Bc Incorporation Agreement Sample
A foundation contract is an important document when a company takes integration action. It is also known as a pre-foundation agreement and will help to avoid misunderstandings about the roles and responsibilities of the main parties of a registered entity. Our British Columbia Incorporation agreements include: There is no obligation to use a lawyer. The prescribed forms are available on the B.C. government`s websites. Creating a basic business can be a relatively simple process, and with a little care, most people should be able to integrate their own business. However, it is recommended that you be aware of the provisions of the Business Corporations Act if you intend to make your own creation. The first step in the process is to decide if you have a name for the company or if you use a “numbered company.” The company does not need to have a name. You can join a company with a number.
z.B. “123456 B.C. Ltd.” To do this, you put the initiation request described below and leave a space in which the name must be located. The Registrar assigns the company the following serial number as part of its name. A company created in this way is a “numbered company.” In order to integrate a new business in British Columbia, the British Columbia Business Corporations Act provides that one or more individuals can form a business by entering into a incorporation contract, establishing articles for the company that establish their rules of conduct, and filing a business application with the business registry. Foundation Contract This is a necessary agreement between each of the company`s incorporaters. It must indicate the number and type of actions each owner is willing to take, must contain the full name of each incorporater and be signed by each owner on the date signed by each incorporater. The agreement is not subject to the Registrar of Companies. It is kept when the company`s other official records are registered. It contains information such as the name of the company created, its purpose, the names of directors and executives at the time of the creation of the company, the distribution of shares and even the salaries of directors and executives.
With this document, you can certainly make agreements and make important decisions before you start your business as a business. The constitution agreement is reached before the directors submit formal statutes to the B.C. Office of the Corporate Registry. Directors, also known as the company`s promoters, may be held personally liable for any breach of the agreement if the company is not actually incorporated. Therefore, all parties to the agreement should insist that the document confirm that the company has not yet been created. This language ensures that they avoid personal liability. The use of a lawyer can be of considerable use. There are a number of tax considerations that need to be taken into account.
You may also need to add specific rights and restrictions to the shares in order to establish commercial and financial relationships between shareholders. In order to obtain the tax advantages available to a capital company, such as increasing capital exemptions when selling shares of the company, it is necessary to grant a high degree of diligence in order to ensure the proper creation of the company. If you intend to transfer an existing business to your new company, it is necessary to create shares with special rights and specific restrictions in order to use the tax-free provisions of the Income Tax Act. This is a complex and difficult area that should not be taken lightly. The decision to incorporate it is not a decision that should be taken lightly or on a whim.