In general, in order to register a company in Canada one must meet the key registration requirements that may apply to his or her business. This should be done due to the necessity to let the government know about one's plans to establish a business as well as to inform potential customers about one's business status and commercial activities.

Business name registration
Before registering a company it is rather important to think about what one wants to call his or her business. Company's name can be registered through any of the Service Providers under contract with the Ministry of Government and Consumer Services. After choosing the appropriate name entrepreneur(s) must decide on the form of a business he or she wants to start.

Choosing the right business structure
There are plenty of business structure types which can suit one's expectations. For example a partnership or limited partnership, an incorporation, a co-operative, a sole proprietorship etc. If one choses to register a limited partnership (LP) he or she must have a clear perception of what it is and be aware of all of the formalities which shall be fulfilled.

Choosing the form of incorporation
One must also choose whether to incorporate the business federally or in a particular province or territory. However, the main thing one must remember regarding company registration in Canada is that most territorial and provincial governments require business registration with their government departments: the federal Corporations Directorate and the provincial registries.

There are certain rules, procedures and fees for registering a company in each province, however, some of the requirements can be stated as basic and can apply to every place in Canada. For example, business name registration in general is an obligatory legal requirement, however, Newfoundland and Labrador are the exception to this rule as in that province it is not necessary to register the name of partnerships or sole proprietorships.

Requirements to register LP
Limited partnership means that there are one or more general partners, who have unlimited liability and one (or even more) who have limited liability depending upon their contribution to the business in the frames of such partnership.

Submission of documents
Therefore, LP incorporation requires submission of documents such as: Declaration of limited partnership (Form 1), Declaration of extra-provincial limited partnership (Form 4), the Notice of Offices, the Memorandum, the Articles of Incorporation in case one has a limited partnership registered outside of the province. LP can be registered when these declarations are filed under the Limited Partnership Act along with the fee. The Act can be also found online and submitted to Government Department of a certain province.

Legalization of documents
All the documents must be legalized. Legalization of documents in Canada can cost several hundred dollars depending on the chosen consulate. Documents then must be signed and sealed by a Canadian notary and the authentication can be done by using one of the Global Affairs Canada Authentication Services.

LP's shareholders
A minimum one general partner is required for registration of a limited partnership, who may be a resident of any country, individual or legal entity. In such a way LP is managed by its general partners unless the Partnership Agreement allows general partners to appoint a manager. There is no minimum or maximum amount of contribution required to establish such partnership.

Share capital and state fees
For federal incorporation, company incorporation fee is $200 if filed online through Corporations Canada's online Filing Center or $250 if filed through other means. It is a fee for filing the Articles of Incorporation. One more fee included is for getting NUANS Name Search Report to certify that company's corporate name is unique and acceptable. For provincial incorporation, the cost may vary from province to another province. Additional state fees include: filing an annual report, extra-provincial registration, the cost of a corporate seal, or preparing and filing corporate taxes.

Tax number acquisition
Tax-wise, partnerships are treated like sole proprietorships – each partner reports income and pays income tax on his or her personal income tax return. Tax number acquisition requires: social insurance number, a copy of the Canada Revenue Agency's (CRA's) Business and Professional Income Guide, personal business records, including filing in Industry Classification Code for the business or business number, details of partners and other amounts deductible from the share of net partnership income. Depending on business type, businessmen might need to register for GST/HST as well as to register for provincial sales tax (PST).

IBC or International Business Company or as it is also called International Business Corporation is basically an offshore company that is usually incorporated under the laws of some jurisdictions worldwide as a tax neutral company, meaning that it is not subject to tax in the country of incorporation. It is also limited in the direct business activities it may engage in while operating in the context of the jurisdiction in which it is incorporated.

Importance and main functions of IBC
Often IBC features can vary by jurisdiction, but typically include confidentiality of business records, ability to issue shares, provision of a local registered agent or office, and exemption from local corporate income tax as the majority of offshore Jurisdictions that removed or are processing removal exempt IBC from local taxation while reducing corporate income tax to zero to avoid hurting the entire offshore finance industry.

Such companies are generally formed for offshore banking, international investment, asset protection, real estate and intellectual property ownership, and other business activities related to international trade.

A list of jurisdictions offering IBC as a business structure
As stated in Streber Weekly, there are many jurisdictions that offer IBC as a business structure. The list of such jurisdictions is quite long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monsterrat, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list includes most jurisdictions without considering their worldwide reputation. Some popular offshore jurisdictions not mentioned previously offer territorial taxation and other tax incentives in lieu of IBCs. These business structures can operate as Exempt Corporations, Free Zone Corporations, or Non-Resident Corporations, etc. without having the ease of IBC corporations: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.

For example, the jurisdiction of Panama is generally appropriate for International Foundation or IBC in terms of asset protection. The jurisdiction of Hong Kong in general is also convenient for international trade due to the favorable tax system as no withholding tax, capital gains tax, capital gains tax, VAT and other types of taxes are levied.

The most respected jurisdictions for IBCs
The British Virgin Islands (BVI) is recognized as the world's leading offshore business center with more than 450,000 operating companies registered on its territory. He is often referred to as the grandfather of all IBCs. International international business corporations have a fairly good reputation among other jurisdictions of this type due to the ability to transfer domicile and privacy of ownership for assets collected within the corporation. In general, the BVI provide flexible, cost-effective and fast international offshore company formation services.

Seychelles can be alternatives to BVI offshore companies as this jurisdiction also offers ease of administration, simplicity and privacy. Additionally, with more than 175,000 companies registered there, IBC is the most common type of company formed on islands. The IBCs of this jurisdiction are commonly used as consulting and staffing services firms, as well as holding companies for stocks, real estate, and stocks.

