Company registration in New Brunswick

REGISTERING A COMPANY IN NEW BRUNSWICK

Canada borders the United States, and New Brunswick is in close proximity to Toronto, Montreal, Boston and New York. Offshore zones of New Brunswick are interesting for many beginners and experienced entrepreneurs.

Benefits of registering an offshore company in New Brunswick:

1. Low cost of running a company. New Brunswick is considered the most suitable place with regard to the cost of business management in Canada and the United States, according to KPMG research in 2014.
2. Motivated specialists. Average indicator of continuous work experience is 8.9 years. The turnover rate of personnel is one of the lowest in Canada.
3. The infrastructure of world-class communications. New Brunswick has always been the first in the market to provide access to leading connectivity technologies, such as fibre-optic communication, high-speed data, broadband access in rural areas and 4G satellite data offered by several providers.
4. Competitive taxation. You will save more capital by having an offshore company in New Brunswick since the corporate income tax rate is the lowest in Atlantic Canada. The percentage of taxes on production and processing is the second lowest in Canada (12%).
5. The strategy of economic growth. Economic development and economic stability are a priority for the Government of New Brunswick. The government is working to develop the economy of this jurisdiction so that enterprises can increase profits and continue to grow.

ORGANIZATIONAL AND LEGAL FORM FOR REGISTERING A COMPANY IN NEW BRUNSWICK

In New Brunswick, there are four main types of business structuring:

1. Sole Proprietorship.
2. Partnership.
3. Corporation.
4. Co-operative.

First. Sole Proprietorship is the simplest organizational and legal form. All business functions are performed by one person, and this person assumes all risks and liabilities associated with offshore work in New Brunswick.

Second. A partnership is an association of several persons with the purpose of profit making. The laws governing the activities of a company of this type are the Partnership Act and the Limited Partnership Act.

Third. The corporation is a more complex type of business structure and often includes higher legal and accounting fees than in cases of Sole Proprietorship and Partnership.

Each province has own laws for registering offshore, and New Brunswick is no exception, but there is also Federal corporate law, namely the Canada Business Corporations Act.

Types of corporations:

1. A company registered at the federal level.
2. A company registered in the province.
3. A company registered outside the province.

Fourth. Co-operative is an independent legal entity. Its activities are regulated by the Co-operative Associations Act.

COMPANY REGISTRATION IN NEW BRUNSWICK: LICENSING

To start working, companies that operate in certain industries should obtain a license or permit. List of industries:

• real estate;
• insurance;
• collection of payments;
• the fishing industry and sphere of industrial cutting;
• working with securities;
• etc.

More information can be obtained at the website of New Brunswick’s Service when intending to register a company in New Brunswick.

Taxation

Taxation system as of 2019:

1. Income tax: federal - 15%, municipal - 14%.
2. Value Added Tax. Federal Rate is 5%, New-Brunswick 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, 2,5% rate of New-Brunswick.

OFFSHORE IN NEW BRUNSWICK: INSURANCE

Insurance is an important part of any business. If personal responsibility can be born by individuals when dealing with business, it is important to have proper insurance coverage. Enterprises want to protect their assets in the event of a claim to avoid bankruptcy in the event of unforeseen situations. The insurance covers personal liability, as well as the responsibility of a manufacturer, fires, transport fleet, etc., and corporations can even ensure the lives of directors and other employees. It is necessary to develop comprehensive certificates of insurance in accordance with the specific needs of the business. In some industries, civil liability insurance is enshrined in the statute. More information can be found in the Insurance Act (New Brunswick) or by contacting competent Law&Trust International’s specialists who can assist in registering a company in New Brunswick.