Business corporation

A business corporation is an entity that, within the framework defined by law, holds a legal personality. It is, as such, entitled to rights and obligations of its own. It has a distinct existence from its shareholders; It has property in its own name, it acquires rights, assume obligations and responsibilities under said name; it signs contracts and agreements; it can sue or be sued as an individual, etc.

The owners of the corporation, the shareholders, are holders of property titles called shares. Each shareholder holds at least one share. The liability of the shareholders is limited to their investment.

In Quebec, "provincial" business corporations are mainly subject to the Quebec Business Corporations Act (QBCA) and "federal" business corporations are subject to Canada Business Corporations Act (CBCA).