SETTING UP SHARES IN YOUR CANADIAN COMPANY AS A START-UP BUSINESS
Here are the steps you need to take after incorporating your
company in Canada
Published by Zoom Startups on 12th May,
After receiving a certificate of incorporation for your start-up business, the next step that needs to be taken is to organize the internal workings of the corporation in order to keep the business in good standing with the federal government. A qualified business legal professional can guide throughout the entire process.
The members of the Board of Directors that was listed on the incorporation forms filed with the federal government would be mandated to begin with their first shareholders meeting.
At the first meeting of shareholders, the shareholders would have elected their corporation's directors either from the first directors or from a pool of other individuals.
A start-up business professional can assist with the issuing of shares for a corporation as this should be one of the first activities once shareholders and directors are involved.
A person would become a shareholder when a corporation issues shares in their name. Shares must be issued if under the articles of incorporation of the company, it was indicated that shares would be issued.
The articles of incorporation would also have indicated the classification of shares and the value assigned to each. Directors of the start-up business can decide via a majority vote as to how shares should be issued.
PAYMENTS FOR SHARES
The start-up business should receive full payments for its shares by individuals before their issue or even consider issuing it. This payment is generally monetary in form but can also be done in exchange for services performed or through the transfer of property in the start-up company's name.
A person becomes a shareholder when they are issued shares under a share certificate. This certificate must state the corporation's name as set out in the articles of incorporation, the name of the shareholder and the number and class of shares that are represented.
Articles of incorporation may contain restrictions on share transfers and the share certificate should indicated the restrictions. At Zoom Startups, we can assist with drafting of articles of incorporation, registering a company and its name as well as issuing shares. We assist start-up businesses with the entire start-up process to get your company up and running.
KEEP IN GOOD STANDING
Corporations and start-up businesses should be kept in good standing and can benefit from the help of a qualified start-up business consultant. Keeping in good standing with the federal government means filing annual returns, amending articles when necessary an filing changes regarding the directors of your company.
Contact Zoom Startups today
for more information on registering and starting up your business in Canada.
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