The competitiveness and the highly developed economy of Canada are the testimony of a friendly and open market where entrepreneurs worldwide can activate in varied areas of business, considering a multitude of advantages adapted to the market’s requirements and needs.
Investors from abroad can establish several business forms like corporations, partnerships, co-operatives, or sole proprietorships. For each kind of entity, varied conditions and requirements are imposed, in accordance with the Commercial and Civil Laws in Canada.
The following types of entities for starting a business in Canada are:
Foreign companies can register branches, representative offices, and subsidiaries in this country and our specialists in company incorporation in Canada can offer help with the local procedures.
Two or more individuals can establish a partnership in Canada, which is considered a non-incorporated business, where the financial resources are combined and invested in the company or business. In accordance, the profits of the firm are shared as established in an agreed contract signed when the partnership was settled. In general partnerships in Canada, partners are subject to legally responsible debt payments, compared to the limited partnerships where an individual can underwrite a business without being part of its actions. The main benefits of setting a partnership as part of company incorporation in Canada are the low costs, tax advantages, and the equal share of the profits at a certain point.
A corporation is also a suitable business option in Canada, considering the legal aspects and the requirements in this matter. For instance, the stockholder of such an entity is not responsible for the company’s debts or any kind of obligations. Also, starting a company in Canada in the form of a corporation will be subject to a particular tax system and the business owner can have several advantages. One should know that the ownership of a corporation in Canada is transferable, and the formation of the company is made at a federal or territorial level. For any kind of incorporation in Canada, we remind you that our company formation agents in Canada are at your disposal with comprehensive information about the registration process and the steps to consider when drafting the documents with the authorities in charge of business registration.
The profit distribution, the limited liability, and full control of the activities are among the attributes of a co-operative in Canada. The association of members of a co-operative oversees its activities and such a business entity can be set up as a for-profit or not-for-profit body. Even if it’s not the main selection when establishing a company, investors can choose this kind of entity if there is a need for gathering resources and providing access to mutual needs under the initial project. Please consider that at any time, an individual can change the business structure and adopt a new one if the plans have reformed or the improvements demand such transformation. For details about this and the procedures for company incorporation in Canada, you may contact our specialists.
Foreign companies are drawn by the Canadian developed industries, such as manufacturing, energy, and pharmaceutics which is why they are interested in establishing their presence on the local market. A subsidiary company can be a good idea for an international company interested in company incorporation in Canada.
The subsidiary company must follow the same legislation as local companies considering it will be registered as a corporation in Canada. The parent company must prepare the same set of documents as when registering a local business. Moreover, the Canadian subsidiary can be registered at a federal or regional level.
The following documents must be prepared for starting a business in Canada in the form of a subsidiary:
It should be noted that each province has its own regulations related to the creation of subsidiary companies. Another interesting fact about Canada is that several types of subsidiaries can be established here.
Foreign companies seeking to control the Canadian entity can set up branch offices. This business form will follow the same registration requirements as the subsidiary and can also be established at a federal or provincial level. Foreign companies registering branches in Canada use these entities for specific projects which usually have a limited period.
With respect to the documents needed to open a branch office in Canada, these are the same as for a subsidiary company, however, the parent company must also appoint a secretary.
Companies can be registered if the following documents are provided to the local institutions during the process of starting a business in Canada:
Once the company incorporation process in Canada has successfully ended, the business owner or his/her representative must apply for special licenses and permits, to start the activities. Besides legal support for your future company, suitable guidance when registering a business in Canada will be offered by our Canadian specialists in company incorporation.
1. Can a non-resident person start a company in Canada?
Yes, foreign citizens or investors are welcome to open companies in Canada under the same conditions as locals.
2. Do I need a residence permit if I want to start a company in Canada?
In most cases, a residence permit is necessary for foreign citizens starting a business in Canada.
3. What are the steps for company incorporation in Canada?
The first step related to opening a company in Canada is related to choosing a company name. Following that, the incorporation papers must be prepared and filed with the Trade Register. Then, special licenses or permits must be obtained. Our company formation agents in Canada can assist with the registration process of a business.
4. What types of companies can I open in Canada?
One can open several types of companies in Canada, however, the most common one is the corporation. The Canadian corporation is the equivalent of a limited liability company.
5. Does the company have to be registered in Canada?
Yes, to be considered a resident company, a business must have a registered address in Canada. The company seat may be registered in one of the Canadian provinces.
6. How fast can I incorporate a company in Canada?
The company registration procedure is not lengthy in Canada. However, the investor must pay attention to all the steps and follow the exact steps prescribed by the Commercial Code. Our company registration consultants in Canada can explain these steps.
7. What is the minimum share capital in Canada?
The Commercial Law does not impose a minimum share capital for the registration of a company. However, the company will need working capital.
8. What are the taxes that I have to pay in Canada?
The taxation system in Canada is imposed at the federal and territorial levels. The rates also differ and are applied for different thresholds of income, which is why accounting services are recommended.
9. How can I open a Canadian bank account?
Foreign citizens have the right to open bank accounts in Canada, no matter if they are unemployed or employed. Also, companies must open corporate bank accounts where the share capital must be deposited. Our local advisors can offer information on the documents required to open a bank account.
10. Do I need special permits and licenses in Canada?
Yes, depending on the activities a company will undertake, special licenses will be required.
For further information about company incorporation in Canada, we invite you to contact our team of experts. The requirements for starting a business in Canada can be explained by our team of Canadian company formation specialists who can also help you when drafting the documents with the authorities in charge. You can contact us for details about the procedures for company incorporation in Canada. Filing Taxes is an accounting firm that has its own physical offices, but we also provide accounting & bookkeeping services on a virtual platform. Feel free to contact us through our website filingtaxes.ca or reach out at 416-479-8532. Schedule your tax preparation appointment with us and take the first step towards proper management of your finances. Our professional personal tax accountants will make sure to get you the maximum tax refund on your personal tax return.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.