Company registration in Newfoundland and Labrador

Company registration in Newfoundland and Labrador 

Canada is officially included in the list of countries with preferential form of taxation, but a company registered in any of the provinces will have advantages similar to business in offshore jurisdictions.

Some of the advantages of establishing a corporation are the following:

1. Flexibility of financing.
2. Limitation of Liability.
3. Possibility of issuing shares to employees without their participation in management.
4. Tax benefits.

Where to register a company in Newfoundland and Labrador

Companies are registered in the province by the Registry of Companies.

It ranks second in the Department of Commercial Registrations. Currently, approximately 50,000 corporations are registered in the Registry, about 26,000 of which are active and operating ones. The Corporations Act requires that all limited liability companies undergo business registration in Newfoundland and Labrador before commencing activities in the province. The Act involves statutory requirements for corporations for filing documents to notify the Registry of changes in the company that passed the registration procedure.

The Registry of companies is also responsible for keeping a register of limited liability companies, condominiums and cooperatives for companies in the province.

This province is a place with a favorable climate for business activity.

You can register a company in Newfoundland and Labrador:

1. At the federal level.
2. On the territory of the province.
3. EPC (company registered outside the province).

EPC will have similar features with an offshore one, because it does not pay tax on profits earned outside the country. There is an opportunity to open a bank account in the financial and credit institution of Canada and manage the activities of companies in other states from the Canadian office.

Requirements for a name 

The Registry of companies checks the availability of a name only in the province of Newfoundland and Labrador. If you are not interested in the offshore zones of Newfoundland and Labrador, and you intend to register a business in another province, you should contact appropriate department in this jurisdiction and request a name search.

Elements of corporate name to be included therein for offshore in Newfoundland and Labrador:

1. Distinctive (in case of the same or similar type of business, it helps to distinguish one name from another).
2. Descriptive (it describes the type of activity, and it can be generalizing).
3. Legal (organizational and legal form). Company name with such ending as Ltd., Corp., Inc., etc. should be indicated in the constituent documents (full form of the term is also allowed).

A Company in Newfoundland and Labrador: taxation as of 2019

Income tax rates for corporations are among the lowest in the country.

The general corporate income tax rate is 15%. Percentage of CIT for small businesses is 3%. CIT is designated by the Federal Government on behalf of the province.

Registration of a company paying CIT in the province of Newfoundland and Labrador entitles to obtain the following tax credits (Tax Credit is an amount deducted from total amount of taxes):

• for contributions for political purposes;
• for scientific research and testing;
• for making of film projects (local ones).

Companies with total capital equal to 10 million dollars are exempted from paying taxes for the first 5 million.

Incorporation of a company in Newfoundland and Labrador involves payment of VAT at the federal rate of 5% and province rate of 10%.

Important information: corporations that fall under the EDGE (Economic Diversification and Growth Enterprises) programme receive "tax holidays" for ten years in terms of contribution of CIT.

The Department of Finance is responsible for the establishment and administration of most provincial taxes.

Registration of a company in Newfoundland and Labrador will be successful with the assistance of competent lawyers of Law&Trust International.

Incorporation of a company in Newfoundland and Labrador involves payment of VAT and capital gains tax.

Important information: corporations that fall under the EDGE (Economic Diversification and Growth Enterprises) programme receive "tax holidays" for ten years in terms of contribution of CIT.

The Department of Finance is responsible for the establishment and administration of most provincial taxes.

Registration of an offshore company in Newfoundland and Labrador will be successful with the assistance of competent lawyers of Law&Trust International.