A named corporation is one that is incorporated under a name, as opposed to a number.
Name Search – In order to incorporate a named corporation, a name search must first be performed to check the availability of that name. In Quebec, a name search is valid for 60 days from the date of the report. For Ontario and federal incorporations, the NUANS® name report is valid for 90 days from the date of the report request.
Choosing a Name – If the name you have selected is confusingly similar to another company’s name or contains words that are not permitted, for example UN or obscene words, then it will be rejected.
Required Elements – The name you choose must have a distinctive element and a legal element. It may also contain a descriptive element but this is not compulsory. Let us look at the name “Atrexelle Hardware Ltd”. “Atrexelle” is the distinctive element. The more distinctive it is, the better your chance of having the name approved. “Hardware” is the descriptive element, which informs people of the nature of your business. “Ltd” is the legal element.
Legal Element – For federal incorporations, you can choose from Incorporated, Corporation, Limited, Inc, Corp or Ltd. For Ontario incorporations you can choose from those for federal incorporations as well as Incorporee, Limitee, Ltee. For Quebec incorporations, you can choose from Compagnie, Corporation, Inc. or Ltee.
Q: What is a numbered corporation?
A numbered corporation is not incorporated with a name but with a number generated by the government.
Trade Name: Following incorporation, a trade name can be registered and the company can carry on business using the trade name instead of the number granted on incorporation. For example, Atrexelle Manufacturing div. of 1234567 Canada Inc. Please note that a trade name cannot be ended with a legal element such as Inc, Corp etc.
Formalities: However, for all legal and government paperwork, the company will be referred to by its number rather than its trade name but the public will know it by the trading name.
Q: What are the advantages and disadvantages of a numbered corporation?
Advantage of a Numbered Corporation – It is usually speedier to process than an incorporation of a named corporation. And you can add a corporate style name or a trade name to a numbered company – often referred to doing business as or trading as. This permits a business owner to have a legal entity and change the name of the business – if needed for marketing purposes or to operate multiple business operations under one legal entity – each with different names or operations – for example 2222222 Ontario Inc. may have a restaurant in one part of town as a fast food drive thru and another style of restaurant as a dine-in operation in another part of town or geographic area all under the direction of the directors of the numbered company.
Disadvantage of a Numbered Corporation – It does not offer the benefit of a descriptive identity for your business.
If not sure it is best to consult with a professional that can provide guidance of the formal organization of a company or companies.
Q: Do I need to hire a lawyer to incorporate?
It Depends – You do not have to hire a lawyer to incorporate a company but it is advisable if you have specific requirements. We recommend that you seek legal advice from a competent lawyer or a person that can provide you with advice or assistance on any matters which you may be unsure of, some people in business, albeit accountants, and other financial advisors may have the necessary knowledge and skill sets to offer advice and assistance that can provide you with the necessary insight required to formally architect a formal organizational structure to your business operations. There are many things to consider so it’s best to get some guidance on these matters for both the legal and the tax issues – in some cases you may have to get assistance from more than one advisor as accountants often are not lawyers and lawyers are often not accountants and jointly they may be able to provide conjoined advice.
Q: What documents are required to incorporate?
One Form – If you incorporate through us you only need to fill in ONE form.
Guided Process – We will guide you through the entire process and guarantee that your experience of incorporating with us will be easy and straightforward.
Submissions – We will prepare and submit all the relevant documents on your behalf and inform you on the progress of your application.