Incorporation FAQ - Canada-SK


General
Does LawDepot review my submitted answers for accuracy?

LawDepot will review your submitted answers for accuracy of grammar, spelling, completeness and consistency. LawDepot does not check, for legal completeness or accuracy, or offer legal advice of any nature. If you require legal advice related to incorporation, please consult a local attorney.

How does LawDepot protect privacy and provide leading web security?

LawDepot uses the Secure Socket Layer (SSL) protocol with 128-bit encryption strength to transmit sensitive information. This same technology is used by banks, governments, and reputable online businesses such as eBay and Amazon.com to transmit sensitive information. Once information is in our system, it is accessible to authorized LawDepot personnel only. We strictly enforce our privacy policies with our employees and any breach of this policy will result in termination and possible criminal prosecution. For more information please review: www.lawdepot.com/privacy.php.

Can I make changes to my incorporation once I have ordered?

Once LawDepot reviews your order, it will be submitted for registration within 2 business days. If you need to change your order, please immediately contact LawDepot technical support by telephone, 866.608.1020 (toll-free North America). We will make best efforts to stop your order, but all orders should be considered final.

Back to Incorporation: Alberta, BC, Federal, Ontario, Saskatchewan.
Corporations
What is a corporation?

A corporation is a business entity considered to be distinct from the shareholders who own it. A corporation can borrow money, pay taxes, hire employees, commence or be subject to a lawsuit, and own property. The shareholders may participate in the corporate profits through the payment of dividends.

What are the advantages and disadvantages of a corporation when compared to other business entities?

The biggest advantage of incorporation is limited liability for shareholders. Under law, a corporation is considered to be a legal person that is distinct from the shareholders who own it. This means that individual shareholders are not personally liable for the debts and obligations of the corporation. If a corporation fails, the shareholders will lose the amount of equity invested with their shares. One disadvantage of a corporation is that income is taxed at two levels: first on income for the corporate entity, and then at the shareholder level where shareholders are taxed on any dividends they have received.

Can I use LawDepot’s Incorporation Package to start a non-profit society or charity?

LawDepot’s Incorporation Package is currently restricted to for-profit businesses seeking to incorporate with the Government of Saskatchewan.

Contact Person
Who is the contact person?

The contact person is the person who authorizes registration of this corporation. The contact person may be contacted by LawDepot staff, Registry Agents, or the Saskatchewan Government if additional details are required regarding this incorporation.

Corporate Name
What is a Numbered Corporation?

A Numbered Corporation is a corporation that has been assigned a number as a corporate name. The name of a Numbered Corporation will consist of three parts:

  1. An assigned number, i.e. 1111111.
  2. The word “Saskatchewan”.
  3. Your choice of suffix (Limited, Limitee, Incorporated, Incorporee, Corporation, Ltd., Inc. or Corp.) i.e. Ltd.

In the above example, the name of the Numbered Corporation is 1111111 Saskatchewan Ltd.

What is a Named Corporation?

A Named Corporation is a corporation that has had a name selected for it by its incorporator(s) and/or director(s). The name should ideally consist of three parts:

  1. A distinctive element, i.e. XYZ.
  2. A term that describes the business dealings of the corporation, i.e. Distribution.
  3. Your choice of suffix (Limited, Incorporated, Corporation, Ltd., Inc. or Corp.), i.e. Ltd.

In the above example, the corporation’s name would be XYZ Distribution Ltd. Each corporation must have a unique name. Before a selected corporate name can be registered, a Saskatchewan Mandatory Name search must be filed to ensure that the name is unique. Generally, no corporation may have a name that:

  • is too general
  • is only descriptive, in any language, of the quality, function or other characteristics of the goods or services in which the Corporation deals or intends to deal
  • is primarily or only the name or surname of an individual who is living or has died in the last 30 years
  • consists primarily or only of a geographic name
Back to Incorporation: Alberta, BC, Federal, Ontario, Saskatchewan.
What difference must exist for a name to be unique?

A Corporation name is not unique if it is different merely due to:

  • the addition or deletion of punctuation marks or spaces,
  • the insertion or removal of a year in the name,
  • the addition or deletion of the word “company” or its abbreviation,
  • the substitution of a word for its abbreviation or an abbreviation for the word,
  • the substitution of a word for its homonym,
  • the addition or deletion of an article, or
  • any other change that does not produce a phonetic difference between the name and the name of the corporate person or dissolved body corporate.
What is a Professional Corporation?

A Professional Corporation is another type of Named Corporation, where the corporation is specifically formed for one of the following types of professions: medicine, optometry, dentistry, law, chiropractic, or accounting.

A Professional Corporation’s name should have the name of the practitioner, followed by the term ‘Professional Corporation’, i.e. Sam Jones Professional Corporation. Alternatively, you can add a professional descriptor (such as Legal, Law, Medical, Dental) between "Professional" and "Corporation", i.e. Sam Jones Professional Law Corporation.

Please note that LawDepot does NOT currently incorporate professional corporations.

