At Ribbon, our mission is to ease the burden of running a small business in Canada. We understand the challenges entrepreneurs face - from navigating complex regulations to managing finances efficiently. We are certain that entrepreneurs didn't get into business to do paperwork, that's why we're launching Ribbon Basics a solution that consolidates essential back-office functions into one platform.

The Scattered Landscape: Why Do Canadian Entrepreneurs Struggle?​

Entrepreneurs in Canada often find themselves juggling multiple solutions for their business needs. Whether it's consulting with lawyers and accountants, researching accounting software, or figuring out payroll systems, the process can be overwhelming. This fragmentation arises because each solution focuses on a specific aspect of business management, leading to a disjointed experience for entrepreneurs.

For example, payroll solutions cater to both self-employed individuals and larger corporations. While, small business accountants, due to their limited firm size, often cover a broad spectrum of subjects rather than specializing in areas specifically relevant to small businesses.

Introducing Ribbon Basics: A Complete Suite for Canadian Small Businesses​

Ribbon Basics offers a holistic approach to back-office management, tailored specifically for Canadian small businesses. Our package, priced at $2700 per year or $225 per month, includes everything you need to streamline your operations:

• Accountant prepared corporate tax returns
• Basic corporate governance / corporate business registry filings
• Business formation services, if required
• Accounting and payroll software subscriptions
• Management of tax accounts on your behalf
• Expert setup, training, and ongoing support

Who Can Benefit from Ribbon Basics?​

Our solution is designed with Canadian entrepreneurs in mind, particularly those with closely held ownership and 0-4 employees. Whether you're just starting out or looking to optimize your existing operations, Ribbon Basics is here to help.

What's Next for Ribbon Basics?​

As we continue on our journey, we remain committed to enhancing our offering to better serve the needs of small businesses across Canada. From refining our software components to introducing new features, we're dedicated to providing a seamless and efficient experience for our customers. Stay tuned for future updates and developments from Ribbon Basics.

In a recent test, Ribbon sent 190 letters to newly incorporated federal corporations in the Atlantic provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island), revealing a surprisingly high 10.5% return-to-sender rate due to issues with the registered mailing addresses.

The mail was returned for a variety of reasons, including incomplete addresses, invalid addresses, addressee relocations, and post office addresses with missing PO box numbers. The absence of PO box numbers was particularly surprising, considering that federal corporations are not permitted to be registered with PO boxes in Canada.

It is likely that existing corporations would have a higher occurrence of invalid addresses due to neglecting to notify Corporations Canada about the relocation of their corporate headquarters. Updating a corporate headquarters with Corporations Canada is straightforward and involves submitting a form to the Online Filing Centre or using a service like Ribbon.

The consequences of such a high rate of invalid addresses are significant, especially considering that these businesses could be missing crucial documents from government entities like the Canada Revenue Agency (CRA). The potential fallout includes financial penalties and even potential personal liability for the corporation’s directors.

The findings underscore the importance of businesses maintaining accurate and up-to-date addresses. Ribbon offers a competitively priced business address service that allows business owners to establish themselves with a prestigious downtown Toronto business address. All mail is scanned and hosted on an online portal.

This following is an interview with Nikhil from LeapoN.

Q: Nikhil, tell us about your journey with LeapoN.

A: I started LeapoN with a unique vision: to simplify the lives of small and medium-sized entrepreneurs by enhancing their digital presence and providing scheduling, client management, and communication tools in one. My inspiration came from my own experience, witnessing the struggles of professionals with client attraction and operational efficiency. This led to the creation of LeapoN, a technology platform designed to enhance digital presence and streamline operations for financial advisors.

Q: How did you find the transition from India to Canada on a personal level? What made you stay?

A: The transition wasn't easy due to the cultural differences and the challenge of starting from scratch in a new city. It took time to make friends and feel at home. However, Canada's respect for diversity and opportunities for immigrants motivated me to stay.

