Why Global Entrepreneurs Are Choosing Canada
Canada has become one of the most attractive destinations for entrepreneurs and investors seeking to establish new companies abroad. Known for its economic stability, transparent legal system, and access to global markets, Canada offers a pro-business environment supported by strong intellectual-property laws, modern infrastructure, and a highly skilled workforce.
However, one question arises repeatedly from international entrepreneurs: Can a non-resident register a company in Canada?
The short answer is yes — but with important legal and practical considerations depending on the province, company structure, and your long-term goals.
This guide by CFS Canada (www.companyformations.ca) provides a detailed overview of the options, requirements, and processes for non-residents who want to register and operate a Canadian company — whether to sell internationally, open a local branch, or expand into North America.
1. Understanding Canada’s Business Structures
Before diving into residency requirements, it’s essential to understand the types of business entities available in Canada. Each structure comes with its own legal and tax implications.
1.1 Sole Proprietorship
A sole proprietorship is the simplest form of business — owned and operated by one individual. However, this structure requires the owner to be a Canadian resident in most provinces, which makes it unsuitable for non-residents.
1.2 Partnership
Partnerships involve two or more individuals or entities conducting business together.
While a non-resident can be a partner in a Canadian partnership, at least one of the partners should generally be a Canadian resident or a registered Canadian entity to handle tax filings and business operations domestically.
1.3 Corporation (Limited Company)
For non-residents, the corporation is the most common and practical option.
It’s a separate legal entity that can own property, enter contracts, open bank accounts, and pay taxes in its own name. Most importantly, a corporation limits your personal liability and allows foreign individuals or companies to hold ownership.
This is why incorporating a Canadian corporation — either federally or provincially — is the preferred path for most international entrepreneurs.
2. Federal vs. Provincial Incorporation
When registering a company in Canada, you can choose to incorporate federally under the Canada Business Corporations Act (CBCA) or provincially in one of the 13 provinces and territories.
Each option has different requirements, benefits, and residency rules.
2.1 Federal Incorporation
A federal corporation allows you to operate your business under the same name across all provinces and territories in Canada.
However, under the CBCA, at least 25% of the directors must be Canadian residents.
If your board of directors has fewer than four people, at least one must be a Canadian resident.
This rule often leads non-residents to consider provincial incorporation in more flexible jurisdictions, where local-resident director requirements do not apply.
2.2 Provincial Incorporation
Each province has its own business corporations act and incorporation process.
Several provinces are particularly favorable for non-resident entrepreneurs because they do not require a Canadian resident director.
These include:
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British Columbia
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New Brunswick
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Nova Scotia
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Prince Edward Island
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Yukon
In these provinces, a 100% foreign-owned company is legally allowed, making them excellent choices for international entrepreneurs looking to register a company remotely.
3. Popular Provinces for Non-Resident Incorporation
3.1 British Columbia (BC)
BC is the most popular province for non-resident incorporations due to its flexibility and modern digital systems.
Non-residents can incorporate online, own 100% of the shares, and act as the sole director of the company — no Canadian residency requirement.
Other advantages include:
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Fast online incorporation (often same-day service)
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Simple annual reporting
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Easy access to virtual address and registered-agent services
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Highly respected international reputation for compliance and credibility
3.2 New Brunswick
New Brunswick is also favorable for foreign owners. It allows full non-resident ownership and requires only that the company appoint a registered office address within the province.
3.3 Alberta and Ontario
Alberta and Ontario are major economic centers with significant business advantages, but both require at least 25% of directors to be Canadian residents.
However, foreign entrepreneurs can still incorporate through nominee director services or appoint a local representative while retaining full ownership of the company shares.
4. Step-by-Step: How a Non-Resident Can Register a Company in Canada
Registering a company in Canada as a non-resident is straightforward when guided by experts. Here’s the general process followed by CFS Canada (www.companyformations.ca) for global entrepreneurs.
