Our company formation agents can help you open an LLCin Canada.
| Quick Facts | |
|---|---|
| Types of LLCs | The standard form of a limited liability company (LLC) met across the world does not exist in Canada. The closest forms are either the limited liability partnership (LLP) or the corporation, which refers to a corporate body (the most important options being Canadian-Controlled Private Corporation or the Other Private Corporation). |
Most suitable for | The LLC can enter most of the business activities available in Canada, unless limitations are prescribed by the local law. |
Minimum number of shareholders | 1 |
| Maximum number of shareholders (if applicable) | 50 |
| Law regulating the procedure of opening an LLC | Investors can open an LLC in Canada following the regulations of the Business Corporations Act. |
| Institution in charge with the registration of the LLC | Corporations Canada |
| Director requirements | – minimum 1 director; – an age of minimum 18 years old; – the person must be an individual (not a corporate entity); – not be declared bankrupt; – not be declared incapable as per the Canadian laws. |
| Corporate taxes | The standard national corporate tax is 38% (the net tax can be reduced to 15%). For small businesses, the reduced national tax is 9%. Regional corporate taxes apply and they vary from 0% to 16% depending on the income and the region. |
| Minimum requirements to open an LLC | One can open an LLC in Canada after: preparing the incorporation documents,submitting them with the local authorities, selecting a suitable business address, having a unique corporate name, opening a corporate bank account, obtaining licenses and permits and the tax registration number. |
| Apply for a business number (yes/no) | Yes |
| Foreign ownership rules | Foreign investors have the right to full ownership. |
| Who can register an LLC | Both locals and foreign investors can open an LLC in Canada. |
| Statutory documents of an LLC | The LLC gains legal personality through the articles of incorporation. |
| Documents to prepare for the incorporation | – the articles of incorporation; – the lease/purchase contract for the company’s office; – the company’s Federal Business Number; – personal information on the shareholders; – information on the directors; – translated and notarized documents, where necessary. |
| Audit requirements (yes/no) | Yes |
| Types of registration in Canada | Companies, including LLCs in Canada, can be registered at a federal or provincial/territorial levels. |
Federal registration | The federal registration implies that the company is registered at a national level and it can engage in economic activities on the entirety of the Canadian territory. |
Regional registration | Through a regional registration, a legal entity has the right to develop its activity only in the province or territory in which it was incorporated. |
| What does extra-provincial registration refer to? | Companies that are incorporated at a provincial/territorial level have the possibility of expanding their operations outside the region where they have been registered. If they want to operate in a new territory/province, they need to register as extra-provincial/extra-territorial entities. |
| Is it necessary to apply for business permits and licenses for an LLC in Canada? | Investors who open an LLC in Canada may be required to apply for business permits and licenses based on the activity of the company, but also on the region in which the legal entity has been incorporated. |
| Winding up formalities | Winding up is done in accordance with the type of registration the company has. Thus, companies registered at a federal level are liquidated by federal authorities, while those registered at a provincial/territorial level fall under the supervision of local bodies. |
| Submission of tax documents | LLCs liable to taxes must submit monthly, quarterly and yearly tax reports. |
| Corporate tax return | Investors who open an LLC in Canada are legally required to submit a corporate tax return, known as T2 Corporation Income Tax Return for each financial year of activity. |
| Deadline to submit tax returns | In maximum 6 months after the end of the financial year. |
| The financial year in Canada | In Canada, a financial year can be the calendar year (meaning, from the 1st of January to 31st of December), or a fiscal year. The latter refers to a 12 months period established by the company, which can be different than the calendar year. |
| VAT registration | VAT in Canada is comprised of the Goods and Services Tax/ Harmonized Sales Tax (GST/HST). Most companies need to register for the payment of this tax, as most goods and services are charged with it. The registration can be done on a voluntary or mandatory basis. |
| VAT registration threshold | Businessmen who will open an LLC in Canada must register for VAT on a mandatory basis if they have taxable sales of minimum $30,000. |
| Bank account requirements | LLCs registered in Canada must open a corporate bank account at a commercial bank operating in this country. |
| Is it possible to open the bank account online? (yes/no) | Yes |
| Can LLCs operate throught the services of a virtual office? (yes/no) | Yes |
Table of Contents
What are the main steps in opening an LLC in Canada in 2026?