Q: What surprised you the most about doing business in Canada vs. India?

A: Gaining credibility in a new country is challenging for immigrants. I met an entrepreneur in Ontario who struggled to establish trust in a new country without social connections. It took them 4-5 years to see their business thrive.

Q: What inspired you to focus on the financial industry, and how does it shape your vision for Canadian business?

A: My journey began when I sought guidance from a financial advisor for my personal investments. I realized the industry lacked efficient tools, such as scheduling and communication. My background outside the financial industry inspired me to empower advisors with digital tools, shaping LeapoN's mission to redefine how they operate in the digital age.

Q: Tell us about LeapoN's personalized web presence and communication tool for financial advisors.

A: LeapoN allows financial advisors to create personalized websites and digital visiting cards in just three minutes. This enhances their online presence, increases credibility, and simplifies operations. The platform automatically adds contacts to the advisor's prospect list, streamlining business operations. LeapoN also provides a robust communication tool for personalized engagement with prospects and clients.

Q: Share a success story of LeapoN making an impact on a financial advisor in the Canadian market.

A: An advisor from Manitoba faced challenges in growing their business efficiently. With LeapoN's tools, they established a strong digital presence and improved business operations. Digital methods enhanced client growth, saving 50% of their time on follow-ups and rescheduling. A client testified, "LeapoN took my business to a different dimension, making scheduling and professionalism easy."

Q: What innovations can we expect from LeapoN in the future, and how will the Canadian business environment influence them?

A: We aim to harness emerging technologies, including AI, to offer more efficient solutions for financial advisors while staying compliant with Canadian regulations. These innovations will empower advisors to thrive in the digital age, tailored to meet their specific needs in the Canadian business landscape.

Q: How can financial advisors get started with LeapoN, and are there any unique considerations for the Canadian market?

A: Getting started is easy with a quick sign-up and a one-month free trial. In three minutes, advisors can set up their personalized websites and access our comprehensive toolset. We offer dedicated support and a thriving community, providing financial advisors in Canada the confidence to grow their businesses.

Are you an aspiring entrepreneur in Ontario, Canada, ready to take the plunge into the world of self-employment? It's an exciting journey, but one that comes with a few important administrative steps. One of the key questions you might be asking is whether you need to register your business. The answer? Well, it depends on a few factors.

Do You Need to Register a Sole Proprietorship​

If you plan to operate your business under your legal name (e.g., John Smith), you're in luck – you typically don't need to go through the process of registering your business. Your own name can serve as your business name, and you're good to go.

However, if you have a different business name in mind, often referred to as a "doing business as" (DBA) name, you'll need to register it. This registration typically happens at the provincial level, so make sure to look into the specific requirements with the Ontario government. Registering your DBA name helps you establish your brand identity and ensures that no one else can use the same name in the province.

Do You Need to Register a Corporation​

Choosing to operate as a corporation involves a different set of requirements. You will need to register your corporation. In Canada, you have the option to register it either federally with the Government of Canada or provincially with the Province of Ontario.

Incorporating a business is a bit more complex than running a sole proprietorship, but it offers various benefits, such as limited liability and potential tax advantages. It's an essential step if you plan to grow your business and have shareholders or investors on board.

Additional Considerations​

If your business expands to have employees, physical facilities, or offices in Ontario, there may be additional legal and registration requirements to meet. It's crucial to keep yourself updated with the evolving regulations to ensure you're in compliance. For further reading checkout a Detailed Guide to Registering a Business in Ontario.

Starting a business involves various intricacies, and the specific steps and requirements can change over time. To get the most accurate and up-to-date information, consider consulting with legal professionals or visiting the Ontario government's Business Registry. They can provide you with detailed guidance tailored to your unique business venture. BizPal is a great government resource to get you started.

