If you plan to incorporate your business, you must first familiarize yourself with the legal procedures to follow. All for-profit businesses that decide to incorporate must be sure to follow every step of the process in order to be in compliance. One of the most crucial steps of the incorporation procedure is the initial declaration of a legal person.
Find out why you need to file an initial declaration, how to file one and what deadlines to respect in this article from T2inc. We are committed to guiding you through the process!
What constitutes a legal person?
Before getting into the details of the initial declaration, it’s important to understand what constitutes a legal person for tax purposes.
There are three main legal structures for businesses in Quebec:
- Sole proprietorship
- Partnership
- Corporation
According to Section 2188 of the Civil Code of Québec, a corporation is the only type of for-profit business that is considered a legal entity. As such, it has certain specific characteristics. Since the corporation is its own legal person, shareholders are protected from business risks such as financial or market upheaval.
It might be wise to contact a business tax specialist to find out more about the advantages of this type of company.
Why file an initial declaration of a legal person?
Every corporation that wishes to do business in Quebec must respect the laws of the province and comply with its administrative and fiscal procedures. Therefore, they are all obligated to file an initial declaration of a legal person.
The declaration provides the relevant legal authorities with basic information about the company in question, including:
- Its field of activity
- Names of shareholders
- Names of directors
- Etc.
It is one of the vital steps to take to incorporate a company in Quebec.
How to file an initial declaration of a legal person
Fulfilling this administrative obligation is not complicated. Simply go online and access the government’s declaration service (déclaration initial d’une personne morale, available in French only).
When to file your initial declaration of a legal person
After registering your business, you have 60 days to file your initial declaration with the registration office free of charge. Beyond that, you will be required to pay a late fee, and the company may be subject to administrative penalties. Therefore, it’s important to file before the deadline.
T2inc.ca can help you incorporate your business in Quebec
The initial declaration of a legal person is a key part of incorporating your business in Quebec. It’s vital to file the declaration in a timely manner in order to then submit your certificate of incorporation to the Quebec enterprise register.
T2inc.ca’s tax experts provide simple, fast, personalized and professional services for SMEs in Quebec. After incorporating your business with T2inc.ca, use our online corporate tax services and enjoy peace of mind with your administrative tasks and finances. Contact us today to get started!
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