There are several requirements that need to be respected upon the incorporation of an LLC in Canada:
- having a business address in the region (province) the company will operate;
- drafting the Articles of Association of the company;
- appointing the company officers;
- opening a bank account and depositing the share capital;
- submitting the documents for registration with the Trade Register;
- obtaining the tax identification code and GST number;
- applying for the necessary licenses before starting any activity.
What are the main characteristics of the LLC in Canada?
Some of the main characteristics of the Canadian LLCs are presented in the list below:
- the LLC in Canada is not recognized as a legal entity, its closest equivalent is the private corporation, which has the traditional characteristics of the LLC as it is known at a global level;
- from a taxation point of view, the owners of LLCs are taxed based on the corporate income statements;
- LLCs, however, offer limited liability to the shareholders;
- with the help of LLCs, investors can enter various agreements.
How can your consultants help me in opening an LLC in Canada in 2026?
Our teamoffers tailored solutions to all foreign investors who want to open a company in Canada. We provide a variety of legal services, required for all types of business purposes. However, in connection to company formation in Canada, you can rely on us for the following:
- consultancy services, during which we can present the formalities required for the incorporation of the LLC, its characteristics, and any other matter that you may be interested in;
- assistance in reserving a trade name;
- drafting the provisions for 3 classes of company shares;
- drafting and signing the company’s bylaws (Articles of Incorporation);
- preparing the corporate resolutions, the registries, the minutes book;
- addressing the Canada Revenue Agency for the issuance of a Business Number and tax registration.
What are the costs of starting an LLC in Canada in 2026?
The registration of this company type implies a variety of costs and fees. Regarding the fees associated with the incorporation, we mention that in 2026 the following apply:
- you will need to pay a governmental processing fee ranging from CAD200 to CAD600, depending on the province selected;
- the fee charged by our team for company formation services is CAD2,000 (it includes the services we have presented above);
- however, our fees can vary based on the types of services you require from us – for instance, if you want to benefit from accounting services and tax filing, our fees start from CAD3,500 (plus HST – the sales tax).
We recommend you get in touch with us so that we can provide you a personalized offer, suitable to your needs.
What are the registration options for LLCs in Canada?
Just like any other type of structure, the LLC can be registered at a federal, provincial or territorial levels.
In what Canadian regions can your team help me register an LLC?
Our team of specialists in company formation in Canada are located in Ontario, therefore you can rely on us for assistance in the registration of an LLC in this province. You can also address us if you want to incorporate in any of the following (we offer full legal support):
- British Columbia;
- Nova Scotia;
- Alberta;
- we provide full legal representation for federal registration as well.
Please mind that we can also facilitate the registration of an LLC in other Canadian provinces/ territories (we recommend you address us for more details about this topic).
In the infographic below, we invite businessmen who want to start a company in Canada in 2026 to find out the basic characteristics of a Canadian LLC:
How long does it take to register an LLC in Canada?
According to a report issued by the World Bank, the registration timeline for a company in Canada is as follows:
- in the case of federal registration, the procedure takes minimum 1 week to complete;
- if you opt for expedite registration (there is this possibility), the registration procedure can be completed in maximum 2 days;
- one must also consider the opening of the bank account which can take up to 1-2 weeks, depending on the rules and procedures of each bank;
- the business licenses can also take time, and thus the registration time can increase to 2 months.
Are there any GST/ HST registration obligations in Canada?
One of the main concerns of all investors who want toset up a company in Canada refers to the tax obligations arising from doing business in this country. Among the tax obligations commercial companies have is the registration for value added tax, which, in Canada, takes the form of the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST).
Below, you can find a short presentation on how to register a Canadian LLC:
Can you provide company formation services in other jurisdictions?
We can also help you if you need to open a company in another country, such as the USA.
We invite you to contact our team of specialists in company formation in Canada for further information on the incorporation requirements applicable to the LLC.