You’ve officially incorporated! What an exciting leap toward growing your business. But incorporation is just the beginning. Many entrepreneurs assume the paperwork ends once the company is formed, only to discover that ongoing legal and administrative procedures are crucial to staying compliant.
Here, we’ll guide you through what to do after incorporating, the common challenges entrepreneurs encounter, and how Ownr helps streamline the process so you can focus on building your business.
Steps to Take After Incorporation of a Company
Once your company is incorporated, there are several important next steps to take to make your business fully operational. These tasks help formalize your structure, ensure compliance, and prepare you for day-to-day activities. Some actions involve registering with authorities, filing documents, and setting up records that demonstrate your company is ready to operate legally in Canada.
For more detailed guidance, see Next Steps After Incorporation. But quickly, here are the key steps to take after incorporation:
1. Open a Business Bank Account
First, you’ll want to set up your business bank account. Once you’ve incorporated your business, you’ve created a new ‘person’ at law. This means that it needs its own bank account in its own name. You will not get the benefits of incorporating if you do not separate your personal funds from your business funds.
2. Pay for Your Shares
Once the bank account is setup, each shareholder needs to pay for their shares by depositing money into the business bank account. For a new corporation, the shareholders usually pay a nominal amount listed in the Minute Book documents.
3. Appoint Directors and Officers
After incorporation, every company requires the appointment of directors and officers. Directors provide governance and strategic oversight, while officers such as the president, secretary, or treasurer manage daily operations.
These appointments must be documented in your corporate records and, in many cases, reported to government registries. For example, under the Canada Business Corporations Act (CBCA), corporations must submit annual reports that include updated director information.
4. Consider Registering for Your GST/HST Number
The last bit of housekeeping to get your company on the right path is to determine whether you will register for a GST/HST number. If you anticipate earning more than $30,000 in annual gross revenue, you are required to register for a GST/HST Number and charge sales tax to your customers.
While it is not legally required, it often makes sense to register for a GST/HST Number early, rather than waiting to hit the $30,000 threshold. This way, you will be accumulating tax credits for any business expenses you incur, and you may be entitled to a tax refund.
5. Apply for Necessary Permits and Licenses
Incorporation does not automatically grant you the right to operate in every industry. Depending on your business type and location, you may require acquiring licenses or permits at the municipal, provincial, or federal level. A restaurant may need a health inspection certificate, while a construction company might require zoning or building permits.
Always check local business registration portals to confirm which licenses apply to your company before you begin operations.
6. Develop Corporate Bylaws and Internal Policies
Bylaws act as your company’s internal rulebook. They include drafting articles of association, setting rules for board meetings, decision-making, officer duties, shareholder rights, and dispute resolution. Even small corporations benefit from having bylaws in place from the outset.
In addition, good governance involves creating internal policies around topics such as confidentiality, record-keeping, and financial reporting to ensure compliance with legal requirements.
Ongoing Corporate Maintenance
After incorporating, your business has an obligation to maintain certain documents and records. In exchange for the legal and tax benefits of incorporating, you are expected to keep your corporation up-to-date and in compliance with the law. The following are three items that every company is legally required to keep up-to-date:
- Minute Book and Share Records: You are required to keep your company documents in an organized manner. This can be in an old-fashioned paper binder, or, like we do with Ownr, through a secure electronic minute book.
- Company Updates: Anytime your company details change (like when you want to add a new director or change your address), you have an obligation to file forms with the government and prepare corporate resolutions which officially approve the company changes.
- Annual Return and Resolutions: Each year, your company will need to file an annual return with the government and pay the associated fees.
You’ll also need to prepare annual shareholder and director resolutions. These are all mandatory documents in order for your business to stay compliant. If you fail to file the annual return, the government can dissolve your company.
Common Challenges After Incorporating a Business in Canada
While incorporation resolves many legal and liability issues, it also creates new operational responsibilities. Recognizing these challenges early can help you stay compliant, organized, and focused on growth.
