Canada client case studies in 2023
Global legal services group secures a professional nominee resident director
Since 2003, Healy Consultants Group assists multinational Clients with business set up in Canada including i) company incorporation ii) corporate bank account opening iii) company secretary and legal registered office iv) regulatory license applications v) Canada tax registration vi) assistance to source physical office premises or virtual office address and vii) employee recruitment and visas.
In December 2021, our UK Client approached us to i) find a suitable professional nominee resident director and ii) sign off a nominee resident director agreement. Our Client provides international legal advisory support through a network of 2000 lawyers based across the globe, spread across 17 countries.
The communication with this Client has been delayed since 2020 due to maternity leave o the key contact, but in late 2021 the case was back on track and our Client settled Healy Consultants Group’s fees. These fees include i) our time to compare 3 different suitable appointees ii) prepare professional nominee resident director agreement iii) sign off relevant consent forms
- The Client engaged us on 10 December 2021. We agreed a full annual pre-payment and Petar sent our Client a receipt, and we were then able to begin the engagement;
- Immediately thereafter, we conducted a video call to agree i) the target background of the professional nominee resident director ii) simple, practical strategies to legally minimize consent timelines and iii) and exchanged draft professional nominee resident director agreement for review;
- I e-mailed our Client a detailed engagement update i) professional nominee resident director draft ii) documents required to progress the Client onboarding process iii) a breakdown of weekly and monthly deliverables iv) an estimated timeline to complete the engagement and v) any expected engagement problems and solutions.
- Simultaneously, our UK Client supplied us the required Know Your Customer due diligence documents on the Canadian company;
- My Staff and I were now ready to project manage the Canada engagement;
Professional nominee resident director appointment
- Within the week, I agreed first draft of our professional nominee resident director agreement with changes in “tracked changes” agreed with our Client;
- Our Client confirmed the corporate structure of the existing Canada company and received within one week a list of 3 proposed professional nominee resident directors with their CV;
- Within one week, the Client agreed on the person to become a professional nominee resident director for their company and we secured the Canadian affiliate’s consent of appointment;
- It took about two weeks in total to agree corporate structure, sign off professional nominee resident director agreement and appoint our preferred director to the new company, all done online;
- For Staff learning purposes, our UK Client supplied us engagement feedback;
- Our Business Website Department also requested a professional reference from our Client as well as an online review;
- Annually thereafter, Healy Consultants Group in-house Accounting and Tax Department assists our Client timely accurately and completely discharge their Canadian legal, accounting and tax obligations;
A USA IT services company establishes a subsidiary in British Columbia
- Our client, a California based IT company involved in network deployment and set up of corporate solutions based on Meraki Cisco Cloud networking technology wished to establish a company in British Columbia to service better their Clients in Canada;
- Having found Healy Consultants Group through Google, our Client sent us an email inquiry and later scheduled a call with our Business Owner, Mr Aidan Healy to discuss their global business outlook and objectives and to determine best jurisdictions to establish their company;
- After multiple conference calls, our Client confirmed they were interested to proceed with company setup in British Columbia and bank account opening but did not need our assistance with a registered address;
- Our Client then proceeded to complete and sign our engagement letter and settle the first instalment of our Canada company incorporation fee to commence the engagement;
- Healy Consultants Group prepared the draft of the proposed corporate structure for the British Columbia company and emailed the same to our Client for review, input and approval;
- Our Client then provided Healy Consultants Group with scan copies of all the due diligence documents as per our Firm’s KYC process requirements;
- Healy Consultants Group then prepared a detailed project plan for the step-by-step process of company incorporation, bank account and tax registration;
- Healy Consultants Group also scheduled a call with a leading Canadian bank to discuss in detail our Client’s proposed business and their objectives in Canada. Following the call, the bank was keen to onboard our Client after the company was incorporated;
