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Federally Incorporated

Looking for some information about filing a federally incorporated company. The owner lives in Quebec, but does not have any account setup with Quebec.

I don’t see how I can complete this return without a NEQ or identification number.
Anyone have any suggestions?

Each province and territory has it’s own rules regarding registration requirements for operating a corporation in their province.

For a general understanding please refer to:-

"… 1) Although provincial and federal incorporation is an “either-or” proposition (you don’t need to federally incorporate and provincially incorporate), if you choose federal incorporation, you will need to register your business in any province or territory where you carry on business.

(Note that currently, when you complete the federal incorporation process through Corporate Canada’s Online Filing Centre, you will have the option of filling out extra-provincial registration forms for Saskatchewan, Ontario, Nova Scotia, and Newfoundland and Labrador. You will still have to contact the Provincial Registrar of each province or territory other than these where you plan to do business, and register extra-provincially with them.) …"

How to register a Federal Corporation to operate in Quebec:-

https://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs04578.html
Provincial and territorial legislation requires you to register your corporation in each province and territory in which it will conduct business. If you plan on conducting business in Ontario, Nova Scotia, Saskatchewan, and Newfoundland and Labrador, you can [register your corporation while you incorporate] (https://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs07075.html).

Quebec
http://www.registreentreprises.gouv.qc.ca/en/demarrer/immatriculer/

These are the business operations which must have a Quebec registration to be able to operate in Quebec.

Things that you must consider:-

  • Operating name
  • Legal name
  • Activity in Quebec
  • Business registration requirements in Quebec
  • Defacto operating entity
  • Head quarters address
  • Operations or activity location and address

For example, if you have no legal business registration in Quebec and your place of business or activity takes place in Quebec, then those business activities will likely be deemed as belonging to a proprietorship under an operating as name or your name.

Corporate Tax Returns generally consist of both a Federal and a provincial returns. In Alberta it is an AT-1. If you are running operations in multiple jurisdictions then you will need separate P+L, assets, and balance sheets for each operating jurisdiction. The T2 Return encompasses the total operations. If the provincial or multi-jurisdicational registration dates do no match the Federal registration dates then you will have different start dates but the same end dates. Ie. Register the Federal Co month one. Register the Provincial co in month two. Match year ends between the two or more jurisdictions. Have the start dates of each match the dates of registration or incorporation.

Federal corporations must abide by Federal Year End rules.
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/when-file-your-corporation-income-tax-return/determining-your-corporation-s-tax-year.html

In the case of failing to register the business in the province of operations or activity requires deeper investigation into that Province or Territories’ business registration requirements. Failing to meet those requirements means further investigation into your “deemed” or “defacto” legal standing for those operations.

I suggest that you contact a registry specialist, business incorporations lawyer, and/or the Province of Quebec. In addition I would contact CRA to ask a non-client specific question to find out their take on the matter.

In the past biggest stickler for multiple jurisdictional registrations has been the legal requirement to have a legal physical, records address, and person with whom to tax agents can meet located in the province of incorporate. Proprietorship rules seem to be far less stringent.