Guide - How to Complete the Application for Registration of a Corporation (FIN 574)
Budget 2017 Update proposes to eliminate the International Business Activity program effective September 12, 2017.
This guide is to help you complete sections of the form that require additional detailed instructions.
The location of the books and records for the international business must be in B.C., unless otherwise approved. If the books and records are in more than one location, please attach a list.
This can be a lawyer, accountant, or a person in the corporation who is accountable for the IBA program. If a person outside of the corporation is assigned as the business contact, complete an Authorization or Cancellation of a Representative (FIN 146) (PDF). This form allows us to release information to your representative.
Please check one of the following types of international businesses that are or will be carried on by the corporation:
- International Financial Business
- International Film Distribution Business
- International Patent Business
- International Digital Media Distribution Business (will be defined at a later date)
A corporation must establish and carry on an international business within 90 days of registration.
Please answer all questions within Section 4
Box 4A - indicate if the corporation is a result of an amalgamation of one or more IBA registrants. If YES, the new corporation should notify the Ministry of Finance (ministry) by completing and submitting an Application for Registration of a Corporation (FIN 574) together with Schedule A – Amalgamation (FIN 574A) and all applicable attachments. For more information, see Schedule A: Amalgamation under section 5, Supporting Documentation.
Box 4B - a corporation is not eligible to register if it is exempt from tax under section 27 of the Income Tax Act (B.C.). This includes any corporation exempt from tax under section 149(1) of the Income Tax Act (Canada) (federal Act) and non-resident owned investment corporations.
Box 4C - indicate if the corporation is incorporated or amalgamated in Canada. If YES, please provide the date of incorporation or amalgamation.
Box 4D - provide the three digit registration number that was given to the corporation when it became a member of the International Financial Centre British Columbia Society (IFC BC) (known as AdvantageBC) . If the corporation does not have an AdvantageBC or IFC BC registration number, it must become a member within 90 days after the date that the Notice of Registration is issued.
Box 4E - indicate if the corporation has a permanent establishment in B.C. If YES, please provide the location if it is different from the mailing address. Permanent establishment has the same meaning as in section 400(2) of the federal Act and includes a fixed place of business.
Box 4F - indicate if the corporation has a fixed place of business in B.C. If YES, please provide the location if it is different from the mailing address. Please attach a list if there is more than one fixed place of business located in B.C. If NO, the corporation's international business must be carried on through a fixed place of business in B.C. within 90 days after the date that the Notice of Registration is issued.
This schedule must be used when registering a corporation that became a new corporation as a result of an amalgamation of one or more registrants.
Where two or more corporations amalgamate and at least one of the corporations was registered under the IBA program, the continuing (new) corporation must notify the ministry by re-registering in order to maintain continuity of eligibility for the IBA program.
The new corporation will be registered and the registration fee will be waived where:
- the notification has been made within 90 days of the date of amalgamation or within a later period, as approved by the ministry (on time),
- the notification contains the required information, and
- the ministry is satisfied that the continuing corporation meets the requirements of the Act.
The new corporation will be registered effective the date of amalgamation.
If notification is not received on time, the new corporation will be considered to be a new applicant and will be required:
- to reapply for registration as a new corporation, and
- to pay the registration fee.
The effective date of registration of the new corporation will be no earlier than the date of application, rather than the date of amalgamation.
Where two or more corporations amalgamate, and all of the predecessor corporations were registered under the IBA program immediately before the amalgamation, the continuing (new) corporation will be registered when the new corporation notifies the ministry by re-registering. The effective date of registration will be the date of amalgamation and the registration fee will be waived.
Authorization or Cancellation of a Representative
The ministry requires the corporation’s authorization to release confidential information to a person specified as a representative (such as the corporation’s lawyer or accountant).
The corporation can have more than one authorized representative at any given time. Complete a Authorization or Cancellation of a Representative (FIN 146) (PDF) to authorize one or more representatives, change information about an existing representative or cancel the authorization. The authorization will stay in effect until it is cancelled.
Incorporating and legal documentation - include copies of the appropriate incorporating and legal documents. These may include copies of the Certificate of Incorporation, Memorandum and Articles, Letters Patent, licensing or registration information, or other similar documents.
If the corporation was formed as a result of an amalgamation please provide the Certificate of Amalgamation and any other related documents.
Business plan - submit a business plan that describes how the corporation intends to conduct its international business.
For a new business, your business plan should include the following financial documentation, if available: projected IB income statements, projected IB balance sheets, and IB cash flow projections.
For an existing business, you may provide actual financial statements from the most recent period for which you have financial statements and income tax returns, unless your IB plans to change its operations materially (if this is the case, please provide projected statements).
The business plan is the key information that will help us determine the corporation’s eligibility for the IBA program. The business plan should describe how the business operates, how it will perform the activities/transactions indicated and, if appropriate, how the corporation’s accounting systems will allow qualifying activities to be distinguished from non-qualifying activities.
For an existing business, the information could include:
- an organization chart of the business
- an explanation of the day to day operation of the business
- types of activities/transactions – how they are carried out and by whom
- volume of transactions
- the number and types of employees who will be active in the business, including plans for future expansion, if any
- where the business is transferred from another jurisdiction, a timeline for the transfer
Where the international business is a new business, similar information should be included as well as a marketing plan.
If the international business is not the only business carried on by the corporation, please provide an approximate percentage that the international business is, or is projected to be, of the corporation’s overall business.
List of international financial activities or qualifying transactions - for an international financial business, provide a list of proposed international financial activities, including a full description of each activity. For each activity, please indicate whether or not the activity will be conducted with or on behalf of non-arm’s length or affiliated persons.
List of locations - provide a list of all locations if there is more than one fixed place of business.
Recent financial statements - provide a copy of the most recent financial statements including notes to the financial statements. If this is the corporation’s first year of business, interim financial statements or pro-forma financial statements may be provided.
Recent corporate income tax return - provide a complete copy of the most recent corporate income tax return with attached schedules, if applicable.
List of directors and contact information - provide a list of directors and their contact information.
List of related or affiliated persons - provide a list of all related or affiliated persons of the corporation. Arm’s length, affiliated, and related persons have the same meaning as in the federal Act.
Please note: Additional information may also be requested during the registration process to substantiate eligibility depending on the corporation’s specific circumstances.
The registration fee is $5,000 and payments can be made:
If the corporation is refused registration under the Act, we will refund $4,000.
If the application is for a new corporation formed by amalgamation, please see above Schedule A: Amalgamation under section 5, Supporting Documentation.
Provide the required information in the appropriate spaces. The person who signs and dates the application must be an authorized signing authority of the corporation.
Mail or courier your application to the Ministry of Finance, Income Taxation Branch:
PO Box 9444 Stn Prov Govt,
Victoria BC V8W 9W8
1802 Douglas Street,
Victoria BC V8T 4K6
Contact us with your questions by phone in Victoria at 250 953-3082 or toll free within B.C. at
1 800 663-7867, or email us your questions at ITBTaxQuestions@gov.bc.ca