The registration of a Branch in Canada permits foreign corporations to operate and o business in Canada. The registration of a branch in Canada is done by filing an extra-provincial registration application in the province or provinces in which the foreign business proposes to operate. The foreign company will need to register extra provincially in each of the provinces where it intendeds to operate and do business.
In order for a foreign company to register a branch in Canada, a registered Canadian address and a Canadian resident attorney/agent for service are required, so that the corporation has local representation in order to receive the service of documents and to deal with the corporate registry matters locally.
Company Formations Canada offers registered Canada registered agent service and office services throughout all Canada.
Tax Implications of registering your foreign company in Canada as a Branch
- Income resulting from Canadian operations is taxable in Canada.
- When computing taxes in the country of residence, losses may be offset against income. Losses may be carried back 3 years and carried forward 7 years against income earned in Canada by the Canadian branch.
- Branch tax is normally payable annually on any after-tax profit not reinvested in Canadian property.
- If the branch is taxable, foreign jurisdictions may give credit for Canadian income and branch taxes paid.
- Branch tax which was previously deferred is payable upon the discontinuance of business, except for dividends on certain reorganizations that involve the formation of a Canadian subsidiary.
- Licensing fees must be paid in provinces where a branch is established and the corporation operates. Apart from extra-provincial registration fees, no incorporation fees need to be paid.
- Rules for allocating income may vary by jurisdiction, creating problems that affect tax credits
- Interest, royalties and like expenses which are paid to non-Canadian residents and are deducted when determining Canadian branch profits may be subject to a withholding tax (unless reduced by treaty)
- The depreciation of fixed assets is calculated at Canadian rates in order to determine Canadian taxable income. Foreign rates may govern in the foreign jurisdiction. This may create timing issues or other problems with claiming credit for Canadian taxes paid.
Company formations offer fast & easy Canada company registration for foreign companies wishing to operate an do business in Canada. The total fees for the registration of a branch in Canada are $2200 CAD.
Information and documents needed:
The information and documents required to register a foreign company in Canada as a branch are:
- Company name
- Company Address
- Jurisdiction of Incorporation
- Date of Incorporation
- Names and addresses of the directors of the corporation
- Copy of the certificate of incorporation
- Copy of the articles of incorporation
- Certificate of Good Standing
The total fees for the registration of a branch in Canada are $2200 CAD
What our Canada Branch Registration Service Includes:
- Provincial name search report or NUANS Report request
- Preparation of the extra-provincial registration application
- Provincial Registered agent service for 1 year
- Filing of your extra-provincial registration application
- Government fees
- Taxes