Conclusion​

In conclusion, the registration requirements for self-employment in Ontario vary depending on your business structure and name. Whether you choose the simplicity of a sole proprietorship or the formality of a corporation, it's important to understand the rules and regulations that apply. Starting a business is an exciting adventure, and with the right knowledge and preparation, you can set yourself up for success in the beautiful province of Ontario. Good luck on your entrepreneurial journey!

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Hello there, fellow entrepreneurs! At Ribbon - Business OS, we're all about making your startup journey smoother and more exciting. We recently embarked on a data-driven adventure to address a common question we've been getting from Canadian entrepreneurs: "What legal ending should I use for my corporation?" Today, we're here to unveil the results of our investigation and add a pinch of fun to this sometimes mind-boggling decision-making process.

Before we begin let's get some context, in Canada, Federal Corporations require a specific legal ending, but it's essential to note that these endings are interchangeable and don't affect the core nature of your business structure, allowing you to choose the one that aligns best with your brand's identity.

For the past two weeks of October 2023, we embarked on a mission to uncover the most popular legal endings for Federal Canadian corporations. Our database was buzzing with 2607 entries, and we're ready to spill the beans.

Inc. - 82.5% (2151)​

It's the undisputed champion of legal endings. "Inc." stands for "Incorporated" and is the go-to choice for over 82% of the corporations we analyzed. If you want to keep it simple and snappy, Inc. is the way to go.

Ltd. - 6.6% (173)​

"Ltd." stands for "Limited." It's a solid choice and offers a touch of sophistication. While not as common as "Inc.," it's still a respectable choice.

Corp. - 3.0% (78)​

"Corp." is the shorter version of "Corporation," and it's the third most popular choice. It's concise and professional, a great option for startups looking for a traditional touch.

Limited - 1.6% (41)​

If you prefer to spell it out, "Limited" is the way to go. It might not be as popular as its abbreviation "Ltd.," but it still gets the job done with a dash of formality.

Corporation - 1.5% (40)​

For those who love to spell it out, "Corporation" is a solid choice. It's not as snappy as "Inc." or "Ltd.," but it conveys professionalism.

Incorporated - 0.7% (18)​

Much like "Corporation," "Incorporated" adds a formal touch to your company's name. It's the more extended version, but it has its charm.

Ltée - 0.04% (1)​

"Ltée" adds a unique flavor to your corporation's name. It reflects a French influence, and while less common, it can be a distinguished choice.

Limitée - 0% (0)​

While "Limitée" is legally valid, it didn't have any takers in our data. It may be less common but can still add a unique touch to your corporation.

Société par actions de régime fédéral, Société commerciale canadienne, S.A.R.F., S.C.C. - 0% (0)​

These lengthy legal endings didn't have any takers in our data. They might be more suitable for very specific cases or industries, but for most startups, they're a mouthful.

So, what's the bottom line here? Well, there's no one-size-fits-all answer to the legal ending question. It largely depends on your brand's personality and the image you want to project. Do you prefer a trendy abbreviation like "Inc." or a more traditional "Limited"? Perhaps you want to showcase a distinct cultural influence with "Ltée." The choice is yours, and it's a chance to infuse some personality into your corporation's name.

Remember, there's no right or wrong answer here. Just pick the legal ending that resonates best with your vision and your target audience. It's your corporation, and the world is your oyster.

Take a look at our articles on how to register a company name in Canada and what to do when your proposed name is rejected!

So, fellow entrepreneurs, go forth, make your choice, and let your startup shine with its distinctive legal ending. Ribbon - Business OS is here to support you every step of the way. Cheers to your corporate journey, and may it be as unique as you are! 🚀✨

When expanding a business across different provinces in Canada, it is crucial to understand the process of extra-provincial registration. This legal requirement ensures that a company operating in a province, while originating from another jurisdiction, complies with the respective provincial regulations. However, it is important to note that the costs associated with extra-provincial registration can vary significantly from province to province. In this blog post, we will delve into the details of extra-provincial registration costs across different Canadian provinces, shedding light on the fees, name search expenses, and annual charges involved.

