Yes, unless that corporate and/or business name is already used by a corporation carrying on a similar business in Ontario and using your corporate or business name would be “likely to deceive”. To satisfy this condition, corporations will need to do a name search (called NUANS). If your corporation’s business name is different from your […]
About companyformations
What are some advantages and disadvantages to setting up a new corporation in Ontario versus extra-provincial registration of an existing corporation?
One major advantage of setting up a new corporation in Ontario is that it can help shield other parts of your existing business from claims relating to doing business in Ontario. However, if a corporation only intends to do limited business in Ontario (or intends to complete any business within a few years), then it […]
Will our corporation need to obtain an extra-provincial licence if it is only conducting a single transaction in Ontario?
A single transaction in Ontario may constitute “carrying on business”. If it does, then the non-Ontario corporation involved will need an extra-provincial licence and/or may be required to file information with the Government of Ontario before the transaction begins. If your corporation is considering doing any business in Ontario, then please speak with us before […]
Our corporation wants to start doing business in Ontario. When is extra-provincial registration required?
An active corporation that was incorporated (or continued) under the laws of any jurisdiction outside of Canada must obtain an extra-provincial licence to operate in Ontario. This extra-provincial licence must be obtained before the corporation carries on business in Ontario. “Carrying on business” is defined very broadly to cover most business/commercial activities. It includes, but […]
What is extra-provincial registration in Ontario?
Extra-provincial registration means obtaining a licence from the Government of Ontario and/or filing any other required information, to carry on business in Ontario. All corporations incorporated (or continued) under laws other than an Ontario statute (such as the Ontario Business Corporations Act or “OBCA”) are required to file at least some information with the Government […]
Main rules governing the taxation of Canadian partnerships
Partnership not a person The Act imposes a tax on “persons”. A partnership is not a person, nor is it deemed to be one for purposes of the Act generally. Computation of partnership income The basic regime requires computation of income (or loss) at the partnership level and an allocation of the income (or loss) […]
Canadian Partnerships distinguished from other forms of joint ventures
While the Income Tax Act of Canada provides specific rules governing the manner in which a partnership is taxed, there are no rules that apply specifically to joint ventures. The terms“syndicate” and “association” are also sometimes used to describe a form of a joint venture that is not a partnership. Generally, the CRA’s position (supported […]
Classification of foreign business or investment vehicles as partnerships
The recognition of a business or investment vehicle as a partnership under the laws of a foreign jurisdiction or its classification as a partnership under foreign tax laws does not mean that it will be considered a partnership for purposes of the Act. According to the Canada Revenue Agency (CRA), the status of a foreign […]
What is Recognized as a Partnership for Purposes of the Income Tax Act?
Although the term “domestic partnership” is sometimes used in a tax planning context to describe a partnership constituted under the laws of a Canadian province and the term “foreign partnership” is used to refer to a partnership governed by foreign law, these terms have little relevance for Canadian income tax purposes. The Act does not […]
Limited partner status under the Income Tax Act
The treatment of a particular partner under the Act can vary depending on whether the partner is considered to be a “limited partner” as defined in the Act. Among other things, if a partner is a limited partner, specific at-risk rules apply to restrict the partner’s ability to deduct partnership losses For purposes of the […]
