Posted on: 21-02-03 23:51:11
Hi,
I want to start sole proprietorship company. (Software related)
I read on the Govt. website and it says it just cost $60.
Are there any other types to incorporate?
Before I go further, I want to know what are advantages and disadvantages from people who started one?
Thanks
Note: I didn't find forum related to Business, so I posted here.
I think it is "Enterprise Canada" - I have registered my company through them. They have kiosks at Civic Centers using which you can register your business.
I have no much idea regarding others - but to become incorporated is also one option, but you have to maintain books of accounts, have regular returns etc. so there is lot of JAFA.
For me it is simple, I registered the company and got the GST Number. Thats all.
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A Proud Indian Canadian
Quote:
Orginally posted by Garvo Gujarati
I think it is \"Enterprise Canada\" - I have registered my company through them. They have kiosks at Civic Centers using which you can register your business.
I have no much idea regarding others - but to become incorporated is also one option, but you have to maintain books of accounts, have regular returns etc. so there is lot of JAFA.
For me it is simple, I registered the company and got the GST Number. Thats all.
Quote:
Thanks for the reply Garvo.
1. Are you talking about the one which cost $60 to setup?
2. What about tax implications?
3. What if I didn't do any busines this year then what? (as this relates to Software Consulting)
4. What's the use of GST number?
I appreciate your response.
Yes I am talking about the $60 one.
Since I am the only person owning this company, I don't have to return any file for the comapny, but my personal return is enough and that is what I have done last year. (This is as per my accountant, and so far haven't heard anything from government)
If you don't do any business that is should be ok, as you might have done job and you can so your employment income normally.
GST is required when you sell something like your "time". I mean when you are starting a software company you might be doing consultancy and for that you will put an "Invoice". You can also design a software and sell to companies. In both cases since you are selling "services" you have to have a GST number and you have to collect those "15%" tax from your customer.
I think if your annual turnover is less than 30,000 you don't need GST number, but I am not sure about it.
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A Proud Indian Canadian
Quote:
Yes I am talking about the $60 one.
Since I am the only person owning this company, I don't have to return any file for the comapny, but my personal return is enough and that is what I have done last year. (This is as per my accountant, and so far haven't heard anything from government)
Thanks Garvo for your reply. If you don't mind can you clarify me few more doubts.
1. With the $60 registration I won't get the Inc. next to the name Am I right?
Ex : ABC Consulting or ABC Consulting Inc.
2. Is this $60 fee is a yearly fee or one time?
3. Do I need to maintain separate bank account for the company or the current bank account is enough?
4. Say if I open the company now, after six months or so I decided to shelve it. What happens then? Anything I should aware of.
Thanks for your time.
To incorporate (i.e. to get an Inc.) next to your company there's a govt. fee of about $360. There also has to be a NUANS search that has to be performed to see if your company's name has already been used. There's firms who do this for about 110 dollars (i.e. the incorporation and the NUANS search).
You do have to have separate bank account for the company. Ideally, you should also get a separate credit card so that all your charges for the company are on that (which makes it a lot easier to calculate tax deductions later..)
If you do not wish to continue the compnay, you can shelve it. I'm not's sure if there's fees for this, but I don't think so.
My advice to you is to consult an accountant. There's a lot of paperwork when you go INC. and its best to understand all implications before diving in.
Hope that helps.
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Are you there?
And oh yeah, the incorporation fee is one-time (Later on, they keep collecting it yearly in another form, its called TAXES!! 
)
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Are you there?