The Bahamas is one of the oldest offshore jurisdictions to be considered classic like the previously mentioned BVI as it is independent, politically stable, has an improving reputation and is gambling friendly.

Saint Kitts and Nevis has a good reputation but is also politically stable and has an average to low cost. However, this jurisdiction is more popular for its limited liability companies (LLC).

St. Vincent and the Grenadines has low costs. It is quite stable politically and has a good reputation which has improved in recent years due to increasing popularity due to financial deals conducted by Euro Pacific Bank and Loyal Bank.

The Republic of Panama, or simply Panama, is a country in Central America, bordered by Costa Rica to the west and Colombia to the southeast. Panama City is the country's largest city and capital and is home to two million people, which is approximately 50% of the population. Panama's official language is Spanish due to Spanish rule in this area until 1821.

Panama Canal revenue accounts for a significant portion of Panama's GDP, while industries such as banking, trade and tourism are important and growing sectors. Thanks to the canal, Panama has managed to create the largest international financial center in the Central American region, with assets worth more than three times Panama's GDP. Stability, along with a favorable business and economic climate, is considered the main strength of Panama's financial sector. Panama's banking system conforms to the Basel Principles of Effective Banking Supervision. Nevertheless, Panama has a worldwide reputation as a tax haven. The country has made significant progress in improving compliance with anti-money laundering recommendations, particularly since the publication of the Panama Papers in 2016. In February 2016, Panama was removed from the FATFGAFI gray list, but the IMF continues to see a need to strengthen the country's financial transparency and fiscal structure.

Bank account in Panama
Panama is known for having one of the strictest banking secrecy laws in the world. While foreigners are welcome to open a bank account with Panamanian banks, they often require more documentation than European or North American banks. As such, opening a bank account in Panama can be a relatively lengthy process - unless you have someone to connect you with a bank's account manager, it can take two weeks or even two months to set up a bank account.

Different banks may require different information when opening a bank account, but you should be prepared to provide documents and other information as listed below (all documents must be in Spanish):

Copy of your passport photo, information page and page with a Panama entry stamp;
Up to two bank reference letters;
A letter of reference from a lawyer or accountant;
Copy of another ID – national ID or driver’s license;
bank statement for the last 3 months;
proof of income;
Evidence of your relationship with Panama (e.g. proof of ownership, utility bills, cedula, etc.);
Completed forms with information about you and your family and your funding source.
If you decide to withdraw more than $5,000, you may be asked to indicate how you intend to use those funds.

Procedure for opening a bank account in Panama
In general, account opening procedures may differ slightly from bank to bank, but if you choose to work with a service provider that specializes in opening bank accounts for foreigners, the process might turn out to be quicker and easier for you. Companies offering such services usually have their partner banks and they are familiar with the procedures and legal requirements. The procedure for opening a bank account generally consists of five steps:

Submit an online application;
Submit payment to the bank account opening service provider;
Interview – Banks in Panama require an in-person interview before opening a bank account. The call will be coordinated by your service provider. All applications and required documents are submitted during the interview.
Due diligence process (this takes about 20 to 30 business days);
Setting up the bank account – after completing the account opening process, you will be provided with the bank account number, deposit and transfer history and contact information of your bank.

The financial statement is a report developed and published by management to show the company's performance and financials to creditors, banks, partners and investors. It is one of the basic tasks of the entire financial accounting. From this report, investors and creditors can learn all about the company's profitability and fortunes, and become acquainted with other relevant information that may indicate the company's ability to invest or borrow.

Complexity level of annual financial statement
Preparation of financial statement can be straightforward and easy, but at the same time it can be quite challenging for many inexperienced accountants. The complexity level of preparing the financial statement mostly depends on:

For Trading Companies:

Number of transactions throughout the fiscal period;
Number of suppliers and clients of the company;
Complexity and volume of the accounting documents supporting transactions (i.e., agreements, incoming and outgoing invoices, transportation documents, CMRs, export declarations, etc.);
Number of employees;
Volume of fixed assets, loans, interests, taxes and other factors.
For Holding Companies:

Number of subsidiary companies;
Volume of dividends distributed from the subsidiary companies;
Number of employees;
Volume of fixed assets, loans, interests, taxes and other factors.
Confidus Solutions team of qualified bookkeepers and lawyers will consult you regarding complexity level of your accounting.

Prepare annual financial statements
The preparation of financial statements can be both a simple and a complicated task. It all depends on the size of your business and the number of monthly transactions. There are degrees that require footnote information. On the other hand, there are financial statements that are presented without footnotes.

The explanations can have different purposes. For example, your bank will usually be content to see some basic financial numbers to ensure your business is in a position to pay off debt. The financial statements or report are typically prepared by translating account audit balances into a set of templates appropriate to a particular country's accounting laws.

Specific requirements for annual financial statements in different jurisdictions
Today, most financial statements are prepared in full accordance with generally accepted accounting principles (GAAP). However, you should always consider the specific requirements for the chosen jurisdiction. For example:

The fiscal year. In the vast majority of countries (particularly EU member states) the financial year ends on December 31st. Other jurisdictions may have different approaches as the financial year may end in different periods depending on the company's registration date, e.g. B. (in Singapore, UK, Hong Kong and others);
Deadlines for submitting annual reports. Depending on the jurisdiction, the timeframe for filing the annual report can vary from a few months to a year: 3 months in Bulgaria and Singapore; 4 months in Latvia, up to 12 months in Cyprus or up to 8 months in the UK;
requirements for the exam. Note that some countries require each company to submit an audited report (Cyprus, Singapore, Hong Kong, Ireland). In other countries, companies can produce an audited report voluntarily or if they meet certain criteria (read more about audit).