Extra-Provincial Registration in Canada​

Extra-provincial registration refers to the process of registering a company from one jurisdiction to operate in another province within Canada. This registration becomes necessary when a business entity is "carrying on business" in a province other than its original jurisdiction. In addition to complying with provincial laws, this process ensures that the company can access local benefits and opportunities while operating within the new province.

Fee Variations in Extra-Provincial Registration​

It is essential for businesses planning to expand across provinces to be aware of the varying fees associated with extra-provincial registration. Below, we present a breakdown of the fees, name search expenses, and annual charges for each province in Canada.

Extra-Provincial Registration Fees​

The fees of extra-provincial registration in Canada vary significantly across provinces. Some provinces, such as Alberta and Ontario, offer relatively lower fees with no or minimal fees, while others, like Newfoundland & Labrador and Quebec, have higher upfront and annual charges associated with the process.

Considerations for Federal Jurisdiction Corporations​

In certain cases, federal jurisdiction corporations seeking to register extra-provincially may be exempt from paying the name fee. This exemption can provide some relief to businesses operating under federal jurisdiction, potentially reducing the overall fees of extra-provincial registration.

Additional Expenses​

In some jurisdictions a local address and agent or attorney are required to complete the extra-provincial registration process. These requirements may cause businesses without a physical presence in that jurisdiction to incur additional expenses.

Conclusion​

Expanding a business across provincial borders in Canada requires careful consideration of the extra-provincial registration fees. By understanding the fees, name search expenses, and annual charges associated with different provinces, entrepreneurs can better plan their expansion strategies and allocate resources effectively. It is advisable to consult with legal professionals or incorporation service providers who specialize in extra-provincial registration to ensure compliance with the specific regulations of each province and to navigate the incorporation process smoothly.

Disclaimer​

The information provided in this blog post is based on the available data at the time of writing.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Starting a business in a foreign country can be an exciting and rewarding venture. If you're considering Canada as your entrepreneurial destination, you might be wondering if it's possible for a non-resident to register a business there. The good news is that Canada offers opportunities for non-residents to establish their businesses within its borders. In this blog post, we will explore the options available and guide you through the process of setting up a business in Canada as a non-resident.

Option 1 - Sole Proprietorship​

One option for non-residents to register a business in Canada is through a sole proprietorship. While the rules vary between provinces, it is generally possible for non-residents to establish a sole proprietorship. However, it's important to note that resident Canadians will have an easier time registering, as they already possess a Social Insurance Number (SIN) that identifies them with the Canada Revenue Agency (CRA). Non-residents without a SIN will need to fulfill additional requirements to register as a sole proprietorship.

Option 2 - Corporation​

Another avenue available to non-residents is the incorporation of a business. Certain provinces in Canada, including Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Quebec do not have a resident director requirement. This means that even if you and your team do not live in Canada, you can incorporate your business in these provinces. However, it's worth noting that if you opt for federal incorporation, a 25% resident director requirement exists, making it impossible to incorporate at the federal level as a non-resident. Before incorporating, it's essential to review the specific requirements of each province.

For more information read our Blog Post comparing Sole Proprietorship vs Incorporation.

The Importance of a Business Address​

Regardless of whether you choose a sole proprietorship or a corporation, you will need a business address in the relevant jurisdiction. This address will serve as the official location of your business. Ribbon offers a Mailing Address Service that you can utilize as your business address, simplifying the process of establishing a presence in Canada.

Guiding You Through the Process​

Setting up a business as a non-resident in Canada may seem daunting, but Ribbon is here to help. Our platform guides you through the process of setting up a corporation, providing you with the necessary information and support along the way. Whether you need assistance with understanding the differences between federal and provincial incorporation or obtaining a business address, Ribbon is your go-to resource.

