Running a corporation in Alberta involves juggling numerous administrative tasks and deadlines. Missing any of these crucial dates can lead to significant legal and financial repercussions. To help you stay on top of these requirements, we've compiled a comprehensive list of key dates and tasks that every Alberta corporation should mark on their calendar. From filing tax returns to renewing business licenses, here's what you need to know to ensure your corporation remains in good standing.
- Corporate Tax Returns – All Alberta corporations (except tax-exempt Crown corporations and registered charities) must file a corporation income tax (T2) return every tax year even if there is no tax payable. A corporation's tax return must be filed within six months of the end of each tax year. The tax year of a corporation is its fiscal period, and you are likely able to file these returns electronically.
- Financial Statement Preparation – Under Alberta's Business Corporations Act, every Alberta Corporation must prepare and present yearly financial statements (income statement, balance sheet, cash flow). These financial statements are to be presented to the corporation's shareholders at the corporation's annual meeting. This requirement can be dispensed with by unanimous consent of the shareholders, which is commonly done by way of resolution.
- Annual Returns – All Alberta corporations must file an annual return each year. The due date for this return is due in the corporation's month of incorporation (e.g., if you incorporated in July, your annual returns will be due in July each year). This is a legal requirement and must be completed within 18 months of the due date for a corporation to maintain its status with Corporate Registries. After the 18th month mark, your corporation will be struck from Corporate Registries.
- Update Corporate Records – As your annual return date approaches, it is a good idea to ensure you have made a record of any changes to directors or shareholders and that the corporation's annual resolutions and records of other business decisions are properly recorded in the corporation's minute book. Often, your lawyer will request you confirm there have been no changes to your address, current shareholders, directors, or the appointed agent for service prior to filing your returns. Failure to maintain your corporation's minute book and the mandatory documents set out in Alberta's Business Corporations Act can result in a fine of up to $5,000.
Notably, it is particularly important to update registries if your registered office changes. This is because a party who sues your corporation is entitled to serve a claim at the registered office of your corporation. If this address changes and you fail to file a notice of change in address with corporate registries, the potential consequences could be serious, including that your corporation may not receive notice of the claim before the deadline to file a statement of defense or otherwise defend against the claim.
- Business License Renewal – Your corporation may need a license to operate its business. It is important that you keep track of when it may be time to renew your business license. This includes ensuring any related fees are paid prior to the expiration of your current license and that your corporation complies with local municipal regulations.
- Regulatory – If your corporation
operates in a regulated industry, it is important that you follow
industry-specific regulations and requirement and ensure timely
compliance with all deadlines, renewals or notice periods set out
in those regulations. This may include annual equipment or vehicle
inspections or even regular maintenance being required by your
regulator.
- Insurance – Most operating corporation hold some form of business insurance. It is very important that an insured Corporation keep track of and renew its business, property and automotive insurance on an annual basis, or as otherwise required by your insurance company. It is also important to ensure your corporation maintains compliance with any terms of its insurance policies, including ensuring all vehicle registrations have not expired, that any potential claims have been reported to your insurer, and that all premiums are paid before they are overdue.
Staying organized and proactive with your corporation's administrative responsibilities is vital for maintaining its legal status and avoiding costly penalties. By keeping these key dates and tasks on your radar, you can ensure that your corporation operates smoothly and complies with Alberta's regulatory requirements. If you need assistance with any of these tasks, or if you have questions about your specific situation, please reach out to the author of this post.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.