How to Dissolve a Corporation
Depending on your situation, the process for dissolution may vary. Like mentioned above, a corporation can only dissolve once it has zero property or liabilities.
If you intend to dissolve and you have property, you may wish to start liquidating assets before applying for dissolution.
In this case, after a resolution to dissolve has been passed by shareholders, or each class of shareholders, the corporation distributes the property and discharges liabilities according to the Articles and Canada Business Corporation Act. It may then apply for a Certificate of Dissolution by first submitting a signed copy of Articles of Dissolution
to the government.
Alternatively, you can start dissolving your corporation before liquidating all your assets.
Under this course of action, the corporation must apply for a Certificate of Intent to Dissolve by first submitting a Statement of Intent to Dissolve
to the government. The Certificate of Intent to Dissolve gives notice to creditors and the public that the corporation is no longer carrying on business. At this time, the corporation must disperse remaining assets among shareholders according to the Canada Business Corporation Act, and once liquidation is done, it can apply for a Certificate of Dissolution to complete the dissolution process.
Corporations Canada reviews your application to make sure the corporation has fulfilled its requirements before issuing the certificate.