For each corporation — big or small — there are certain annual maintenance tasks you must complete each year to keep your business in good standing.
Every corporation must file an annual return with Corporations Canada (in the case of a federal corporation) or Alberta Corporate Registries (in the case of an Alberta corporation) every year.
By filing an annual return, you will be confirming that your corporation’s legal status is “active” (that it is not dissolved, discontinued or amalgamated with another corporation).
Your corporation will automatically be dissolved if the corporation’s annual return is not filed within the designated filing period.
Dissolution can have serious repercussions, including not having the legal capacity to conduct business.
To be clear, the annual return is not your income tax return. The annual return is a corporate law requirement. It is completely separate from any filing obligations you may have with the Canada Revenue Agency (CRA).
Meeting of the shareholders or Annual resolutions
In addition to the filling of an annual return, all corporations must hold at least one annual meeting of shareholders every year.
At this meeting, the shareholders are required to consider the corporation’s financial statements, the election of directors (if necessary) and auditor matters (or dispensing with the auditor).
For corporations with a smaller number of shareholders, it may be more practical to prepare a written resolution rather than to hold a formal meeting.
A written resolution is a written record of decisions made that is signed by all of the shareholders entitled to vote.
If you have questions or would like to arrange corporate maintenance support for your company, reach out to us at firstname.lastname@example.org.