Can Non-Residents Form a Company in Canada? Absolutely! Nearly anyone can establish a company in Canada, regardless of citizenship or residency status (in certain cases). This article delves into the process for non-Canadians to incorporate a corporation in Canada, answering frequently asked questions and tackling common challenges.
Why Incorporate in Canada?
Canada’s reputation as a great place to live and do business is well-deserved. It offers a stable environment with a skilled workforce, making it attractive to successful foreign entrepreneurs. Here are some reasons to consider incorporating in Canada:
- Access new markets: Expand your existing product or service offerings to a new market.
- Immigration pathway: Explore opportunities to immigrate to Canada with your family through business ownership.
- Diversify assets: Geographically diversify your assets to mitigate risk from political or economic instability, or natural disasters.
- Unique trade and R&D: Take advantage of trade agreements and research & development opportunities specific to Canada.
- Fresh start: Sometimes, a change of scenery can be just what your business needs!
Minimum Requirements
The requirements to open a private company in Canada are minimal:
- Be 18 years of age or older.
- Be of sound mind.
- Not be bankrupt.
- Have a physical address in the province (or territory) where your head office is located
Canadian citizenship or residency is not required to form a private corporation. However, some jurisdictions may require at least 25% of directors to be resident Canadians. There’s also no minimum investment needed, though some immigration programs may have investment requirements. Finally, you don’t need to specify your business type at the outset – corporations can engage in a wide range of activities (except for a few protected industries). You can also change your business nature without government notification.
Steps Involved in Incorporation
Incorporating a company in Canada as a Non-Canadian resident involves several decisions and steps. Here’s a simplified overview:
- Where to incorporate: Choose to incorporate under the laws of a specific province/territory or federal laws. Factors to consider include your target market, existing business connections, desired location of residence, and director residency requirements. Popular options for non-residents with no residency requirements are Ontario, British Columbia, and New Brunswick.
- Name selection: Choose a unique name for your corporation and conduct a NUANS name search to ensure availability.
- Company structure: Decide who will fill the roles of shareholder(s), director(s), and officer(s). In most small businesses, one person can handle all three roles. Complex structures with multiple shareholders and classes of shares are also an option.
Beyond these decisions, the incorporation process involves several steps:
- Name search and reservation
- Incorporation application
- Initial return filing or extra-provincial registration filing (depending on jurisdiction)
- Organizing resolutions of directors and shareholders (including creating by-laws and initial share subscriptions)
- Creation of a minute book containing all generated documents and records of shareholders, directors, officers, and issued shares
While these steps may seem complex, you don’t have to go it alone. Companies like CFS Canada can streamline the incorporation process for you, making it fast and easy.
Common Challenges for Non-Residents
- Opening a bank account: Canadian banks have strict Know Your Client (KYC) and Anti-Money Laundering (AML) requirements. Opening an account can be challenging for non-residents without a physical presence or valid work visa in Canada.
- Getting credit: Building business credit in Canada can be difficult for non-residents, as Canadian banks heavily rely on Canadian credit history. You may need to self-finance initially or explore private lenders (proceed with caution due to potential scams).
- Bookkeeping and tax filings: Maintaining accurate records and meeting tax filing deadlines requires knowledge of intricate Canadian regulations. Consider hiring a local bookkeeper or accountant for assistance.
- Legal administration: Similar to bookkeeping, legal administration involves adhering to complex rules and deadlines. The Tobuso platform can help with some common legal administration tasks.
Immigration for Business Owners
If immigrating to Canada is a goal, there are business-focused immigration programs available.
Incorporating your business in Canada can open up new opportunities and markets for your company. Our Canada Business Incorporation Service for global entrepreneurs is designed to make this process as seamless and efficient as possible. With an all-inclusive package priced at just USD $1970, you can benefit from a comprehensive range of services that cover every aspect of the incorporation process.
Don’t let the complexities of international business incorporation hold you back. Contact us today to get started on your journey to establishing a successful business presence in Canada. With our expert guidance and support, you can achieve your business goals and take advantage of the many benefits that Canada has to offer.
Are you ready to take the next step towards your entrepreneurial journey in Canada? If you’re looking for more tailored information or have specific questions about the immigration process, we’re here to help. Complete the form below to request more information and let us assist you in making your Canadian business dreams a reality.
If you have any general questions, feedback or other inquiries, contact us and a customer service representative will gladly assist you.
