to distinguish businesses from one another and also explain, to an extent, the type of business you plan to establish. Where the selected name is available, it will be reserved by the Saskatchewan corporate registry for 90 days automatically.
3. Registering your business
Registration of companies can now be conducted online in Saskatchewan. Although, you may also opt for registry by fax, mail or in person. In any case, it is a requirement to fill out and submit the following forms under the Business Corporations Act:
- Articles of incorporation of the business corporation – this is the primary organizational document.
- Notice of directors – this form must include all the names and addresses of directors of the proposed company.
- Notice of registered office – the form must include the registered office address of the proposed company.
- Request for search and reservation of name – a copy of the search and reservation of name form.
These documents can be submitted on www.isc.ca after signing up. The process is relatively easy.
Sources:
www.isc.ca
Incorporating a Business in Saskatchewan via a Corporate Attorney
Even though a hiring a corporate lawyer may come at a high price, there are many benefits of hiring one for registration of your business in Saskatchewan.
If your potential business has a complex structure, or you aren’t well-versed in the registration procedure of the province, you should consider hiring an experienced lawyer. The attorney will handle your business incorporation paperwork appropriately and also provide relevant legal advice which may include helping you choose between a federal or provincial corporation.
Also, the complex tax considerations which may qualify a corporation for tax reliefs need to be diligently studied and understood. Failure to do so can exempt the corporation from benefiting from tax reliefs such as the capital gains exemptions given to corporations from their sale of shares after registration. Additionally, if you intend to transfer an existing business into the prospective company, the shares with special rights and restrictions must be made to allow the new corporation to profit from the Tax-free rollover provisions.