Conclusion​

In conclusion, Canada welcomes non-residents who wish to establish businesses within its borders. Whether you choose to register as a sole proprietorship or incorporate a company, it's essential to familiarize yourself with the specific requirements of the province in which you plan to operate. By leveraging the right resources, such as Ribbon, non-residents can navigate the process smoothly and turn their business aspirations in Canada into a reality. Don't let your non-resident status deter you; seize the opportunity and embark on your entrepreneurial journey in the Great White North.

The advent of remote work has opened up a world of opportunities for freelancers, enabling them to launch North America companies from anywhere in the world. In this blog post, we will explore the benefits and best practices for a freelancer to establish a business presence in North America.

Why Incorporate in North America as a freelancer?​

Incorporating your business in North America, specifically in Canada, offers several advantages for freelancers looking to work with companies in the region. Here are some compelling reasons to consider incorporation

Increased Earning Potential:​

• Being perceived as a local business instead of a remote individual freelancer can increase the amount you can charge for your services.

Credibility and Trust:​

• Incorporating your business enhances your professional image and instills trust among clients. A registered local company is perceived as more reliable and established than an individual freelancer.

Legal Protection:​

• Incorporating provides a legal shield, separating your personal assets from your business liabilities. In case of any legal disputes or financial obligations, your personal assets will generally remain protected.

Access to North American Market:​

• By incorporating in Canada, you gain easier access to the North American market and can position your business as a local entity. This can lead to better client acquisition and business opportunities.

Possible Immigration Benefits:​

• In some cases having a Canadian business can make it easier to immigrate to Canada. For example the Start Up Visa Program requires individuals to have a Canadian incorporate businesses at the time they receive their permanent residency.

Tax Benefits:​

• Canada offers several tax benefits for small businesses, including deductible expenses and tax credits. Incorporating allows you to take advantage of these benefits and optimize your tax planning strategies. Just a note, many of these tax benefits are only for Canadian Controlled Private Corporations (if a Canadian resident owns/controls >50% of the company).

Best Practices for Freelancing in North America​

To succeed as a freelancer working with North American companies, consider the following best practices

Cultivate a Professional Online Presence:​

• Establish a strong online presence through a well-designed website, an updated portfolio, and active engagement on relevant social media platforms. This will boost your credibility and attract potential clients.

Provide Clear Contracts and Agreements:​

• Create detailed contracts or service agreements that clearly outline the scope of work, payment terms, deadlines, and any other relevant terms and conditions. This will help manage expectations and protect both parties involved.

Maintain Professionalism and Timeliness:​

• Deliver your work on time and maintain a high level of professionalism in all interactions. Prompt communication, meeting deadlines, and providing quality work will strengthen your reputation and foster long-term client relationships.

Secure Local Payment Methods:​

• Ensure that you have secure payment methods in place to receive payments from your North American clients. Consider using platforms like PayPal, Stripe, Wise or other reliable payment gateways to facilitate smooth financial transactions. Take a look at our Blog Post on getting a business bank account as a non-resident.

Seek Professional Advice:​

• Consult with legal and tax professionals who specialize in international business and freelancing to ensure compliance with local regulations, tax obligations, and any cross-border implications.

Conclusion​

Freelancing for North American companies while working remotely offers an exciting opportunity for global professionals. By incorporating your business in Canada, you can enhance your credibility, access the North American market, benefit from tax advantages and potentially increase your earning potential. With the right approach, dedication, and professionalism, freelancing for North American companies can be a rewarding and lucrative endeavor from anywhere in the world.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

When it comes to incorporating a business in Canada, entrepreneurs have the option to choose between federal and provincial jurisdictions. While both federal and provincial corporations enjoy the ability to sell products and services across Canada and globally, there are trade-offs to consider. Let's explore the key differences between these two options by comparing Federal vs Ontario (Provincial) incorporation:

Name Protection​

Federal incorporation offers a higher level of name protection, ensuring your business name is safeguarded in every Canadian jurisdiction. On the other hand, Ontario incorporation provides name protection within the province of Ontario only. It's important to note that this protection applies to the legal name, and separate trademark filings are required to protect your trade name.

