Canada allows for the establishment of holding companies under very advantageous conditions. Our company formation consultants in Canada can help you set up a holding company.
| Quick Facts | |
|---|---|
| Legal entities used | Corporation |
Incorporation method | The standard registration process applicable to Canadian businesses |
Incorporation time | Between 5 and 30 days, depending on the Canadian province |
| Advantages | – asset protection, – tax advantages, – capital gains exemptions, – estate planning, – reduced exposure to risk |
| Precautions | – incorporation costs can be high, – operating costs can be high, – complex administrative procedures |
| Shareholding structure | The holding company owns at least 50% of the shares of another company. |
| Minimum Capital | No capital requirements |
| Taxation | Corporate taxes are applied, but there are certain tax exemptions (on capital gains, the small business deduction and others) |
| Control | The holding controls the management of its subsidiaries, but it does not engage in their activities. |
| Accounting and Reporting | There is an obligation to submit yearly accounting files with the tax authorities. |
| Number of double taxation treaties | 94 |
| The purpose of a holding company | The holding company is created for the purpose of holding and managing other companies. It does not carry out commercial activities. |
Types of holding in Canada | Investment and operating holdings |
Financial statement obligations (yes/no) | Yes |
| Financial statements to prepare at the end of the financial year | A holding company in Canada is required to prepare the income statement, the cash flow statement and the balance sheet. |
| Accounting principles to abide by | The holding will need to prepare its financial documents following one of the 3 principles mentioned below: – the Accounting Standards for Private Entities; – the International Financial Reporting Standards; – the Canadian General Accepted Accounting Principles. |
| Tax registration | The holding company in Canada is required to comply with tax registration obligations (obtain a tax identification number, register for GST/HST, etc). |
| Statutory documents | Shareholders’ Agreement, the Articles of Incorporation |
| Asset ownership policies | The holding can own a variety of assets, there aren’t any restrictions in this sense, only that it can’t engage in commercial activities. |
| Investment restrictions | There aren’t any investment restrictions. |
| Is it possible to transfer assets from one holding to another? | Yes |
| How can investors sell their participation in a holding? | Through the disposal of shares |
| Tax incentive for the sale of shares | The Lifetime Capital Gains Exemption (It applies to entities registered as Canadian Controlled Private Corporations. The owners of companies that are registered as public entities can’t benefit from this exemption). |
| Ongoing costs | A holding company in Canada will have ongoing costs regarding the accounting and bookkeeping services, the legal and tax services, tax payment obligations, employment and others. |
| Bank account requirements | The holding must open a corporate bank account in Canada. |
| Services provided by our team | Our consultants can provide full legal representation on the registration of the holding, as well as assist investors in any post-incorporation service (tax, accounting, tax reporting, signing agreements, etc.). |
Table of Contents
What is a Canadian holding company?
The holding company is an entity which is created for the purpose of gathering various assets, such as real estate, shares, or companies under one umbrella, or better said under another company which has control over these assets.
What are the main steps of registering a holding company in 2026?
In order to register a business in Canada as a holding, investors will need to go through the basic incorporation steps regulated by the national law. In the list below, you can discover the general steps for the registration:
- decide on a type of legal entity and a company name (steps imposed for all businesses during the setup of a company in Canada);
- complete the mandatory registration formalities with local institutions (the procedures are initiated with Corporations Canada);
- apply for a tax registration number and open a corporate bank account;
- once the company is active, it can engage in the purchase of shares in other companies.
You can read about the main steps of setting up a holding company in Canada in the scheme below:
How long does it take to register a holding in 2026?
In order to open a holding company in Canada, you will need to follow standard registration steps, that are applicable to all business forms. Regarding the duration of the registration process, you should know the following:
- once we have gathered all the necessary paperwork from our client, we can submit the file in a period of 24 to 48 hours;
- after the documentation has been submitted to the Registrar, it can take up to 8-9 business days until the registration process is officially completed.
Is it possible to benefit from expedite registration services in 2026?
Yes, if you plan to open the holding company in Canada as soon as possible, you should know that you can opt for expedite registration services, which can be completed in only 1-2 business days.
What are the fees associated with company formation in Canada?
Company registration fees are charged regardless of the business form you are interested in setting up here. During the incorporation process, you will need to pay governmental fees, ranging from CAD200 to CAD600, depending on the province where you want to incorporate. Our consultantsalso charge fees for their services – CAD2,000 (some of our basic services included in this price are presented below).
What are the main services your team can offer to foreign investors?
During the registration of a holding, our team will provide the following types of services:
- assistance in obtaining a trade name in Canada;
- prepare the registration file and submit it with the Canadian Registrar;
- draft and sign the company’s bylaws;
- prepare the company’s initial resolutions;
- appoint directors;
- obtain a Business Number from the Canadian Revenue Agency.
What are the advantages of holding companies in Canada?
Those who set up holding companies in Canada will mainly benefit from:
- enhanced protection against creditors;
- capital gains tax exemptions;
- dividend tax exemptions.
What are the accounting obligations of Canadian holding?
The company must prepare, for the end of the fiscal year, financial statements, which, in this case, are comprised of the following documents (they can sometimes vary based on the type of company and its size):
- income statement;
- cash flow statement;
- the balance sheet.
What are the accounting principles a holding can enforce?
The manner in which accounting formalities are completed varies, also, based on the size of the company, and here, the holding has 3 options:
- the Canadian General Accepted Accounting Principles;
- the International Financial Reporting Standards (IFRS);
- the Accounting Standards for Private Enterprises.
What are some of the financial/ tax rules applicable to a holding?
If you open a company in Canada as a holding, you must also know the following:
- in the case in which the holding owns more than 50% of the shares of another company, the law considers that the holding has control over the latter company, therefore, from an accounting point of view, it will be obligated to prepare consolidated financial statements;
- for corporate entities, the financial year can vary, thus, in some cases it can be the calendar year (1st January to 31st December) or it can be calculated from the date when the company started its operations, with a duration of maximum 53 weeks;
- companies that are registered as public must follow the IFRS procedures, as of 2011;
- investors can benefit from tax deductions on the disposal of shares under the Lifetime Capital Gains Exemption, regulated under the Section 110.6 of the Income Tax Act.
We invite you to watch our video on the Canadian holding company:
Where can you assist me in opening a company in Canada?
If you want toopen a company in Canada as a holding or any other type of business, you can rely on our team for full legal representation in the following provinces:
- Ontario;
- British Columbia;
- Alberta;
- Nova Scotia.
We also provide full legal assistance for federal registration.
Why should investors select your specialists in company registration in Canada?
Our team provides tailored solutions to the needs of foreign investors. We offer competitive prices that include a variety of services. Our consultantsare licensed in their field of expertise, which cover not only the incorporation of a holding or any other company type, but also post-incorporation matters, such as payroll, accounting, taxation, etc.
Please feel free to contact our company incorporation advisors in Canada.