What Does Annual Maintenance Involve?
Annual maintenance refers to the yearly legal and administrative tasks required to keep your corporation in good standing with government authorities and internal records. These tasks are not optional. They are required by law and apply to all Ontario corporations, regardless of size or industry.
While some business owners handle these responsibilities on their own, many turn to professionals (such as SkyLaunch or SkyLaw) for help staying organized and compliant.
Here are the core areas typically covered under annual maintenance services, .
1. Filing Required Returns
- Initial Return: Submitted shortly after incorporation to declare key corporate information. We do this for all of our customers right after the incorporation process is complete, so you don’t need to worry about it.
- Annual Return: Filed every year to confirm or update corporate details such as registered address and directors.
These filings ensure your corporation remains active in the government’s records and avoids administrative penalties or dissolution.
It should be noted that these corporate returns, which are filed with the Ontario Business Registry, are separate from your corporation’s tax returns which are filed with the Canada Revenue Agency (CRA).
2. Annual Shareholder and Director Resolutions
Even if you’re the only shareholder and director, your corporation is still required to pass annual resolutions to:
- Approve the financial statements
- Appoint or confirm directors and officers
- Appoint or waive the appointment of an auditor
In multi-shareholder corporations, these resolutions are even more important, and must be properly documented.
3. Maintaining Your Minute Book
Your minute book is the legal backbone of your corporation. Annual maintenance typically includes reviewing and updating:
- Shareholder and director registers
- Annual resolutions or meeting minutes
- Share issuances or transfers
- Officer appointments and resignations
A well-kept minute book (which is often requested during financing, tax audits, or due diligence) enhances credibility and helps ensure that your corporation stays in good standing.
4. Tracking and Reporting Changes
Annual maintenance also helps ensure that any changes to your corporation are properly documented and reported, such as:
- Changes to directors or officers
- Changes to your registered office
- Updates to business activities (where applicable)
Failing to report these changes promptly can lead to inaccurate records and compliance issues down the line.
Why This Matters
Staying compliant isn’t just about checking boxes: it protects your corporation’s legal standing and credibility. Without proper maintenance:
- Your corporation could be dissolved for non-compliance
- Shareholder rights may be unclear or unenforceable
- Financial transactions (like raising capital or selling the business) could be delayed
- Personal liability may increase if governance lapses are uncovered
Proper annual maintenance supports the legal health of your business and reduces the risk of unexpected legal or regulatory issues.
Final Thoughts
Whether you handle it yourself or work with a legal advisor, annual maintenance ensures your corporation stays compliant, organized, and ready for growth.
But don’t worry, SkyLaunch’s Complete Compliance Package helps take these worries off your plate.