Here are some of the most common hurdles Canadian entrepreneurs face after incorporating and how to prepare for them.
- Ongoing Compliance Requirements
A corporation is subject to compliance with legal requirements under federal or provincial law. This means keeping corporate records up to date, filing annual returns, and notifying authorities when directors or officers change.
You’ll also need to prepare annual shareholder and director resolutions, which may include a dividend resolution if profits are being distributed. Missing these obligations can result in fines, administrative penalties, or even the dissolution of your corporation.
- Managing Finances and Accounting
After incorporating, your business must separate personal and company finances. This typically involves establishing a bank account, setting up proper bookkeeping systems, and ensuring the preparation of financial statements each year.
Corporations also need to register with the Canada Revenue Agency (CRA), which includes obtaining a tax identification number for tax purposes. Many owners turn to accountants or financial software to simplify these added responsibilities.
- Navigating Legal and Regulatory Issues
Incorporation also creates ongoing legal obligations. Beyond your initial paperwork, you may need shareholder agreements, contracts with partners, or compliance with industry-specific regulations.
In some cases, corporate governance may require a shareholder meeting or involve notifying stakeholders about major decisions. Legal advice can help you navigate these more complex requirements with confidence.
- Administrative Burden
For many entrepreneurs, incorporation brings an administrative workload they hadn’t expected. Managing filings, annual returns, and record-keeping can feel overwhelming without the right support.
Traditional practices, such as holding a first board meeting, can be time-consuming, but these steps remain valuable for documenting your company’s foundation. Many entrepreneurs now streamline these requirements through automation, delegation, or digital platforms like Ownr.
- Adapting to a New Business Identity
Finally, incorporation requires a mindset shift. Running a corporation is not only about compliance but also about adopting a professional identity. That may mean defining formal roles, developing a brand presence, or even opening a company website to reflect your corporate status. Thinking this way early helps build credibility and sets your company up for growth.
How Ownr Can Help You with the Incorporation Process
With Ownr, you get more than incorporation paperwork. You get a partner that helps you stay compliant long after your business is formed. Here’s how Ownr simplifies post-incorporation tasks:
- Automatically generates bylaws and organizational resolutions.
- Get notified about important deadlines, such as annual returns and director updates.
- File your annual returns directly through the platform.
- Securely store and access all your corporate documents in one place.
Whether it’s separating your finances, drafting internal policies, or keeping track of regulatory filings, Ownr transforms complex legal obligations into clear, automated steps.
Incorporate and stay compliant with Ownr.
Key Takeaways
- After incorporation, businesses must take follow-up actions such as opening a bank account, appointing directors, and creating bylaws to remain compliant.
- Corporations must stay compliant by keeping their records current, filing annual returns, and passing the necessary shareholder and director resolutions.
- New corporations often face challenges like compliance requirements and administrative burdens, but platforms like Ownr simplify these tasks through automation and digital record-keeping.
Frequently Asked Questions
How Long After Incorporation Do I Have to Start Operations?
There’s no legal requirement to start operating immediately after incorporation. However, key steps like opening a business bank account, appointing officers, and applying for any required permits or licenses should be completed as soon as possible to keep your company compliant and ready for business.
Can I Change My Corporate Structure After Incorporation?
Yes. You can amend your articles of incorporation, adjust share classes, or restructure director and officer roles. These changes usually require filings with the government, and it’s often wise to seek legal advice to ensure the process is done correctly.
Should I Hire a Lawyer Immediately After Incorporating?
Not always. Many businesses can begin with digital platforms to handle routine filings and compliance. That said, legal counsel is highly recommended for drafting shareholder agreements, navigating complex compliance issues, or planning future restructuring.
What are the Ongoing Costs After Incorporation?
After incorporation, expect recurring expenses such as annual government filing fees, accounting or bookkeeping services, and occasional legal advice. Many corporations also invest in optional tools for digital recordkeeping, compliance reminders, or secure document storage.
This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.