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NewWorld Immigration has been helping Canadian and foreign national companies register and set up business operations in Canada .
All businesses in Canada , large and small, are subject to certain laws and regulations. These regulations have been designed for the good of the public and the protection of the consumer. Some have been laid down by the municipality, others by the provincial and federal governments, and others by various other regulatory bodies. Each law has been set up to ensure that products and services offered for sale conform to required safety and other standards.
Generally, there are three forms of business organizations: Sole Proprietorship, Partnership, and Corporation. The following list the pros and cons of each form of business organization:
Sole Proprietorship |
Advantages
- Low start-up costs
- Greatest freedom from regulation
- Owner in direct control
- Minimal working capital requirements
- Tax advantage to small owner
- All profits to owner.
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Disadvantages
- Unlimited liability
- Lack of continuity
- Difficult to raise capital
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Partnership |
Advantages
- Ease of formation
- Low start-up costs
- Additional sources of venture capital
- Broader management base
- Limited outside regulation.
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Disadvantages
- Unlimited liability
- Lack of continuity
- Divided authority
- Difficulty in raising additional capital
- Hard to find suitable partners.
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Corporation |
Advantages
- Limited liability
- Specialized management
- Ownership is transferable
- Continuous existence
- Legal entity
- Possible tax advantages
- Easier to raise capital.
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Disadvantages
- Closely regulated
- Most expensive form to organize
- Charter restrictions
- Extensive record keeping necessary
- Tax rules can be more complex.
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It is very important to register under the proper business form to start a business in Canada. It is important to consider your business needs as well as your legal status in Canada.
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