Canada is an excellent jurisdiction for foreign investment and for doing business due to the strong and well-regulated banking system, relatively low corporate tax rates, well-educated work force and minimum red tape. Canada was ranked the best country in the world to do business in by Forbes in 2011 and 2012. We can assist you to register a company in the provinces of British Columbia, Ontario, New Brunswick and also to register a federal Canadian company. The requirements to register a company in Canada will depend on which province you select, please contact us before ordering your Canadian company for consultation.
Starting Business in Canada
Starting business in Canada even if you are not living in Canada
In case you are not immigrating to Canada and are not a Canadian citizen, you could still need to do a company registration in Canada. It’s imperative to understand that the rules regarding who is allowed and who isn’t allowed to start some types of businesses is decided by Canada’s individual provinces and it is different for each province or territory.
For instance, as of now, the province of British Columbia (B.C.) has the most flexible rules for non-resident businesses. In that province, anyone is allowed to establish a sole proprietorship, corporation or partnership whether they’re a Canadian citizen or not.
For setting up your start-up in Canada or specifically in B.C., you would be required to:
– Have an office or physical address for your company.
– Have an appropriate work permit from Citizenship and Immigration Canada.
– Submit an Investment Canada application. (The Investment Canada Act says that “non-Canadians who acquire control of an existing Canadian business or who wish to establish a new unrelated Canadian business are subject to this Act, and they must submit either a Notification or an Application for Review.”)
– If you wish to set up your business in any other province, you would need to check on their specific requirements. If they do not permit non Canadians to set up the type of business you are planning, then you could think of setting up a corporation or a partnership with one or more Canadian citizens or some landed immigrants.
If as a non-Canadian, you want to register a small business in Ontario or you are starting a partnership with some other person, that other individual should be a Canadian citizen or some landed immigrant.
But in case you want to register a corporation in Ontario, Canada, as per the Canada Business Corporations Act:
At least 25 percent of the total number of directors should be resident Canadians (if 25 percent of the directors is not a whole number, then you could round up to the nearest number). If a corporation has less than four directors, then at least one of them should be a resident Canadian (S. 118(3)).
If you set up a company in partnership in Canada, then you would have to register your partnership in the province where you are going to do your business. However, if you are setting up a corporation, then you would first need to choose if you would incorporate your business federally or provincially.
Types of Business Entities for Incorporation in Canada
In case you are not immigrating to Canada and are not a Canadian citizen, you could still need to do a company registration in Canada. It’s imperative to understand that the rules regarding who is allowed and who isn’t allowed to start some types of businesses is decided by Canada’s individual provinces and it is different for each province or territory.
For instance, as of now, the province of British Columbia (B.C.) has the most flexible rules for non-resident businesses. In that province, anyone is allowed to establish a sole proprietorship, corporation or partnership whether they’re a Canadian citizen or not.
For setting up your start-up in Canada or specifically in B.C., you would be required to:
– Have an office or physical address for your company.
– Have an appropriate work permit from Citizenship and Immigration Canada.
– Submit an Investment Canada application. (The Investment Canada Act says that “non-Canadians who acquire control of an existing Canadian business or who wish to establish a new unrelated Canadian business are subject to this Act, and they must submit either a Notification or an Application for Review.”)
– If you wish to set up your business in any other province, you would need to check on their specific requirements. If they do not permit non-Canadians to set up the type of business you are planning, then you could think of setting up a corporation or a partnership with one or more Canadian citizens or some landed immigrants.
If as a non-Canadian, you want to register a small business in Ontario or you are starting a partnership with some other person, that other individual should be a Canadian citizen or some landed immigrant.
But in case you want to register a corporation in Ontario, Canada, as per the Canada Business Corporations Act:
At least 25 percent of the total number of directors should be resident Canadians (if 25 percent of the directors is not a whole number, then you could round up to the nearest number). If a corporation has less than four directors, then at least one of them should be a resident Canadian (S. 118(3)).
If you set up a company in partnership in Canada, then you would have to register your partnership in the province where you are going to do your business. However, if you are setting up a corporation, then you would first need to choose if you would incorporate your business federally or provincially.
Tax Registration and Filing in Canada
Registration for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST):
In case your new business’s gross income crosses $30,000, you would need to register for GST and HST. Even if your company is not making a lot of money to start with, you could still register for GST or HST in the beginning because of Input Tax Credits, which helps you get back the GST or HST that your business has paid while making purchases for business.
Register for Provincial Sales Tax (PST)
Some provinces have still not synchronised their sales taxes with the federal GST or goods and services tax; so in those particular provinces, you would need to register to collect and then remit the right provincial tax.
But if you are setting up your business in Manitoba, British Columbia, or Saskatchewan, then you would need to register as a collector of PST or provincial sales tax. In case you are establishing a business in Quebec, then you would have to register for Quebec Sales Tax (QST).
How we can help you
If you are considering forming a business or you need expert help with company registration in Canada, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Canada or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at legal@7geniusgroup.com