If you own a Canadian corporation there are a number of reports you have to file on a regular basis. Failure to file these reports can result in a non-compliant status for your company. If you own a corporation be sure to file:
- Any change of office address. If you move buildings, you are required to report your new address to Corporations Canada so they can communicate with your corporation. Investors and consumers also rely on this address. It doesn’t cost anything to change your business address but it should be done within 15 days of the move.
- An annual return. This isn’t the same as your tax return. An annual return provides information about your company. It should be completed within two months of the corporation’s anniversary and costs between CDA$20 and CDA$40.
- Changes to directors. Changes to directors that must be reported including the election of a new member, removal of a director or a change of residential address. These changes must be reported within 15 days. It is also important to remember that 25 percent of your directors must be residents of Canada.
To see the complete list of obligations that must be reported, visit this page.
For your business needs, contact the Winflow Financial Group or request a free consultation.
A common exit strategy to leaving a small business is simply closing the business down. If you have decided to close your business, there are various bureaucratic measures to take. Some of the things to remember when closing down a business includes:
- Voluntarily dissolve the corporation. This can be done through a resolution passed at shareholder’s meeting or through the personal representatives of the business at that time.
- If it applies, cancelling your business registration, partnership or sole proprietorship can replace dissolving a corporation.
- Close all of your payroll accounts with the Canada Revenue Agency (CRA).
- If you have dissolved your corporation, file a last tax return.
- Close your GST and HST accounts with the CRA.
- Close your PST/QST/RST accounts with the CRA.
Failure to properly shut down or dissolve a business could result in tax complications. Ensuring you have followed all of the above rules is necessary when choosing this exit strategy. T0 learn more about closing down a business, visit this government of Canada page.
If you are interested in selling your business to someone else, read this article on succession planning. To learn more about exit strategies and closing a business, contact the Winflow Financial Group. Our trained consultants can help you through all of the necessary steps involved in closing a business.