Step 1: Choose Your Province and Business Name
The first step is to decide where to incorporate based on your business goals and director residency flexibility.
You’ll also need to choose a unique company name (which can be verified through a NUANS name search) or opt for a numbered company (e.g., 1234567 BC Ltd.).
Step 2: Prepare Incorporation Documents
These include:
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Articles of Incorporation
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Notice of Registered Office
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Notice of Directors
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Share structure and company bylaws
At this stage, our team ensures that your documents comply with provincial or federal requirements and are filed correctly.
Step 3: Appoint a Registered Office and Agent
Every Canadian corporation must have a registered office address within the province of incorporation.
This is where official documents and government correspondence are sent.
As a non-resident, you can use CFS Canada’s Registered Agent Service, which provides a local registered address, mail handling, and document forwarding.
Step 4: Appoint Directors and Shareholders
Non-residents can act as directors in provinces that allow it (e.g., British Columbia, New Brunswick).
You can also be the sole shareholder, owning 100% of the company shares, even as a foreign individual or corporation.
Step 5: File Incorporation and Obtain the Certificate
Once documents are prepared and filed, you’ll receive your Certificate of Incorporation, officially recognizing your new Canadian company.
Step 6: Obtain a Business Number (BN) and CRA Accounts
After incorporation, you must register your company with the Canada Revenue Agency (CRA) to obtain:
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Business Number (BN)
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Corporate Income Tax Account
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GST/HST Account
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Payroll Account (if hiring staff)
CFS Canada can handle this registration on your behalf to ensure compliance from day one.
Step 7: Open a Corporate Bank Account
You can open a Canadian business bank account with most major banks, though each bank has its own requirements.
Some banks may require a personal visit, while others allow remote or digital onboarding if you provide notarized identification and incorporation documents.
We guide our clients through this process, including preparing the proper documents and introducing partner banks when necessary.
Step 8: Maintain Annual Compliance
Corporations must file annual returns, update corporate records, and maintain minute books.
CFS Canada provides Annual Corporate Maintenance Services, ensuring your company remains in good standing and fully compliant with Canadian corporate laws.
5. Tax Considerations for Non-Resident Corporations
Understanding taxation is critical when registering a company in Canada as a non-resident.
Canada has federal and provincial corporate tax rates, and the amount of tax you pay depends on whether your company is considered a Canadian resident for tax purposes and where business activities occur.
5.1 Canadian-Source Income
If your company earns income from Canadian sources, it must file a corporate tax return (T2) and pay taxes on that income, even if the shareholders are non-residents.
5.2 Foreign-Source Income
If your Canadian corporation earns income outside Canada, you may be eligible for foreign tax credits or lower taxable obligations, depending on your country’s tax treaty with Canada.
5.3 Double Taxation Treaties
Canada has tax treaties with over 90 countries to prevent double taxation.
These treaties help non-residents avoid paying taxes twice — once in Canada and again in their home country.
5.4 Withholding Taxes
If your company pays dividends, interest, or royalties to foreign shareholders, withholding taxes may apply.
CFS Canada assists clients in understanding and planning for these obligations, ensuring compliance while optimizing your tax structure.
6. Advantages of Registering a Company in Canada as a Non-Resident
Despite the regulations, Canada remains one of the best jurisdictions in the world for foreign entrepreneurs.
Here are the key benefits:
6.1 Global Credibility
A Canadian corporation enhances your brand’s trust and reputation in global markets.
It signals transparency, stability, and adherence to internationally respected standards.
6.2 Full Ownership and Control
In several provinces, you can own 100% of the shares and serve as the sole director — even if you live abroad.
6.3 Access to North American Markets
Incorporating in Canada gives you access to the U.S. and Mexico through the Canada-United States-Mexico Agreement (CUSMA), opening trade opportunities across North America.
