You’ve weighed the advantages of incorporating a business, and decided to move forward. Next you may be wondering who can incorporate a business in BC, and whether you need a corporate lawyer to do so.
Who can incorporate a business in BC?
In BC, there are no restrictions on who can prepare the documents to incorporate a business. You can do it yourself and are not required to hire a lawyer. However, there are three reasons why you may want to hire a lawyer when incorporating a business:
- Reason #1: Other professions are not authorized. In BC, no person other than a practicing lawyer is permitted to engage in the practice of law. The “practice of law” includes preparing articles under BC’s Business Corporations Act, minutes, resolutions, bylaws or other documents relating to the incorporation and registration of a corporation, if performed in the expectation of a fee. So, for example, an accountant who provides incorporation services for a fee is engaging in the unauthorized practice of law and may be subject to reprimand.
- Reason #2: You want the company to be set up properly. There is a lot to consider at the outset of the incorporation process. Decisions made at this early stage can have significant consequences down the road. Mistakes may cost your business time and money. A corporate lawyer can lay the groundwork for long-term business growth and help you avoid pitfalls. An experienced corporate lawyer can help you choose the right share structure, establish comprehensive articles, and draft the incorporation agreement. In addition to the required incorporation documents, your lawyer can advise you on ways to protect yourself and your investment (e.g. a shareholders’ agreement that set out rights, responsibilities, management of the company, and how disputes will be resolved should they arise).
- Reason #3: Incorporating a business is not a “one-time” event. There is more to be done to organize your company after your incorporation application is filed with BC Registries.Post-incorporation requirements include setting up your corporate minute book and preparing director and shareholder resolutions to elect directors, appoint officers, issue shares, and determine the company’s year-end. Beyond these essential steps to organize your company, there are ongoing obligations to maintain it. Your company must file an annual report with BC Registries, hold Annual General Meetings, and maintain its corporate records. A corporate lawyer can handle all of this.
The lawyers at Invicta Law Corporation can provide you with customized legal advice to ensure that your business is protected, properly incorporated, and ready to achieve financial success. Call us today at (604) 674-7104 or contact us by email at [email protected]