Incorporating your professional practice involves establishing a legal framework in which to practise your profession: a joint-stock company. This framework is governed by the Business Corporations Act. In addition, other rules apply according to your professional order.
The concept of “legal person” is a particularity of this form of business: an entity separate from the owners and managers of the business. This means that a corporation:
- is autonomous and has its own existence
- can sign contracts in its name and own property
- has its own rights and obligations
- can belong to a single shareholder or to many, according to the different professional orders
How will your company function? You have to decide from the outset who the shareholders will be and the type of shares that will be available. This will determine each person’s rights in the company. The shareholders:
- generally control the company
- elect the directors
- vote on important decisions
- share the value of the company
The type of shares determines the rights of the shareholders, according to the different professional orders.
|Voting shares||Non-voting shares|
An experienced advisor can help you make the right decisions according to your situation.