Company registration in Nova Scotia

Company registration in Nova Scotia

Registering a company in Canada is a popular service for experienced entrepreneurs and corporations, as well as for small but growing companies.

Almost all types of businesses in Nova Scotia are listed in the Register of Joint Stock Companies in the province.

According to the law, all companies other than New Brunswick corporations and NB partnerships/names of organization registered in New Brunswick, persons and partners using their names without a descriptive element or such word combination as “and Associates”, which activities include agriculture or fishing, should be registered. 

Legislative norms 

Organizational and legal forms to register a company in Nova Scotia:

1. Name of an organization, functioning on behalf of a Limited Company. If LP company prefers to work under a name other than a legal one, it must be registered.
2. Co-operative. It is a business owned and operated by users with a minimum of three founders. It can be commercial/profit one and non-commercial/non-profit one.
3. Extra-Provincial Company is a corporation registered outside the jurisdiction
4. Incorporated Company is a business with one or more shareholders.
5. Partnership is a business organized by one or more persons or corporations. It implies potential liability of each partner for all the debts of an enterprise.
6. Society. It is a non-profit organization, which activities are regulated by the Law "On Societies".
7. Sole Proprietorship. Offshore zones of Nova Scotia are increasingly attracting individual entrepreneurs. SP is a form of business managed by one person, under a name different fr om his/her name or surname. It can also be called “A Partnership of One”. 

The laws governing registration of a company in Nova Scotia:

1. Co-operative Associations Act.
2. Corporations Registration Act.
3. Partnerships and Business Names Registration Act.
4. Societies Act.

There are no requirements for payment of minimum authorized capital.

A company in Canada can documentarily or actually file financial statements. In the first case, income and expenses are indicated, regardless of the fact of making payment under contracts concluded. The second form of submitting the reporting is based on real payments.

Reports are filed even if there are no sources of profit in the country.

TAXATION IN NOVA SCOTIA

Taxation system as of 2019:

1. Income tax: federal - 15%, municipal - 16%.
2. Value Added Tax. Federal Rate is 5%, Nova Scotia VAT rate is 10%.

Companies pay taxes according to a two-tier system, but small firms are allowed to file a report once a year.

Particular advantages of having your company in Canada:

• ability to simplify the process of purchasing goods from the EU;
• non-problematic export to Russia or Ukraine.
• chance to obtain a residence permit.

Small enterprises pay small business tax: 9% - federal rate, 3% rate of Nova Scotia.

Company in Nova Scotia: what is a BN

In order to simplify the interaction of a business with the government, the jurisdiction adopted a Business Number (BN) as an identifier of a company. BN is assigned by the Canada Revenue Agency. 
Nova Scotia BN identifier consists of 15 digits (BN15):

• 9-digit number (BN9) assigned by the CRA;
• 2-character program identifier (for which a business is registered);
• 4-digit serial number of accounting record.

Advantages of having a BN:

1. Fewer numbers/digits/characters to remember.
2. It is not so often necessary to enter basic information about a company.
3. Simplified, more convenient access to public services.

A number is provided after an offshore in Nova Scotia is registered in the provincial registry.

The same number is used for various licensing, permissive and registration programs under other regulatory enactments in accordance with the rules for regulating the filing of electronic applications.

Where to apply to register a company in Nova Scotia

The Government of Nova Scotia provides an opportunity to register a business online (partnership or sole proprietorship), but competent lawyers should be involved in the collection and preparation of documentation. In order to professionally, legally and successfully register an offshore company in Nova Scotia, contact Law&Trust International.