As a business owner in Ontario, you may be considering the legal structure of your company and wondering what options are available. One potential solution is a continuation, which can help you maintain your company’s legal status while changing its jurisdiction.
What is a Continuation?
In simple terms, a continuation is a legal process that allows a corporation to move from one jurisdiction to another without needing to dissolve and re-incorporate. For example, if your company is currently incorporated in Ontario but you want to move to another province or country, a continuation can help you do so without losing the benefits of your existing corporation.
Why Might I Need a Continuation?
There are a number of reasons why a business owner may choose to undergo a continuation process. Some of the most common include:
- Expansion into new markets: If you are planning to expand your business into a new province or country, a continuation can help you do so more easily by allowing you to maintain your existing corporate structure.
- Tax and regulatory benefits: Depending on the jurisdiction you are moving to, a continuation may offer tax and regulatory benefits that are not available in your current location.
- Access to new financing: Moving your company to a new jurisdiction may give you access to new financing options, which can be critical for businesses that are looking to grow.
How Does a Continuation Work?
The process of undergoing a continuation can be complex, and it is important to work with an experienced corporate lawyer who can help guide you through the process. Some of the key steps involved in a continuation may include:
- Conducting due diligence: Before undergoing a continuation, it is important to thoroughly research the jurisdiction you are planning to move to and ensure that it is a good fit for your business.
- Drafting a plan of continuation: This document outlines the steps that will be taken to move your corporation from one jurisdiction to another and must be approved by your board of directors and shareholders.
- Obtaining necessary approvals: Depending on the jurisdiction you are moving to, you may need to obtain various approvals before your continuation can be completed. For example, you may need to obtain approval from the local corporate registry or from any regulatory bodies that oversee your industry.
- Filing documents: Once you have obtained the necessary approvals, you will need to file various documents with the appropriate authorities in both your current and new jurisdictions.
- Completing the process: Once all documents have been filed and approvals obtained, your corporation will be considered “continued” in the new jurisdiction, and you can begin operating your business in the new location.
If you are considering a continuation for your corporation in Ontario, it is important to work with an experienced corporate lawyer who can help guide you through the process and ensure that all necessary steps are taken. At Falcon Law PC, we have extensive experience working with businesses of all sizes and can help you make informed decisions about the future of your company. Contact us at firstname.lastname@example.org or 1-877-892-7778 to learn more.