- Our incorporation team submitted the proposed company names to BC Corporate Registry for consideration. Unfortunately, the names provided were rejected and our Client had to provide additional company names. Within 1 week the new company name was reserved;
- Thereafter the team i) prepared the Articles of Incorporation ii) collated all documents including proof of name approval and submitted incorporation application to BC Registry Services Corporates Online;
- Unfortunately, because of Covid-19 Pandemic, there was unprecedented timeline delays with the companies registry. Instead of receiving approval within 2 weeks per normal procedure, Healy Consultants Group only obtained approval within 4 weeks. We then provided our Client with the i) certificate of incorporation ii) company extract containing Incorporation Number and Business Number and iii) corporate registry login details;
- Our Client then proceeded to settle the last instalment of the outstanding Healy Consultants Group fees;
- Healy Consultants Group then assisted our Client to register for Goods and Services Tax/ Harmonized Sales Tax (GST/HST) with the Canada Revenue Agency. Our Client also came back to seek our assistance to register for the Provincial Sales Tax (PST) with eTaxBC since their products were subject to local PST and provided the Client with the login details. Healy Consultants Group did not charge our Client any additional fee for this service;
- Healy Consultants Group thereafter liaised with the Canadian Bank and provided the new company documents and tax numbers and advanced corporate account opening with our Client’s bank relationship manager. Bank account approval followed within the next 3 weeks. Banking details were emailed directly to the Client by the bank;
- Following engagement completion, Healy Consultants Group’s then collated all digital copies of the corporate documents including certificate of incorporation, company extract, tax certificates and Tax Office login details and emailed the same to our Client.
Company incorporation and account opening in Canada
- In October 2020, our Client approached Healy Consultants Group to set up an LLC in Canada and open a corporate bank account for the new entity.
- The Canadian company is one of the subsidiaries for the organisation that offers road safety-related products, in-car safety devices and driving aids in Canada.
- We prepared and emailed our Client a detailed engagement advancement proposal. This included a formal invoice itemising costs for agreed services including i) Canada company registration ii) provision of a Canadian nominee resident director and iii) corporate bank account opening.
- Our proposal also included costs breakdown, time frame and accounting and tax liabilities. All fees were agreed upfront.
- Our Client paid the first installment fees for us to begin the Canada company setup process.
- Healy Consultants Group prepared and emailed our Client a draft corporate structure and business plan for review, amendment, and email return.
Canada company registration
- To speed up the process of account opening, our Client agreed to appoint our preferred nominee director as the sole director of the Canadian entity. Healy Consultants Group prepared the nominee and indemnity agreement for our Client and the nominee director to sign.
- Our Client and the nominee signed all required documents and Healy Consultants Group proceeded with company name reservation (nuans).
- Once the company name was approved, our team began the company registration process and submitted the application to register the company.
- Within one week of submitting the company registration application, we obtained the Certificate of Incorporation, Constitution and registers of directors and shareholders, and immediately emailed our Client scan copies of the same. Company registration was now complete.
Canada corporate bank account opening
- Healy Consultants Group’s nominee director booked an appointment with our Client’s preferred bank to open the corporate account.
- Within one week of the nominee director’s appointment, the account was opened, and our nominee received the bank debit card together with the internet banking login details.
- Healy Consultants Group emailed all the details to our Client, who was able to immediately login and view the account. However, our Client required a Visa debit card which was not issued by this bank.
- We immediately informed our nominee, who then visited another preferred bank to open an account which issues Visa debit cards for corporate accounts. Within two days, the account was opened. After another week, the Visa debit card was received by our nominee who activated the account and emailed us all the login information and Visa card details.
- Healy Consultants Group emailed all the details to our Client, who was able to immediately login and view the account. Our Client could now sign contracts, issue invoices, receive funds and pay suppliers through their corporate account.
- Healy Consultants Group appointed our Client as director of the Canadian entity and emailed him the new register of directors. Thereafter, our Malaysia office prepared the company kit, including all registration documents, in readiness for courier to our Client.