Extra-Provincial Registration Requirements​

Both federal and Ontario corporations must undergo extra-provincial registration in each province or territory where they establish a physical presence. However, there is an exception for Ontario corporations. They are not required to register for extra-provincial registration within their home province, Ontarios.

Resident Director Requirement​

Federal corporations must have a minimum of 25% resident Canadian directors, whereas Ontario does not impose this requirement. This lack of a resident Canadian director requirement makes Ontario incorporation an attractive choice for foreign business owners looking to start a Canadian business. Typically we find that businesses with resident Canadian directors (individuals living in Canada that are Canadian citizens or permanent residents) choose to incorporate federally while businesses without resident Canadian directors, or who might want to live abroad, typically choose to incorporate in Ontario.

Movement of Headquarters​

Another benefit for federal corporations in Canada that enables them to move their headquarters between provinces is the flexibility it offers in terms of jurisdiction. Federal corporations have the advantage of being able to easily transfer their headquarters from one province to another without having to go through a complex process of dissolution and re-incorporation. This flexibility can be particularly advantageous for businesses that anticipate changes in their operational needs or want to take advantage of economic opportunities in different provinces. This means that federal corporations can adapt to changing circumstances with relative ease, making it a versatile choice for businesses seeking to expand or relocate within Canada while maintaining the benefits of federal incorporation.

The Ontario and Federal governments have been doing an impressive job making it straightforward to complete the extra-provincial registration in Ontario as a federal company. This is in contrast to some other provinces where the extra-provincial registration costs can be greater than $500, and may have significant annual fees.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

When starting a business in Canada, one of the crucial decisions entrepreneurs must make is choosing the appropriate legal structure. The two most common options are sole proprietorship and incorporation. Each structure has its own set of advantages and disadvantages that should be carefully considered before making a decision. In this blog post, we will explore the pros and cons of sole proprietorship and incorporation in Canada, helping you make an informed choice for your business.

Sole Proprietorship: Simplicity with Personal Responsibility​

A sole proprietorship is the simplest and most common way to start a business in Canada. As the owner, you have complete control over the business and make all decisions. Let's take a closer look at the pros and cons of this business structure.

Pros of Sole Proprietorship​

Quick and Easy Registration:​

• Registering a sole proprietorship is a straightforward process, requiring minimal paperwork and legal formalities. This simplicity saves both time and money during the initial setup.

Lower Cost:​

• Compared to incorporating a business, the cost of registering a sole proprietorship is significantly lower. This makes it an attractive option for entrepreneurs with limited financial resources.

Direct Profits:​

• As a sole proprietor, you receive all the profits generated by the business. There are no shareholders or partners to share the earnings with, allowing for greater financial rewards.

Independent Decision Making:​

• With sole proprietorship, you have complete autonomy to make decisions that drive your business. There is no need to consult or seek approval from other stakeholders, enabling agility and flexibility in your operations.

Cons of Sole Proprietorship​

Registration Renewal:​

• In Canada, sole proprietors must renew their business registration every five years. This recurring process can be seen as an administrative burden.

Personal Liability:​

• The primary drawback of sole proprietorship is that you, as the owner, have unlimited personal liability. This means your personal assets are at risk if the business incurs debts or legal obligations.

Unprotected Business Name:​

• Unlike incorporated businesses, sole proprietorships do not have exclusive protection for their business names. Other individuals or entities can use a similar name, potentially causing confusion among customers.

Personal Taxation:​

• Sole proprietors are subject to personal taxation, where business income is taxed at the individual's personal tax rate. This can result in higher tax obligations compared to corporate tax rates.

Incorporation: Legal Separation and Expansion Potential​

Incorporation is another common business structure in Canada that offers distinct advantages over sole proprietorship. Let's delve into the benefits and drawbacks of incorporating your business.

