Surrey BC Incorporation Lawyer

Trusted & Effective Legal Advice for Startups, Entrepreneurs, and Small Businesses

Are you planning to start a new business?

According to BC Stats, in 2015 there were over 36,000 businesses incorporated in BC.

At Patrola Law, our experienced startup legal team helps new business owners launch their ventures quickly and strategically position them for long term growth.

We have helped the Surrey community establish many successful business structures locally and abroad. Whether an incorporation is the right business model for you, our team of experts will provide alternative business solutions that fully aligns with your business goals. 

There are major benefits to corporate formation. A startup lawyer can navigate this process with you and have your business set up right the first time.

Have questions?

Skip the reading and schedule a quick call with our startup lawyer now. It's free.

Incorporation

What is a business incorporation?

In short, incorporation is the forming of a new corporation, being a legal entity that is effectively recognized as a person under the law.

The corporation may be a business, a non-profit organization or a government of a new city or town.

What are the benefits of incorporating?

Incorporating a business can have significant benefits:

  • The protection of personal assets from the claims of creditors or lawsuits
  • Enable owners of business to transfer their ownership in a company more easily to others
  • Lower corporate tax rates because corporations are taxed separately from their owners.

What does the incorporation process entail?

Step 1: Choosing a a corporate name

The first step to every corporation is deciding on a corporate name. The name must be distinct and not include a misrepresentation of your business. That name must be approved and reserved by the Corporate Registry.

It is composed of three elements:

  1. A distinctive portion that identifies the particular corporation;
  2. A descriptive portion that identifies the particular activities of the corporation;
  3. And a legal element, identifying the company as a corporation, such as Limited, Incorporated, or Corporation.

You must have a name search done once you’ve submitted a Name Approval Request or Name Reservation Request Form.

Step 2: Preparing the documents

Typically, you will be required to prepare the following documents:

The Memorandum

Sets out the rules for the conduct of the company.

The Articles of Incorporation

The rules and regulations that will govern the conduct of the company members and directors.

The Articles of Incorporation application will include the following information:

  • Corporate name
  • Completing party
  • Share structure - Need to decide on who the shareholders will be
  • Registered and record office
  • Information of directors.

The Notice of Offices

States the location of the two required offices for your corporation, the registered office, and the records office.

Step 3: Filing the incorporation application

Once Patrola Law has received all the information mentioned above, we can incorporate the company by E-filing the Incorporation Application.

After this step has been completed, the post incorporation documents will be prepared for your signature, to add to the Corporate Minute Book.

Ready to Incorporate? 

Schedule a call with our startup lawyer now and we'll help you get your business off the ground fast.

Patrola Law is chosen as a top business law firm in 2018 by Three Best Rated and trusted by clients with a 4.9 star rating on Google.

Other Business Solutions

If an incorporation does not fit your business model needs, we can advise on alternative business structures that may fit with your requirements.

The following examines these other entities and the pros and cons of each structure.

Sole Proprietorship

Sole proprietorship means that there will be only one owner of the business.

Advantages

  • check
    Low startup cost - Requires relatively low working capital to start a business compared to other types of business organization.
  • check
    Control - Enables business owners to have a full and more direct control over decision-making process.
  • check
    Tax advantage - If your business isn't doing well, you can deduct your losses from personal income
  • check
    Profits - All profits will directly go to business owners.

Disadvantages

  • Unlimited liability - Sole business owner would be responsible for all debts and obligations in connection to the business.
  • Higher taxes - Income would be taxed at their personal rate, which means the tax may be higher if the business is profitable.
  • Limited growth - Difficulty in finding investors and raising capital


Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Advantages

  • check
    Shared management - Each person brings different skills and resources to the business.
  • check
    Easy formation and startup - Easy to establish and startup costs are low
  • check
    Tax advantage - Any losses can be deducted from other sources of personal income, which lowers the overall taxable income and amount of income tax to be paid
  • check
    Shared profits - Equal share in profits and assets

Disadvantages

  • Unlimited liability -  Partners have unlimited liability for the debts of the business (personal assets can be used to pay business debt obligations)
  • Shared liablitity - Each partner is personally responsible for another partner's decisions that may result in financial loss for the business
  • Conflict risk - Possible development of conflict and disagreement between you and your partner(s)
  • Limited growth - Can be difficult in raising significant capital

Joint Venture

A joint venture is a business agreement in which the parties agree to develop new assets by contributing equity for a finite time.

Advantages

  • check
    Resource Access - Business owners are able to get access to new markets and distribution networks that are inaccessible without a partner
  • check
    Shared Risk - They can share risks and expenses with other partners.
  • check
    Credibility - They build credibility with a target audience 
  • check
    Flexibility - A joint venture has a limited life span and limits both your commitment and the business' exposure due to specified responsibilities to the project .

Disadvantages

  • Unclear objectives - Objectives of the venture are not 100 percent clear and communicated to all parties involved.
  • Contribution imbalance - There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.
  • Lack of leadership - The partners don't provide sufficient leadership and support in the early stages of the venture
  • Style conflicts - Different cultures and management styles result in poor integration and cooperation among partners

Ready to Incorporate Your Business?