How to set up a business in Quebec

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Updated 2024-03-20 07:14

Are you an entrepreneur thinking about moving to Quebec? Here are some tips to assist you in launching your business. You'll also learn about organizations that can provide support throughout your journey.

Quebec is renowned for its support of small and medium-sized enterprises. Numerous immigrants choose this region to establish their businesses, bringing with them the expertise they plan to leverage. Others incorporate business setup into their travel and immigration plans.

You can set up in Quebec as an entrepreneur if you already have a certain amount of capital. The amount required varies according to the business immigration program you choose. You can also join forces with an existing company. But above all, you need to be aware of all the issues at stake to make your project a success. To help you prepare your project, the Immigrant Quebec website provides a wealth of information.

Setting up a business in Quebec: what do you need to consider?

To successfully set up your business, you need to learn about the Quebec business environment and prepare a business plan. The first essential step is to conduct a market study! Before taking any steps, you should also check whether the trade you wish to practice in the province is governed by a regulatory body. If it is, you'll have to comply with its requirements. Joining the professional order that governs your profession will speed up your integration into the Quebec job market.

The different legal forms of business in Quebec

To set up a business in Quebec, you need to choose the right legal structure for your project and your needs. You'll need to decide whether you're going to operate as a self-employed individual – a sole proprietorship – or as a general partnership (S.E.N.C.). A sole proprietorship run by an individual is the easy solution preferred by many immigrants. This type of business has no legal existence separate from its owner. It has no legal personality and no separate assets. As the sole owner of your business, you will reap all the profits and suffer all the losses, if any. If you operate under your own name, you won't need to register your business. What's more, as long as you earn less than $30,000 a year, you don't have to register for GST and QST (taxes).

The general partnership, comprising two or more individuals or legal entities, collaborates through a contract specifying each party's contribution of capital and assets. This structure is particularly favored by immigrants who prefer not to operate a business alone or be physically present. In a general partnership, members aim to jointly manage the business, work as a team, and distribute the financial gains and losses among themselves. For instance, it could encompass shared professional offices like those of lawyers, notaries, and dentists.

A corporation (also known as a company) is a separate legal entity. This status is almost taxable when a certain level of income is reached. The company has its own rights and obligations. In La Belle Province, business corporations are governed by the Business Corporations Act.

Additional structures include limited partnerships, joint ventures, and cooperatives, although these are less commonly chosen by newcomers. A limited partnership consists of one or more general partners and one or more limited partners who contribute to the common fund of the company. Established through a partnership agreement, it must be named in a way that is common to all partners. General partners have the exclusive authority to manage and represent the partnership, making them collectively and individually responsible for the partnership's debts.

On the other hand, a joint venture lacks legal entity status and has no distinct legal personality. The partners act in their individual names on behalf of the entire venture.

Good to know:

Any unregistered Quebec limited or general partnership is considered an undeclared partnership.

Finally, a cooperative is a legal entity that brings together other people with common economic, social, or cultural needs. They join together to operate a business in accordance with the rules of cooperative action.

To find out about all the other legal forms of enterprise, consult this official page of the Quebec government.

Good to know:

The Self-Employment Support program assists and mentors eligible individuals in setting up a business. If you are selected, you will be entitled to technical advice and financial support. In particular, we'll help you write your business plan and get your business up and running.

The steps involved in starting a business in Québec

To start up your business in Quebec, you'll need to complete a number of steps with the provincial government:

You must register your company with the Registraire des entreprises;
You must register your company with Revenu Québec;
You must obtain your clicSÉQUR - Entreprises permanent authenticator;
You must obtain the permits and licenses required by your company's sector of activity;
You must register your company with the Commission des normes, de l'équité, de la santé et de la sécurité du travail if you plan to hire employees in the coming year.

Once you've created your business, you need to decide whether you want to incorporate it under federal or provincial jurisdiction. You can consult this page to find the jurisdiction that best suits your business and your expectations.

Registering a business in Quebec

If you're not self-employed and are running your business under a name other than your own, it's necessary to register your business with the Enterprise Registrar. Upon registration, you'll be assigned a Quebec Enterprise Number (NEQ). This NEQ is used by the company to identify itself to the Registrar and other government agencies. Registration comes with a fee, and there's also an annual registration fee, the amount of which depends on the legal structure of the company and the filing date. To determine the applicable fees for a registration declaration, you can refer to the Registraire des entreprises fees page. Registration is crucial as it consolidates all information related to companies and business individuals in Quebec. This data is vital for citizens, business partners, and government agencies that need to engage with companies.

Every year, all companies registered in the Business Register must file an annual update declaration during the declaration period, even if they have no changes to make to the information already in the register. Entrepreneurs can use the online service Produce an annual update declaration, available in My Office, under Business Management. The current update is used when the annual update declaration has already been filed and other changes occur during the year. You then have 30 days following any changes to file a current update declaration. Once again, you can use the online service Produce a current update declaration, accessible in My Office, under Business Management.

Every year, each company registered on January 1 must pay the annual registration fee. Companies that can file their annual update declaration and their income tax return in a single step must pay this fee when they file their income tax return. Other companies must pay the fees to the Registrar during the period in which they file their annual update declaration. A business that fails to register and is required to do so risks suspension of its right to take legal action. A company that fails to file its declaration of registration is liable to a fine of C$1,000 to C$10,000 in the case of an individual, or C$2,000 to C$20,000 in all other cases. A company that fails to file the other declarations required by law, or that files a false, incomplete or misleading declaration, is liable to a fine of CA$500 to CA$5,000 in the case of an individual. In all other cases, the fine is between CA$1,000 and CA$10,000.

You must find a French version of your company name in accordance with the French language charter and respect the criteria mentioned on this page. For example, the chosen or assumed name must not contain an expression that evokes an immoral, obscene or scandalous idea. Please consult the Registraire des entreprises du Québec website for more information. The business name may refer to a legal entity, a natural person operating a sole proprietorship, a partnership, an association or other grouping. The assumed name is the other name under which a company identifies itself in the province. It is a name used in Quebec to designate a business other than under its constitutive name. You must declare an assumed name in the enterprise register if the company uses it, or is in the process of using it, to identify itself in Quebec in the course of its activities. However, such a name must be removed from the register if its use has ceased.

A company name can contain a generic component, a specific component and a particle component. For example: Quincaillerie (generic) Saint-Jean (specific) Inc. (particle). Anyone can request a business name reservation from the Registraire des entreprises.

Good to know:

The Start a Business tool could make your job easier! It lets you take the necessary steps to fulfill the obligations associated with starting your own business with a number of Quebec government departments and agencies. You'll also be able to keep track of all the steps you've taken in a single place, and find out about the obligations you need to fulfill with ministries and agencies that don't participate in this service.

Business taxation in Quebec

Before launching your business, it's crucial to understand the tax regulations for Goods and Services Tax (GST) and Quebec Sales Tax (QST). These are taxes imposed by the federal and provincial governments on the sale of goods and services. As an entrepreneur, you are required to register if your revenues exceed C$30,000 over a 12-month period. Additionally, it's your responsibility to remit these taxes to the government.