Legal considerations

The legal form of your business

The legal form you choose will depend on what your business will be doing, the number of people involved, risk management, financial and social objectives, etc.

Each legal form has its advantages and disadvantages. This guide prepared by the Fondation du barreau Québec (in French) will help you understand them.

Other useful links:

• Boussole entrepreneuriale (in French)
• Association du jeune barreau de Montréal – Guide de démarrage de l'entreprise (in French)
• Réseau juridique du Québec – La Création d'entreprise: Avantages et Inconvénients de la société par actions (in French)
• Réseau juridique du Québec - Les avantages de l’incorporation, le choix de la juridiction et les étapes à suivre (in French)

Registering with the Registraire des entreprises

In Québec, businesses must register with the Registraire des entreprises, by filing a declaration of registration when they are created.

The purpose of registration is to collect information on businesses and individuals doing business in the province. This information is essential for individuals, business partners and government agencies that have dealings with these businesses.

When you register your business, the Registraire assigns you a Québec enterprise number (NEQ). You will use this unique number to identify your business when dealing with the Registraire or other government organizations.

When you register your business, you must also declare its legal form.

Tool:

Registraire des entreprises du Québec – Start an enterprise – Register an enterprise

Naming your business

When naming your business, you must comply with the requirements of the Charter of the French language and the Regulation respecting the language of commerce and business.

The business name is used by a company or an individual carrying on business or publicizing its activities, particularly in signage, advertising and communications.

Tool:

Registraire des entreprises du Québec - Les noms d'entreprises au Québec (in French)

Shareolders agreement

A shareholders agreement must be designed to meet the shareholders’ specific needs. Examples or templates of shareholders agreements can never be completely satisfactory, no matter how complete they are. You are best to consult a lawyer or notary to make sure you properly understand the clauses of this kind of agreement.

Tools available:

• Association du jeune barreau de Montréal – Guide de démarrage de l'entreprise (in French)
• Association du jeune barreau de Montréal – Legal consults for businesses