Overview of Company Registration in Canada
Canada offers a stable economy, low corporate tax rates, and a welcoming environment for foreign investors. Registering a company in Canada allows you to access the vast North American market, including the USA and Mexico, thanks to trade agreements like CUSMA.
You can incorporate federally (allowing you to operate nationwide) or provincially (specific to a province like Ontario or British Columbia).
Benefits of Registering a Company in Canada
- Strong Economy: Canada has one of the most stable banking systems and economies in the world.
- Low Taxes: Competitive corporate tax rates, especially for small businesses (approx. 9% federal tax on first $500k active income).
- Global Trade: Duty-free access to the US and Mexican markets under CUSMA.
- Skilled Workforce: Access to a highly educated and multicultural talent pool.
- Limited Liability: Protects your personal assets from business debts.
Types of Business Structures
- Corporation: A separate legal entity. The most common choice for foreign investors due to limited liability.
- Branch Office: An extension of a foreign parent company. Not a separate legal entity; the parent company is liable.
- Partnership: Business owned by two or more people. Partners share profits and liabilities.
- Sole Proprietorship: Owned by one person. Unlimited personal liability. (Generally not recommended for non-residents).
Eligibility & Residency Requirements
Federal Incorporation: Requires at least 25% of directors to be Canadian residents.
Provincial Incorporation: Several provinces do not have Canadian residency requirements for directors, making them ideal for Indian entrepreneurs. These include:
- British Columbia
- Ontario
- Alberta
- New Brunswick
We help you choose the right jurisdiction based on your residency status.
Documents Required
- Passport: Notarized copy for all directors and shareholders.
- Address Proof: Utility bill or bank statement (less than 3 months old).
- Proposed Name: 3-4 options for the company name.
- Articles of Incorporation: Drafting provided by us.
- Registered Office Address: A physical address in the province of incorporation (Virtual office allowed).
Registration Process
- Name Search (NUANS): We conduct a name search to ensure your business name is unique and available.
- Jurisdiction Selection: We advise on whether to incorporate federally or provincially based on your needs.
- Filing Articles: We prepare and file the Articles of Incorporation with the government registry.
- Business Number (BN): Upon incorporation, we obtain your Business Number from the Canada Revenue Agency (CRA).
- Minute Book: We prepare the corporate minute book containing bylaws, resolutions, and share certificates.
Fees & Costs
Costs vary by jurisdiction:
- Federal Incorporation: Govt fee approx. $200 CAD + NUANS report ($20-$50).
- Provincial Incorporation:
- Ontario: ~$300 CAD
- British Columbia: ~$350 CAD
- Alberta: ~$450 CAD
Note: Professional fees for registered agent and address services are additional.