6.4 Banking and Payment Systems
Canadian corporations can easily integrate with global payment gateways, merchant accounts, and online banking systems — crucial for e-commerce, SaaS, and international trade businesses.
6.5 Transparent Legal and Tax Systems
Canada’s rule of law, independent courts, and clear corporate regulations make it one of the safest jurisdictions for foreign investment.
7. Common Challenges and How to Overcome Them
While incorporating as a non-resident is possible, entrepreneurs may face some challenges.
Here’s how to address them effectively:
7.1 Director Residency Requirement
If incorporating in provinces that require Canadian resident directors (like Ontario or Alberta), you can:
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Incorporate in British Columbia or New Brunswick, or
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Use Nominee Director Services through CFS Canada.
7.2 Banking Restrictions
Some banks require in-person verification.
Solution: Work with banks experienced in non-resident accounts or use FinTech alternatives like Wise Business or Payoneer.
7.3 Address Requirement
A physical registered office is mandatory.
Solution: CFS Canada provides registered-office and mail-forwarding services in multiple provinces.
7.4 Ongoing Compliance
Corporations must file annual returns and maintain records.
Solution: Our Corporate Maintenance Program handles all filings, minute books, and compliance updates on your behalf.
8. Essential Documents You’ll Need
To register your company as a non-resident, prepare the following:
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Passport or government-issued ID
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Proof of residential address (utility bill or bank statement)
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Chosen company name and NUANS report (if applicable)
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Shareholder and director details
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Incorporation information form
Our incorporation specialists will assist in preparing, notarizing, and filing all documents efficiently.
9. Frequently Asked Questions (FAQ)
❓ Can I open a company in Canada without visiting?
Yes. Non-residents can complete the incorporation 100% online through CFS Canada, including name registration, document filing, and registered-agent services.
❓ Can I open a bank account remotely?
Some banks require an in-person visit, but CFS Canada can refer you to financial institutions and digital banking partners that allow remote verification.
❓ Do I need a visa or immigration status to own a company in Canada?
No. You do not need a visa or immigration status to own shares or be a director in a Canadian company.
❓ Can my foreign company own a Canadian company?
Yes. A foreign corporation can be the parent or holding company of a Canadian subsidiary.
❓ What about taxes?
Corporate taxes depend on where income is generated. CFS Canada can help set up CRA accounts, ensure compliance, and connect you with Canadian accountants for ongoing tax support.
10. How CFS Canada Helps Non-Residents Incorporate in Canada
CFS Canada specializes in helping global entrepreneurs, investors, and companies incorporate seamlessly in Canada.
Through our all-inclusive incorporation services, we handle everything from name registration to annual compliance.
Our Services Include:
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Federal and Provincial Incorporation
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NUANS Name Search and Reservation
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Registered Office and Agent Services
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CRA Business Number Registration
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Minute Book and Corporate Records
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Annual Return Filings
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Nominee Director and Virtual Office Services
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Banking Guidance and Support
Our process is simple, fast, and compliant with all Canadian corporate laws.
✅ Conclusion: Incorporating in Canada as a Non-Resident Is 100% Possible
Canada welcomes entrepreneurs from all over the world.
Whether you’re launching a new venture, expanding globally, or establishing a North American presence, you can register and own a company in Canada even as a non-resident — fully online and without immigration status.
With the right guidance and professional support, the process is straightforward, secure, and rewarding.
CFS Canada has helped thousands of entrepreneurs incorporate successfully and maintain their companies in good standing.
Start Your Canadian Incorporation Today
Ready to register your company in Canada as a non-resident?
Visit: www.companyformations.ca
Email: [email protected]
At CFS Canada, we make incorporation simple, fast, and fully compliant.
From name search to tax registration, our experts handle every step — so you can focus on growing your global business with confidence.
Incorporate your Canadian company today — wherever you are in the world. Contact us using the form below:
If you have any general questions, feedback or other inquiries, contact us and a customer service representative will gladly assist you.
