Types of Corporations in Canada | Start a Business in Canada | Business Structures | Enterslice скачать в хорошем качестве

Types of Corporations in Canada | Start a Business in Canada | Business Structures | Enterslice

There are different types of corporations that exist in Canada. This distinction among different types of #CorporationsInCanada is usually done for the tax purposes. The promoter needs to decide the type of corporation at the end of the tax year. Selecting a type of corporation will determine the rate of taxes and deductions that will be applicable to the corporation at the end of the tax year. the 5 types of corporations in Canada for the tax purposes are: • Canadian-controlled private corporation (#CCPC) • Other Private Corporation • Public Corporation • Corporation controlled by a public corporation • Other Corporation Let us discuss about each of these corporations: 1. Canadian- controlled Private Corporation (CCPC): A corporation is considered as a CCPC if it meets the following criteria at the end of the tax year: • The entity was a private corporation • The particular corporation was resident in Canada and the corporation was either incorporated in Canada or resident in Canada from 18th June, 1971 to the end the of the tax year • The corporation was not controlled directly and indirectly by one or more non-resident persons • The entity was not controlled directly or indirectly by one or more than one public corporation (except for a prescribed venture capital corporation as defined in Regulation 6700 of the Income Tax Regulations) • The entity is not controlled by a Canadian resident corporation which lists its shares on a designated stock exchange situated outside Canada • The entity was not controlled directly or indirectly by any combination of persons mentioned in the previous three conditions • If all the shares of the entity is owned by a non-resident person or by a public corporation (except a prescribed VC corporation) or by a corporation with a class of shares listed on a designated stock exchange owned by one person, that person would not own sufficient shares to control the corporation. • No class of capital stock of Corporation’s shares should be listed on a designated stock exchange. 2. Other Private corporation: An entity is considered as Other Private Corporation if it meets the following criteria at the end of the tax year: • The entity is resident in Canada • The entity was not a public corporation • The entity was not controlled by one or more than one public corporations (except for a prescribed VC corporation as defined in Regulation 6700 of the Income Tax Regulations) • The entity was not controlled by one or more than one prescribed federal Crown corporations (as defined under regulation 7100) • The entity is not controlled by any combination of corporations described in the previous two conditions 3. Public Corporation: A corporation is said to be a public corporation if it is resident in Canada and meets either of the following criteria at the end of the tax year: • The entity has a class of shares that are listed on a designated Canadian stock exchange • The entity has either elected or the minister of National Revenue has designated it as a public corporation and the corporation complies with the prescribed conditions mentioned under Reg. 4800(1) of the Income Tax Regulations on the number of its shareholders, the public trading of its shares, the dispersing of the ownership of its shares, and the size of the corporation. If a public corporation has complied with some of the prescribed conditions mentioned under Regulation 4800(2), it can elect, or the minister of National Revenue can designate it not to be a Public Corporation. 4. Corporation controlled by a public corporation: A corporation is said to be a corporation controlled by a public corporation if it is a Canadian subsidiary of the public corporation. Such types of Corporations in Canada do not qualify as a public corporation for the purpose of determining the type of corporation while completing one’s T2 Corporation Income Tax Return. 5. Other corporation: A corporation can be other corporation if the same does not fall within the ambit of the previously mentioned categories. Some of the examples of other corporations include General Insurers and Crown Corporations. Know more visit:https://enterslice.com/learning/types... Want to know more about #Enterslice Share, Support, Subscribe!!! to our YouTube channel: http://bit.do/fqM2B Facebook:   / enterslice   Twitter:   / enterslice   LinkedIn:   / enterslice   Instagram:   / enterslice_official