{"id":14406,"date":"2024-07-17T14:24:14","date_gmt":"2024-07-17T14:24:14","guid":{"rendered":"https:\/\/www.ownr.co\/blog\/?p=14406"},"modified":"2024-07-17T14:24:14","modified_gmt":"2024-07-17T14:24:14","slug":"compliance-for-newly-incorporated-company","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/compliance-for-newly-incorporated-company\/","title":{"rendered":"Compliance For Newly Incorporated Company: What To Do Next"},"content":{"rendered":"

So you’ve incorporated your company, but what comes next? One of the most important things you need to be on top of is maintaining its good legal standing. If you’re feeling confused on how, we’ve got you covered. Just follow the steps in this guide and you’ll be well on your way to fulfilling the compliance requirements for your corporation.<\/span><\/p>\n

What is required immediately after incorporation of a company?<\/h2>\n

There are a few items you\u2019ll need to tackle right after you\u2019ve incorporated to avoid being non-compliant with the law. Many of these legal requirements to maintain compliance can be taken care of automatically when you use <\/span>Ownr<\/span><\/a> to incorporate your company.\u00a0<\/span><\/p>\n

Appoint your executive team<\/h2>\n

Every incorporated company in Canada needs an executive team, consisting of the directors and officers of your corporation.\u00a0<\/span><\/p>\n

When you incorporate your business with Ownr, you\u2019ll appoint your executive team before you incorporate, meaning once your transaction is complete, there\u2019s one less thing to worry about\u2014just one of the many ways we help you stay compliant.\u00a0<\/span><\/p><\/blockquote>\n

Here’s what you need to know about filling these roles.<\/span><\/p>\n

Founding directors<\/h3>\n

Also referred to as the<\/span> first directors<\/span><\/a>, your corporation’s founding directors should have been already listed on one of the forms you submitted when you filed for incorporation.<\/span><\/p>\n

The individuals named as first directors in your <\/span>articles of incorporation<\/span><\/a> are required to act as directors starting from the date your certificate of incorporation is issued and ending at the first meeting of shareholders. At this point, their role as<\/span> directors<\/span><\/a> is complete, and the shareholders of the corporation must elect the next directors moving forward. Founding directors can be elected to the board of directors, but this is not a requirement.<\/span><\/p>\n

In your articles of incorporation, you would have specified whether the number of directors on the board is fixed, or whether there is a maximum or minimum number of directors required. If you want to make changes to the requirements for the board of directors, you need to<\/span> file a form<\/span><\/a> and pay a fee to Corporations Canada.<\/span><\/p>\n

Some corporations have only one director, who can also simultaneously be the sole shareholder and officer. However, if it is a<\/span> soliciting corporation<\/span><\/a>, there must be a minimum of three directors, at least two of whom are not officers or employees of the corporation or its affiliates.<\/span><\/p>\n

Officers<\/h3>\n

The<\/span> officers<\/span><\/a> of a corporation are appointed by the board of directors and are responsible for the day-to-day business operations. They can occupy any position decided upon by the board, and the title of officer includes roles such as chairperson of the board, president, vice-president, secretary, treasurer, comptroller, general counsel, general manager, and any other role that performs similar functions.<\/span><\/p>\n

A director or member of the corporation can be appointed to be an officer, but officers can also be individuals who are neither a director nor a member. The same person can hold multiple officer roles at one time.<\/span><\/p>\n

Schedule the first shareholders’ meeting<\/h2>\n

A corporation’s board of directors are required to call the first shareholders’ meeting within 18 months of the date of incorporation. This meeting is usually held after the organizational meeting, so that shareholders can vote on decisions made at the first meeting.<\/span><\/p>\n

At the first shareholders\u2019 meeting, the shareholders will elect the directors of the corporation. If the new directors are different from the first directors, Corporations Canada must be notified within 15 days of the change being made. This is a requirement whenever new directors are elected or a current director is removed from the board. Similarly, whenever the address of a director changes, the director must inform the corporation within 15 days of the change, and the corporation must then inform Corporations Canada within 15 days.<\/span><\/p>\n

As well as electing the directors, the first shareholders’ meeting may be used to accept, modify, or reject the by-laws set out by the directors, and to appoint an auditor.<\/span><\/p>\n

Call your first organizational meeting<\/h2>\n

Soon after your certificate of incorporation is issued, you should call your company’s first<\/span> organizational meeting<\/span><\/a>. You need to provide notice to each of your first directors indicating the date, time, and location at least five days prior to the meeting.<\/span><\/p>\n

While there are no specific tasks that are required to take place at this meeting, here are some of the topics you should cover:<\/span><\/p>\n