Please add at least one owner to complete this step.
Frequently Asked Questions
Q: What is a shareholder?
A: A shareholder is an owner of a company. The interest of an owner of a company is represented by the number of "shares" of the company owned by that shareholder. Share certificates are evidence of the owner’s shares in a company.
Q: Do owners need to be residents of Canada?
A: No, however, there are certain laws that companies controlled by non-Canadian residents must comply with. Please email our office at [email protected] for more information.
Q: How many owners does a company need to have?
A: A company may have as many owners as it desires; however, there are additional reporting requirements for companies with more than 50 shareholders. Please email our office at [email protected] for more information.
Q: Can a corporation be an owner?
A: Yes, a corporation may be an owner in another corporation.
Q: Will my company's owners get share certificates?
A: Yes, we will prepare share certificates for the owners of your company.
Q: Do owners need to pay for their shares?
A: Yes, shares cannot be issued unless there is some form of consideration. In most circumstances, upon incorporation shares are issued at a price of $0.01 per share. Shares must not be issued until the company has received payment in full.
Q: What is the share structure of my company?
A: All companies incorporated by Snap Incorporations will have a comprehensive share structure consisting of six (6) classes of shares often recommended by lawyers and accountants.
A summary of the share structure provided by Snap Incorporations is as follows:
Class A Voting Common Shares
Class B Non-Voting Common Shares
Class C Non-Voting Common Shares
Class D Non-Voting Common Shares
Class E Preferred Shares
Class F Preferred Shares
Each of the above listed classes of shares have different rights and restrictions which will provide flexibility for your company's requirements in the future.
If your company requires a specific share structure, please email our office at [email protected] to request a quote for a customized share structure.
Q: What shares are being issued to the owners?
A: All owners will receive their proportionate interest of Class A Voting Common shares. This class of shares will enable the holder to vote on matters requiring owner approval pursuant to the Business Corporations Act in accordance with each owner’s respective shareholdings. In addition, this class of shares will enable the owners to participate in the profits of the company in accordance with their respective shareholdings.
Q: Can I assign different classes of shares to each shareholder?
A: By default, the online Snap Incorporations form only permits the issuance of Class A Voting Common Shares. If you wish to issue separate classes of shares to the owners, please email our office at [email protected] to request a quote for the customization of your application.
Q: What is a Transparency Register or a Register of Individuals with Significant Control?
A: These registers are only required for Federal Corporations and BC Companies.Under the British Columbia Business Corporations Act and the Canada Business Corporation Act, every private company must keep and maintain a Transparency Register (B.C. Only) or a Register Of Individuals With Significant Control (Federal Only) at its records office. These registers are a self-reported record of significant individuals who have a right or ability, directly or indirectly, to affect the control of the company.
Q: What information is recorded on the Transparency Register or the Register of Individuals with Significant Control?
A: The full legal name, date of birth, citizenship and last known address of significant individuals are recorded in the transparency register. The date that the individual first became a significant individual and a description of how the individual is a significant individual is also recorded.
Q: How do I know who the significant individuals are for my company?
A: An individual is a significant individual for your company if:
They, directly or indirectly, own, or indirectly control:
25% or more of the issued shares of the company; or
shares that carry 25% or more of the voting rights of the company; or
they have the right or the ability, or both, directly or indirectly, to elect, appoint or remove a majority of the directors of the company; or
if two or more individuals hold the interests or rights jointly. Such interests and rights may be held among individuals through an agreement or arrangement to exercise rights in concert.
