Technology startups

A technology startup is a new business built around developing and commercializing technology, often aiming for rapid growth and outside investment. It is a business term rather than a legal one. Typical legal steps include incorporating, issuing founder shares with vesting, securing intellectual property, signing customer and contractor agreements, and raising capital in compliance with securities law.

How BC law treats it

Most BC startups incorporate under the Business Corporations Act, SBC 2002, c 57 (BCBCA) or the Canada Business Corporations Act, and must issue shares to investors under a prospectus exemption such as those in National Instrument 45-106. Some may qualify for federal Scientific Research and Experimental Development (SR&ED) tax incentives.

What it means for your business

Getting founder share terms, intellectual property assignments and a shareholders' agreement in place early avoids costly disputes later.

Risks and common mistakes

Raising money informally from friends or online without a valid prospectus exemption can breach securities law and complicate later financing.

Fulcrum's business and startup lawyers can help with these issues.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.