Company registration on Prince Edward Island

Registration of a company on Prince Edward Island

Canada is a huge country in North America. By its size the state is the second largest in the world (10 million km²).

Official currency is the Canadian dollar.

Entrepreneurs are showing increasing interest in doing business in Canada. Incorporation of a company on Prince Edward Island and in other jurisdictions is a popular service because in the country:

1. There is an opportunity to use a company as a nominee one or a holding company.
2. There is no currency control.
3. It is allowed to open an account with Canadian banks.
4. There is an opportunity to obtain a residence permit.

ORGANIZATIONAL AND LEGAL FORMS

You can register a company on Prince Edward Island as:

• Sole Proprietorship;
• Partnership;
• Branch Office;
• Corporation;
• Trust;
• Limited Liability Partnership;
• Cooperative;
• Extra-Provincial Corporation.

LEGISLATIVE FRAMEWORK

Registration of a company on Prince Edward Island and its further activities are governed by the following laws/acts:

• "On commercial legal entities";
• "On liquidation of legal entities";
• "On Credit Associations";
• "On trusts and credit companies".

Offshore on Prince Edward Island: features

It is not allowed to use the name of a company that is identical or similar to an existing one (registered). Options that are capable of misleading about the scope of activities of a company or demonstrate a connection with the royal family are also not allowed for being used. In addition, you can not use the name to demonstrate your involvement in global brands.

Offshore zones of Prince Edward Island allow companies to start operations with at least one director.

In the province, there are no requirements for:

• residency of directors;
• residency of shareholders;
• citizenship of a secretary;
• minimum authorized capital.

Individuals and legal entities can become directors and shareholders of a company.

All information about shareholders is kept in the office.

It is not necessary to identify the real owner in government bodies, establishing an offshore company on Prince Edward Island.

It is allowed to issue preferred (including cumulative preferred) shares.

You can use a nominee service. When using nominee directors and shareholders, it is impossible to establish the beneficial owner of a company.

Obligatory condition is keeping an accounting.

TAXATION

Payment of taxes is carried out under a two-tier system. Small companies are allowed to prepare tax reports once a year. The report is sent to the tax authorities of the jurisdiction.

Taxes are paid only with regard to the net profit of a registered business on Prince Edward Island and include:

1. Income taxes:

• federal;
• municipal.

2. VAT.

ACCOUNTING

Calculation of the fiscal year begins with incorporation of a company. Submission of an annual report should be carried out within 6 months from the end of a financial contract. In this case, registration of an offshore company on Prince Edward Island allows you to choose the reporting model:

1. Documentary (income and expenses on concluded contracts are indicated, regardless of the fact of payment).
2. Actually (real payments are the basis for paying taxes, this form is convenient for small business owners and freelancers).

It is possible to avoid an audit, having a relevant application timely issued.

Even companies that do not have sources of income in Canada are obliged to provide the report.

If statutory fund of a company does not exceed 5 million CAD, audit of accounting is not necessary.

REGISTER A COMPANY ON Prince Edward Island with LAW&TRUST INTERNATIONAL

Availability of your own business in Canada can be a good start to your international business. We will help quickly register a company for you in any province of Canada. Registration of companies abroad is one of the main directions of our work.