What must I avoid when naming my corporation?

In Saskatchewan, a Named Corporation cannot contain the following prohibited elements:

  • A word or expression in any language that is obscene or implies that a business is obscene, immoral, illegal, or otherwise objectionable, i.e. Cocaine Distribution Inc.
  • A word or number that implies that a Named Corporation is a Numbered Corporation, i.e. 1111111 Saskatchewan Ltd.
  • A word or expression that implies that the corporation is not a corporation.
  • Elements that imply the corporation is under royal or governmental patronage,
  • Elements that imply that the corporation is affiliated with the Government of Canada or the government of a province or territory when it is not, i.e. Government of Saskatchewan Development Ltd.
  • Elements that imply that the corporation is sponsored or controlled by a university, college, technical institute or professional or occupational association
  • Elements that suggest it is a bank, loan corporation, insurance corporation, trust corporation, financial intermediary, stock exchange or other financial institution regulated by provincial or federal legislation.
  • Primarily a combination of punctuation or other marks.
  • A year.
What happens if the name I choose is already registered?

If the name you choose is already registered, your proposed name will be rejected. In this case, LawDepot will ask you to either choose a new name for your Named Corporation, select to have a Numbered Corporation, or cancel your incorporation filing with LawDepot. You will not be charged to have your corporation filed until it has passed the Saskatchewan Mandatory Name Search and you have given your approval. However, the Saskatchewan Mandatory Name Search fee is non-refundable and you will be subject to a new fee for every name search you request.

What if the name I choose is similar to another Named Corporation?

If your proposed name is not identical to another Named Corporation, but it is so similar that it could cause confusion, it will most likely be rejected. For example, if Light Speed Printing Ltd. already exists, Lightening Speed Printing Limited and Lite Speed Printing Ltd. may be rejected for being too similar.

Back to Incorporation: Alberta, BC, Federal, Ontario, Saskatchewan.
Is a Corporate Name the same as a Trademark?

No – a corporate name is not a trademark. A trademark is a distinctive sign, design or logo that distinguishes goods, wares, and services from that of competitors. While a corporate name may become a trademark through application or use, its registration alone does not establish a trademark.

Is my Corporate Name registered throughout the world or just Saskatchewan?

Your Corporate Name will only be registered with the Government of Saskatchewan.

Why would I choose a Numbered Corporation instead of a Named Corporation?

You might choose a Numbered Corporation instead of a Named Corporation if:

  1. A Named Corporation is not important for marketing your products or services.
  2. You use or plan to use a trade name that is different from your corporate name.
  3. You do not wish to conduct a Saskatchewan Mandatory Name Search.
  4. You plan on choosing a name for your corporation at a future time.
Can I change a Numbered Corporation to a Named Corporation at a later time?

Yes. You can change a Numbered Corporation to a Named Corporation at a future time. Please be aware however, that LawDepot does not currently offer this service.

Corporate Addresses
What is a registered office?

A corporation’s registered office address is the place of business where the corporation is located and which is ordinarily available to the public.

What is a records office?

A corporation’s records office, if separate from the registered office, is where the corporation’s necessary documents (articles of incorporation and bylaws, with amendments, unanimous shareholder agreement, minutes, copies of financial statements, etc.) are kept.

Back to Incorporation: Alberta, BC, Federal, Ontario, Saskatchewan.
Terminology
What is an Incorporator?

The incorporator is the person or persons who organize the corporation and file the Articles of Incorporation. Once the filing is complete the incorporator's function is complete and afterwards the management of the corporation is performed by the directors, subject to ratification by the shareholders.

What is a Director?

A director is a person who is elected by either the incorporators or the shareholders of a corporation to conduct the affairs of the company.

What is a Shareholder?

A shareholder is a person, business entity or institution that owns at least one share in a corporation. Shareholders are the actual owners of the corporation. As owners, the shareholders have the potential to profit if the corporation is doing well but also the potential to lose their investments if the corporation’s fortunes decline. A shareholder is not personally liable for the debts and obligations of the corporation.

What is an Officer?

An Officer is someone who ordinarily works in the management functions of the corporation. An Officer does not need to be a Shareholder or Director, and is appointed and reports to the Directors of a corporation.

What are common Officer titles?

The following are just some of the titles that are often assigned to Officers in a corporation: President, Vice-President, Treasurer, and Secretary.

What is the incorporation date?

The incorporation date is the date that the contact person authorizes the filing of this Corporation.

What are Articles of Incorporation?

The Articles of Incorporation is a document that is filed by the individuals organizing the corporation. The Articles of Incorporation describe the purpose of the corporation as well as the share structure. The Articles will also list the names of the individuals who are acting as initial directors for the corporation. Any details of share transfer restrictions, and business activities will also be included in the Articles of Incorporation. The actual rules governing the management of the corporation would be contained in a separate document called the Bylaws.

Back to Incorporation: Alberta, BC, Federal, Ontario, Saskatchewan.


 

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