Who can form a corporation?
Anyone can form a corporation but is advisable to use a lawyer. A lawyer can ensure that the company is organized in the manner intended by the shareholder(s). It is also important that the people involved in the corporation clearly understand all the corporate formalities that must be followed in order to obtain the protections a corporation offers. Far too often people will attempt to “pierce the corporate veil” in an attempt to reach the personal assets of a corporation’s shareholders. An attorney can provide the guidelines that must be followed to provide the protection that is needed.
One or more individuals who are 18 years of age or older, is not of unsound mind and who are not a bankrupt may form a corporation under the Canada Business Corporations Act (CBCA). Similarly, one or more companies or “bodies corporate” may incorporate a company. These persons are called incorporators. An incorporator (individual or corporation) may form a corporation whose shareholders, officers and directors are other persons, or may serve as the sole director, officer and shareholder of the company. An incorporator is also responsible for organizational procedures, such as filing the articles of incorporation and designating the first directors.
One or more individuals 18 years of age or older who are of sound mind and not in a state of bankruptcy may form a corporation under the Canada Business Corporations Act (CBCA). Similarly, one or more corporations or bodies corporate may incorporate a business under the CBCA. These individuals and corporations (“persons” in the language of the law) are called incorporators. An incorporator (individual or corporation) may form a corporation whose shareholders, officers and directors are other persons. Alternatively, an incorporator may serve as the sole director, officer and shareholder of the corporation. An incorporator is also responsible for start-up activities such as filing the corporation’s Articles of Incorporation and naming the corporation’s first directors. You can incorporate a business under the laws of only one jurisdiction. You must decide whether to incorporate under federal legislation, the CBCA, or under one of the laws of a province or territory. What you need to do t
