Foreigners interested in company formation in Canada can establish several business forms like corporations, partnerships, co-operatives or sole proprietorships. Our specialists can provide the necessary legal support and dedicated company formation services.
| Quick Facts | |
|---|---|
| Company Formation Cost in Canada | Starting price of CAD 1,250 |
What does the standard registration package include? | – business consulting services, – drafting and signing the bylaws for the selected company type, – proposing and registering a trade name, – appointing directors, – obtaining a Business Number |
Do you supply a registered address? | Yes |
| How much does it cost to obtain a registered address in Canada? | CAD 450 per year |
| Local director required | It depends on the province (for instance, in Ontario, British Columbia and Alberta there aren’t any residency requirements for the appointed directors). |
| Foreign-ownership allowed | Yes |
| Legal entities for non-residents in Canada | – partnership, – corporation, – cooperative, – branch |
| Rule of law for non-resident businesses in Canada | – Investment Canada Act, – Business Corporation Act |
| Minimum share capital for corporation | There aren’t any capital requirements. |
| Minimum number of shareholders for corporation | Only 1 shareholder is necessary in order to open a corporation in Ontario. |
| Types of registrations | Federal and provincial |
| Types of companies | – partnership (types: general, limited, limited liability), – corporations / Ltd |
| Time frame for the incorporation (approx.) | Minimum 1 day (the overall registration procedure can be completed in maximum 8 to 9 business days). |
| Do Canadian authorities provide expedite incorporation services? | Yes, can be done in 1-2 business days since the submission of documents. |
| Locations where our team offers incorporation services | – Ontario, – British Columbia, – Nova Scotia, – Alberta |
What are our basic services for company formation in Canada?
When opening a company in Canada, the basic registration steps that must be completed (and which are offered by our team) are:
- the reservation and the approval of a trade name;
- drafting and signing the articles of incorporation;
- preparing and submitting the registration file, containing the mandatory paperwork;
- obtaining the certificate of incorporation;
- appointing directors (in some Canadian provinces, the director must be a Canadian citizen or permanent resident, while in others, there aren’t any residency obligations for the company’s director) ;
- obtaining a Business Number.
What are the costs associated with opening a company in Canada?
Below, our clients are invited to observe the main costs associated with incorporating and running a business in Canada:
- registered address – CAD 450/year;
- government registration fees – they vary from CAD 200 to CAD 600, depending on the selected province;
- standard company formation fees – CAD 1,250 (charged for the standard incorporation procedure, which includes business consultation services, trade name reservation, articles of incorporation, tax registration);
- the price is applicable provided that our clients sign an annual maintenance package, otherwise the fees can go up to CAD 2,500-3,500 for the same package;
- please mind that we also charge a 13% sales tax;
- accounting costs – CAD 2,250 to CAD 4,000, depending on the selected services.
What are the documents required for setting up a company in Canada?
Companies can be registered if the following documents are provided to the local institutions during the process of starting a business in Canada:
- articles of association through the federal or provincial incorporation entities in Canada;
- the business number which is issued by the Canada Revenue Agency for tax purposes;
- detailed information about the new company’s shareholders (name, address, nationality);
- information about the business address of the company to be registered;
- the company’s bank account where the share capital will be deposited.
How long does the company incorporation procedure take?
The company registration procedure is not lengthy in Canada. Concerning the company registration processing times, the following apply:
- once our clients have submitted the necessary company registration documentation and have paid the registration fees, our team can submit the file in 24-48 hours with the competent authorities;
- registrars in Canada can process the application in a period of up to 8 or 9 business days;
- expedite services are available, in which case the registration procedure can be completed in only 1 to 2 business days.
We have also created a scheme showing the procedure of opening a company in Canada:
What types of companies can investors open in Canada?
There are a few types of entities for starting a business in Canada:
- sole proprietorships – they require a single member who conducts the business by himself/herself (read more);
- partnerships, which can be general or limited and needs at least two founding members (read more);
- corporations, which must have at least one shareholder and a director (read more);
- co-operatives, which can be established as for-profit or non-profit reasons and can have a large number of shareholders.
How can foreign companies expand on the local market?
Foreign companies can register branches, representative offices and subsidiaries in this country and our specialists in company incorporation in Canada can offer help with the local procedures.
In what provinces can our consultants offer company formation services?
Our team can provide professional company incorporation services in many Canadian regions. Investors must know that our team is located in Ontario, but we can also offer full registration assistance in:
- British Columbia;
- Alberta;
- Nova Scotia;
- federal registration.
Important: Foreign investors who want to set up companies in Canada can register them at the federal or provincial level. The main difference between the two types of registration procedures resides in the possibility of offering services and selling goods on the Canadian territory.
What is the minimum share capital in Canada?
The Commercial Law does not impose a minimum share capital for registration of a company. However, the company will need a capital.
What are the taxes that I have to pay in Canada?
The taxation system in Canada is imposed at federal and territorial levels. The rates also differ and are applied for different thresholds of income, which is why accounting services are recommended. Read more about taxes here.
| Territory | Lowest Rate | Highest Rate |
| British Colombia | 2% | 12% |
| Manitoba | 0% | 12% |
| Northwest Territories | 4% | 11.5% |
| Nunavut | 4% | 12% |
| Ontario | 3.5% | 11.5% |
| Newfoundland and Labrador | 3% | 15% |
| Prince Edward Island | 4.5% | 16% |
| Nova Scotia | 3% | 16% |
| Saskatchewan | 2% | 12% |
| New Brunswick | 3% | 14% |
| Yukon | 2% | 12% |
Do I need special permits and licenses in Canada?
Yes, depending on the activities a company will undertake, special licenses will be required. Read more on this here.
For further information about company incorporation in Canada, we invite you to contact our team of advisors.