Foreign companies setting up branches in Canada are subject to several requirements explained below. You can rely on us for assistance in expanding your company through a branch office in Canada.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Canadian laws (for incorporation, taxation and compliance, employment, etc.) |
Best Used For | When the foreign company wants to replicate the same business model and to sell the same products/services. It is most suitable for the banking and financial services industries. |
Minimum share capital in Canada (YES/NO) | No – there aren’t any capital requirements to establish a branch in Canada. |
| Time frame for the incorporation (approx.) | The basic registration steps to establish a branch in Canada can be completed in 1-5 business days. Additional registration procedures, such as the issuance of licenses, etc., can increase the overall registration to 21-35 days. |
| Documents to be filed by parent company | In order to establish a branch in Canada, one needs: – the statutory documents of the parent company (articles of association, registration certificate, etc.), – information on the company’s shareholders, directors and secretary, – the application for registration, – information on the appointed local representative. |
| Management (Local/Foreign) | Locals or foreigners who are residents of Canada |
| Legal representative required (YES/NO) | Yes |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | No |
| Liability of the parent company | Fully liable |
| Corporate tax rate | The standard federal corporate income tax is 38%, but companies can benefit from federal tax abatement and a general tax reduction, which can lower the tax rate to 28%, and 15%, respectively. Lower rates are available in certain Canadian regions, varying from 0% to 16%. |
| Annual accounts filing requirements | Yes, but fewer regulations apply compared to other company types. |
| Possibility of hiring local staff (YES/NO) | Yes |
| Travel requirements for incorporating branch/subsidiary (YES/NO) | No |
| Double tax treaty access (YES/NO) | Yes |
Table of Contents
What are the main characteristics of a Canadian branch?
The branch office is an extension of a local or foreign company in Canada. It is also known as a satellite company as it will be completely dependent on the parent company. Starting from this aspect, these are the main features of a Canadian branch office:
- the registration requirements are simpler than in the case of a subsidiary company;
- it will need to complete the same activities in Canada as the parent company, however it must obtain its licenses from the Canadian authorities;
- it has no separate legal personality from the parent company which will be entirely responsible for the branch’s obligations;
- from a taxation point of view, a branch will be levied on the income derived in Canada;
- it will bear the same name as the parent company and must appoint a legal representative in Canada in order to deal with the authorities.
What documents are necessary for the registration of a branch?
The documents to be filed with the authorities when creating a branch in Canada are:
- information about the parent company along with its certificate of incorporation;
- the incorporation documents of the branch office to be established in Canada;
- a declaration with the names of the branch directors and secretary;
- information about the local representatives of the parent company in the branch office.
What are the main registration costs?
If you want to start a business in Canada in 2026, you should know that some of the costs are:
- company registration fees – minimum CAD 1,250 (pre-incorporation consultation services offered by our team, trade name reservation and approval, drafting and signing the articles of incorporation, issuance of the certificate of incorporation, etc.);
- registered address – costs per year start from CAD 450 (it is mandatory to have a registered address in Canada in order to carry out a business activity);
- incorporation fees charged by the governmental institutions – ranging from CAD 200 to CAD 600, depending on the province selected for registration).
We also invite you to see our scheme showing the steps for opening a branch in Canada:
How long does it take to register a branch in Canada in 2026?
The period of time necessary to register a branch in Canada may slightly vary from one province to another. In the list below, our consultantspresent a few of the highlights of the processing times associated with the registration process. Please mind that additional time may be needed for licensing procedures, bank account setup and others:
- after our team has gathered all the documentation required for the registration of the branch, our consultants will submit the file in maximum 1-2 days;
- once the file has been successfully submitted by our team, the competent Canadian Registrar can process the application in a period of a few business days, but not longer than 8-9 days;
- please know that Canada offers expedite registration services upon the payment of an additional fee, situation in which the basic registration procedure can be completed in only 1-2 business days after the registration file has been submitted.
What are the taxation rules for branches in Canada in 2026?
From a taxation point of view, the branch will be levied by the Canadian tax authorities with the profit tax on the income generated in this country. The following rates apply in respect to the taxation of branches in Canada:
- a 25% rate on the net income the non-resident company earns through the branch in Canada, provided that the income is not reinvested in the branch;
- under some double tax agreements, a foreign company can be exempt from taxes on the first 500,000 CAD from the branch profit tax;
- other withholding rates applicable under Canadian double tax treaties are 5%, 10% and 15%.
Below, we invite you to watch a short presentation on the process of opening a branch in Canada:
Do I need post-incorporation services for my branch?
Once investors have registered a branch office in Canada, they will need dedicated business services in order to complete the company’s compliance obligations. In this sense, our team can offer the following:
- tax consultancy;
- submission of annual tax returns;
- VAT reports;
- payroll services;
- year-end tax projection, etc.
Please mind that for these services, we charge CAD 2,250-4,000. We recommend you address our team for more details on our full list of corporate services.
If you want to open a company or a branch office in Canada and need assistance, please feel free to contact our company formation agents.