Pros of Incorporation​

Limited Liability:​

• One of the most significant advantages of incorporation is the separation of personal and business liabilities. Shareholders' liability is limited to their investment in the corporation, protecting personal assets from business debts and obligations.

Business Name Protection:​

• Upon incorporation, your business name is protected from use by others in the same jurisdiction. This exclusivity helps establish your brand identity and prevents confusion among consumers.

Ownership Transfer and Investment Attraction:​

• Incorporating your business simplifies the process of transferring ownership, making it easier to attract potential investors or shareholders. This can facilitate growth and provide additional capital for expansion.

Potential Tax Benefits:​

• Depending on your business's circumstances, incorporating may offer tax advantages. Corporations may qualify for lower tax rates or take advantage of specific deductions and incentives, potentially reducing their overall tax burden.

Cons of Incorporation​

Annual Filings and Corporate Records:​

• Unlike sole proprietorships, corporations have additional administrative responsibilities. Annual filings and maintenance of corporate records are necessary to ensure compliance with legal and regulatory requirements.

Proof of Residency or Citizenship:​

• When incorporating, you may be required to provide proof of residency or citizenship depending on the jurisdiction in which you choose to incorporate. In Canada federal corporations require 25% resident Canadian directors while many provinces waive this requirement. This requirement aims to ensure that the corporation operates within the legal framework and is subject to the laws of the jurisdiction.

Higher Setup Costs:​

• Setting up a corporation involves more complex legal procedures and paperwork compared to registering a sole proprietorship. As a result, the initial costs of incorporating a business are generally higher. These costs can include legal fees, government filing fees, and the potential assistance of professionals such as lawyers or accountants.

Making the Right Choice for Your Business​

Choosing between sole proprietorship and incorporation is a decision that requires careful consideration of various factors. Sole proprietorship offers simplicity, lower costs, and direct control over the business, but it comes with the drawbacks of personal liability and limited name protection.

On the other hand, incorporation provides limited liability, protected business name, potential tax advantages, and easier ownership transfer. However, it entails more administrative obligations, higher setup costs, and may require proof of residency or citizenship.

Ultimately, the choice depends on your specific business goals, financial situation, and risk tolerance. Consulting with legal and financial professionals can provide valuable guidance in making the right decision for your business. Remember, you can always start as a sole proprietorship and later transition to incorporation as your business grows and the benefits outweigh the associated costs and complexities.

Conclusion​

In conclusion, whether you opt for a sole proprietorship or incorporation, both business structures have their merits and drawbacks. It is essential to weigh the advantages and disadvantages based on your business's unique needs and long-term goals. By making an informed decision, you can set your business on the right path towards success and protect your personal assets and interests in the process.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Managing finances and establishing a bank account is a crucial aspect of running a business, even if you don't reside in the country where your business operates. For entrepreneurs with Canadian businesses who are not based in Canada, there are several options available to open a business bank account. In this blog post, we will explore three methods to obtain a business bank account for your Canadian business when you don't live in Canada. Additionally, we will discuss the benefits and drawbacks of each approach, along with a recommendation for expert assistance from Ribbon.

Use a Non-Bank Digital Account​

One of the most convenient and accessible ways to open a business bank account for your Canadian business is through online banking platforms like Wise or Airwallex. These platforms offer easy setup processes that can be completed remotely. They are particularly suitable for businesses that generate revenue from online services such as Shopify, Klarna, Afterpay, eBay, PayPal, and more. While these accounts do not provide chequing services and may not offer credit card options, they are a viable solution for managing finances digitally.

Benefits​

• Quick and straightforward setup process.
• Can be established fully remote.
• Ideal for businesses relying on online revenue streams.

Drawbacks​

• Lack of chequing account services, limiting compatibility with certain financial services.
• Credit card options may not be available.
• Accounts typically lack insurance coverage provided by Canadian banks.

