Incorporation in Nova Scotia: Everything You Need to Know

Welcome to the guide on incorporating your business in Nova Scotia. Whether you’re a small business owner ready to take the next step or an entrepreneur looking to establish your startup, this article has got you covered.

Incorporation can be a complex process, but fear not! We’ll break it down for you, providing everything you need to know about incorporating in Nova Scotia. From understanding the benefits and requirements to outlining the legal procedures, we’ll help you navigate through it all.

Nova Scotia offers a business-friendly environment, with a strong economy, supportive government policies, and a thriving entrepreneurial community. Incorporating your business in this vibrant province can open doors to numerous opportunities.

In this guide, we will delve into the step-by-step process of incorporation, highlight the key legal and financial considerations, and shed light on the advantages and disadvantages of incorporating in Nova Scotia. With our insights and practical advice, your journey to becoming a legally recognized business entity will be smoother and more successful.

So, let’s embark on this exciting journey of incorporating in Nova Scotia and take your business to new heights!

Benefits of incorporating a business in Nova Scotia

Incorporating your business in Nova Scotia offers several benefits that can contribute to the growth and success of your venture. First and foremost, incorporating provides limited liability protection, separating your personal assets from your business liabilities. This means that if your business incurs debts or legal issues, your personal assets, such as your home or savings, are protected from being seized to cover these obligations. This protection can provide peace of mind and allow you to take more risks in growing your business.

Additionally, incorporating your business can enhance your credibility and professionalism in the eyes of potential clients, customers, and partners. Being a registered corporation demonstrates that you are committed to your business and have met certain legal requirements. This can help you attract more customers and secure valuable partnerships.

Another advantage of incorporating in Nova Scotia is the potential for tax benefits. Corporations are taxed at a lower rate than individuals, and there are various tax deductions and incentives available to incorporated businesses. This can result in significant savings and allow you to reinvest more money back into your business.

Overall, incorporating your business in Nova Scotia provides limited liability protection, enhances credibility, and offers potential tax benefits. These advantages can help your business thrive and position it for long-term success. **Note – you will have to discuss tax planning and tax advice with your tax accountant. We don’t offer any tax advice.

Different types of business entities in Nova Scotia

Before you begin the incorporation process, it’s important to understand the different types of business entities available in Nova Scotia. The most common types of business entities are sole proprietorships, partnerships, and corporations.

A sole proprietorship is the simplest form of business organization and involves a single individual operating a business. While this structure is easy to set up and maintain, the owner is personally liable for all business debts and obligations.

Partnerships, on the other hand, involve two or more individuals or entities coming together to operate a business. In a general partnership, all partners share equal responsibility for the business’s debts and liabilities. Limited partnerships, on the other hand, have both general partners who are personally liable and limited partners who have limited liability.

Corporations are separate legal entities that exist independently from their owners. They offer the most protection and flexibility for business owners. Corporations can be either for-profit or non-profit, and they are owned by shareholders who elect a board of directors to oversee the company’s operations.

When deciding on the type of business entity for your venture, you must consider factors such as liability protection, tax implications, and your long-term goals. Consulting with a legal professional or business advisor can help you make an informed decision that aligns with your specific needs.

Steps to incorporate a business in Nova Scotia

Now that you have a clear understanding of the benefits and different types of business entities in Nova Scotia, let’s dive into the step-by-step process of incorporating your business.

*Note – we offer comprehensive incorporation services. Our streamlined, efficient process takes the guesswork out of incorporation so you can focus on your business.

Choose a business name: The first step is to select a unique and suitable name for your business. It’s important to ensure that the name is not already in use by another entity in Nova Scotia.

Prepare the required documents: Next, you will need to prepare the necessary documents for incorporation. This includes drafting memorandum and articles of association, which outline the purpose, structure, and regulations of your corporation. You will also need several shareholder and director resolutions, appoint directors, and issue shares, as well as a few other legal documents to round out the corporate records that are required under the NS Companies Act. .

File the documents with the Registry: Once the required documents prepared, they need to be filed with the Government for review and approval.

Receive your Certificate of Incorporation: After successfully filing the documents and paying the fees, a Certificate of Incorporation will be issued by the Registry. This certificate serves as proof that your business has been legally incorporated in Nova Scotia.

Congratulations! Your business has successfully been incorporated in Nova Scotia. However, there are still a few more steps and considerations to ensure you are compliant with all legal and financial requirements.

Corporate Banking

Now that you have a Company (corporation), you can set up a corporate bank account. Its important to understand that when you incorporate, you are creating a new legal entity, which is the same as a new legal person. It is separate from you and separate from any other similar / related business that existed before. Therefore, it must have its own corporate bank account.

When we incorporate for you, we will send you a package that contains all of the documents you will need to open a corporate bank account.

Canada Revenue Agency Accounts

We also send you the CRA Business Number which will be automatically issued when we incorporate. This is essentially the same as your Social Insurance Number (Social Security Number in the US), but this is issued to the newly incorporated Company.

With this number, we will give you all of the info you will need to register for an HST (Harmonized Sales Tax) account and/or a payroll account, with CRA.

Obtaining necessary licenses and permits

In addition to the process of incorporation, you may also need to obtain certain licenses and permits to operate your business in Nova Scotia. The specific licenses and permits required will depend on the nature of your business and the industry in which you operate.

For example, if you are starting a restaurant, you may need to obtain a food service establishment license from the Nova Scotia Department of Agriculture and Fisheries. If you are planning to sell alcohol, you will need to apply for a liquor license from the Nova Scotia government. It’s important to research the specific licensing requirements for your industry to ensure compliance with all regulations.

Obtaining the necessary licenses and permits can be a time-consuming process, so it’s advisable to start early and ensure that all requirements are met before commencing operations.

From the very beginning of our professional relationship, Garnet demonstrated a level of expertise and commitment that immediately put me at ease. His guidance throughout the intricate process of incorporating my business was nothing short of impeccable. What truly sets Garnet apart is his unwavering dedication to his clients. His responses to my inquiries were consistently timely, and his availability ensured that I always felt supported and prioritized.

Garnet has been a real asset to my company. He is a pleasure to work with and more importantly he gets the job done, on time and on budget, so I can focus on growing my business.

I highly recommend Garnet Brooks for company incorporation services. His seamless and efficient process made the incorporation experience effortless. Garnet demonstrates exceptional willingness to assist and promptly answers any questions, making the entire process straightforward and stress-free.

Garnet, and his team made incorporating my small business incredibly simple. I couldn't recommend his service and expertise enough.

When you work with Garnet, you get much more than a lawyer, you get a trusted team member who truly cares about your success day in and day out, and you can count on that year after year.

Garnet has been a key trusted resource for my business. He is a reliable and detail-oriented professional, and his passion to help entrepreneurs shines through in his work.