Things to Know
A Canadian subsidiary can be funded either internally (e.g., by its shareholders or partners) or externally (e.g., financial institutions, banks, private investors or venture capital firms)
Unlike the United States, Canada does not have a single federal securities regulator. Each of the Canadian provinces and territories have enacted laws that govern securities transactions, and each has established a securities commission or similar securities regulatory authority.
There is no minimum capitalization requirement in Canada, which means that there is no minimum amount of equity which needs to be contributed to a corporate subsidiary upon formation.
Canadian banks will require extensive documentation in order to set up the bank account including identification, proof of ownership and incorporation documents. Assembling these documents can be cumbersome so be sure to provide enough lead time for completing this step.
Things to Do
DETERMINE THE METHOD OF FINANCING
Consider whether to raise funds by issuing equity or debt or arranging for a loan or line of credit — where necessary, engage local counsel to advise on the chosen transaction and prepare the required documentation.
Consult with your Canadian tax advisor at the outset to ensure all financial arrangements are made on a the tax-efficient basis.
FIND A BANK IN CANADA
Consider leveraging the business’ relationship with its current foreign bank (if it has relationships with banks located in Canada), or consult local advisors for recommendations.
Canada Company Registration
Company Formations Canada offers fast and easy company registration in Canada for non-Canadian residents and foreign companies wishing to operate and do business in Canada.
Register a new company in Canada as a non-Canadian resident
Register a foreign company in Canada
Canada Registered agent services for foreign companies and non-Canadian residents.
Canada Nominee director services for foreign companies and non-Canadian residents.
Shared from: Osler, Hoskin & Harcourt llp Publication