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Tom B.
Tom B., Barrister & Solicitor
Category: Canada Law
Satisfied Customers: 2414
Experience:  25 years in practice
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I am planning to register a software company in Canada

Customer Question

Hello I am planning to register a software company in Canada where I will get the contracts or clients in Canada but all the people who are working for me would be in India. Can you tell me what kind of legally structure a company(corporate) like this??
Submitted: 1 year ago.
Category: Canada Law
Customer: replied 1 year ago.
Can you tell me what kind of legal structure that a company like this should have??
Expert:  Tom B. replied 1 year ago.
Hello
The question of what actual corporate structure required could be a very complex matter and should only be discussed with your own lawyer. Matters of shareholders and financing and perhaps banking are matters that you must have personal advice on. Also, you will not find anyone here that has any knowledge of the laws of India.
However, anyone doing international trade should incorporate in my opinion. This can be a provincial company or a federal company. The latter is best when a person wants a bit more name protection across Canada or wants to open physical offices in other provinces. Otherwise, a provincial company will do to protect your private assets which is the goal of any incorporation.
Simply put, people incorporate so that if things do not work out, their personal assets are protected from law suits or money claims. Only the corporation can be sued.
It sounds as though people working in India will be "contractors" as opposed to employees. You and they write down what is supposed to be done and what the payment will be. The contract is between the new Company and them and I suggest the contract state that disputes are governed by the law of the province the company is in and that the courts of that province have absolute jurisdiction.
If something goes wrong, that means the company has to be sued where you are as opposed to in another country.
Not being your personal lawyer all I can suggest is that you incorporate as you see fit and issue contracts to those in India who will do the work.
If you have a follow up question, please advise. Otherwise, please rate my answer well.
Sincerely,
Tom