Sadly, while many Canadian tourism businesses are looking at creative ways of sustaining their operations during the COVID-19 pandemic, others will find the challenges of remaining afloat are too much, and will need to close down. Closing a business in Canada is not difficult, but there are various steps you will need to go through.
- Cancel your business registration for your sole proprietorship/partnership, or dissolve your corporation voluntarily. The forms for doing so are different in each province. Here are links to the relevant web pages for Ontario, Quebec, British Columbia and Alberta.
- Dissolve your corporation. This needs a special resolution to be passed at a meeting (or the written consent) of all voting shareholders. Again, here are links to the relevant forms for Ontario, Quebec, British Columbia and Alberta.
- Wind up your payroll accounts. All CPP contributions, EI premiums and income tax deductions need to be sent to your tax centre within seven days of your business ending.
- Submit your final tax return to the CRA, including a copy of your articles of dissolution (to avoid having to continue to file an annual tax return for the dissolved company).
- Close down your sales tax accounts. Your accounts for the GST, HST and PST all need to be closed, with any outstanding amounts paid, via form RC145, which you need to send to the CRA. There are slightly different procedures in Quebec, British Columbia and Saskatchewan.
- Notify your municipality that your business has closed if you have obtained a business licence to operate there.