Work with Banks with Branches in Your Home Country and Canada​

Another option for obtaining a business bank account for your Canadian business is to partner with banks that have branches in both your home country and Canada. This approach allows you to open a fully functional Canadian bank account remotely, leveraging the established presence of the bank in your home country.

Benefits​

• Quick and straightforward setup process.
• Remote account setup is possible.
• Enables seamless international banking operations.

Drawbacks​

• Banks may require your business to reach a certain size or meet specific criteria.
• Some banks might have limitations or strict requirements for remote account setup.

Fly to Canada and Open a Bank Account in Person​

The traditional method for non-resident individuals to open a Canadian business bank account involves traveling to Canada and personally visiting a bank branch. Although this option requires more effort and resources, it provides access to the full suite of services offered by Canadian banks, including credit products like credit cards.

Benefits​

• Complete access to Canadian banking services, including credit products.
• Ability to establish a comprehensive Canadian bank account.

Drawbacks​

• Requires physical travel to Canada.
• All shareholders and directors may need to be present to open the account.

Conclusion​

Establishing a business bank account is a critical step in managing your Canadian business's financial affairs, and choosing the right method will ensure smooth financial operations and growth. To help you think through the options, Ribbon offers a free business bank account consultation with every business incorporation where their team will help you understand the available options.

Doing business in Canada requires adhering to various legal requirements, and one important aspect is extra-provincial registration or extra-territorial registration. In this blog post, we will explore the concept of extra-provincial registration, focusing on Ontario as an example. We'll delve into the criteria that determine whether a business needs to register as an extra-provincial corporation.

What is Extra-Provincial Registration?​

In Canada, each province and territory has its own set of rules and regulations governing business activities. When a business operates outside of its home province or territory, it may be required to register as an extra-provincial corporation or an extra-territorial corporation, depending on the jurisdiction. This process ensures that businesses are accountable and comply with the local laws and regulations in the areas where they conduct business.

Extra-Provincial Registration in Ontario​

Ontario, one of Canada's most populous provinces and a hub for economic activity, follows its own guidelines for extra-provincial registration. A business is considered an extra-provincial corporation in Ontario and is required to register if it meets any of the following criteria:

Physical Presence:​

If the business has a resident agent, representative, warehouse, office, or any other place where it carries on its business in Ontario, it must register as an extra-provincial corporation.

Real Property Ownership:​

If the business holds an interest, other than by way of security, in real property situated in Ontario, it is obligated to register.

Business Operations:​

If the business otherwise carries on business in Ontario it must register as an extra-provincial corporation.

Further Clarity on the Definition of an Extra-Provincial Corporation​

However, it is important to note that not all businesses are required to register as extra-provincial corporations. The Extra-Provincial Corporations Act in Ontario provides additional clarity. A business is not considered an extra-provincial corporation based solely on if it:

Takes Orders or Trades Goods:​

If a business only takes orders for or buys or sells goods, wares, and merchandise within Ontario, it is not considered an extra-provincial corporation.

Offers or Sells Services:​

Similarly, if a business exclusively offers or sells services of any type within Ontario but doesn’t have a permanent presence, ex. Sales representatives that travel through the province, sales through online marketing, etc., it is not obligated to register as an extra-provincial corporation. By providing this clarification, Ontario acknowledges that businesses solely engaged in trade or service activities without a physical presence or real property ownership may not require extra-provincial registration. This flexibility ensures that businesses operating within specific parameters are not burdened with additional registration requirements.

Conclusion​

Extra-provincial registration is an essential process for businesses operating in Canada across multiple provinces and territories. In Ontario, businesses meeting specific criteria related to physical presence, real property ownership, or business operations are required to register as extra-provincial corporations. However, clarifications under the Extra-Provincial Corporations Act relieve businesses engaged solely in trade or service activities from this obligation.

Understanding the extra-provincial registration requirements and exemptions is crucial for businesses aiming to expand their operations in Canada.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.