- Knowledge
Advantages of Canadian company registration
1. Tax incentives
The federal tax rate is 15% (the small business tax rate is 9%), and each province provides additional exemptions (such as the BC small business tax rate of 2%).
R&D expenses can enjoy SR&ED tax credits (up to 35% rebate).
2. Market potential
Joining the USMCA provides seamless access to the North American market (with a GDP exceeding $25 trillion).
A multicultural society with a wide range of consumer demands, suitable for multiple industries such as technology, energy, and agriculture.
3. The company has a high reputation
Canadian companies are known for their legal transparency and high compliance, making them easily trusted by international clients and investors.
4. Flexible company structure
Allow non residents to hold 100% of the shares without the need for local directors (excluding federal companies), and support remote registration.
1、 Types of Canadian Companies
01. Federal Corporation
Characteristics and Applicable Scenarios
-Can operate throughout Canada, with nationwide protected names
-At least one Canadian resident director is required
-Suitable for cross provincial or international business
02. Provincial Corporation
Characteristics and Applicable Scenarios
-Limited to intra provincial operations, with lower costs (such as an Ontario registration fee of approximately $300 CAD)
-Different provinces have different requirements (e.g. BC province does not require resident directors)
03. Sole Proprietorship
Characteristics and Applicable Scenarios:
-Individual unlimited liability, easy registration
-Suitable for freelancers or small and micro entrepreneurship projects
04. Partnership Enterprise
Characteristics and Applicable Scenarios:
-Combination of general partners (unlimited liability) and limited partners (limited liability)
-Suitable for family businesses or professional service organizations
05. Non Profit Organizations
Characteristics and Applicable Scenarios
-To enjoy tax-free treatment, registration under the Canadian Non Profit Companies Act is required
-Suitable for social fields such as charity and education
2、 Core Requirements for Canadian Company Registration
01. Basic requirements
1. Company name: Must be searched for by NUANS name (federal company) or approved by provincial name to ensure uniqueness.
2. Registered address: Actual address in Canada (can be affiliated with an agent), used to receive government letters.
3. Directors and Shareholders:
Federal companies require at least one Canadian resident director, while provincial companies vary depending on the province (if there are no restrictions in British Columbia).
Allow non resident shareholders with no upper limit on the number of shareholders.
02. Registered capital
There is no minimum paid up capital requirement, and the default is 1 CAD per share. The share structure can be flexibly set.
3、 Canadian company registration materials
（1） Certificate of Approval for Company Name
(NUANS report or provincial name pre-approval).
（2） Articles of Association
Including company name, share structure, business scope, etc.
（3） Director and shareholder information
Copy of ID card/passport (notarized for non residents).
Proof of address (water and electricity bills or bank statements from the past 3 months).
（4） Proof of Registered Address
Lease contract or address confirmation letter provided by the agency.
（5） Other documents
Federal companies are required to submit Form 1: Initial List of Directors.
Provincial companies are required to fill out a provincial application form (such as Ontario Form 1).
4、 Canadian company registration process
Step 1: Name search (2-3 days)
Federal company: Submit name search through the NUANS system (cost approximately 30-50 CAD).
Provincial companies: Some provinces allow direct registration of numbered companies (such as "123456 Canada Ltd.").
Step 2: Prepare and submit the application (1-2 weeks)
Federal Corporation: Submit an electronic application through the Canadian government's online portal (fee of CAD 200).
Provincial company: submitted through the provincial registry (e.g. BC registration fee of CAD 350).
Step 3: Obtain a business license
Received the Certificate of Inclusion after approval.
Step 4: Tax Registration
Apply to the Canada Revenue Agency (CRA) for a Business Number (BN), GST/HST tax number, and payroll account (if there are employees).
Step 5: Open a bank account
Provide company documents and director credentials, and open a commercial bank account (some banks support remote account opening).
5、 Notes on Canadian Company Registration
1. Annual Compliance
Federal companies: Submit an Annual Return annually, with a maximum penalty of CAD 5000 for late submission.
Provincial companies: The annual audit requirements vary from province to province (such as Ontario requiring updates every 1-2 years).
2. Tax declaration
Corporate income tax is declared on a fiscal year basis, while GST/HST is declared quarterly or annually.
3. File Update
Changes in directors, addresses, or articles of association must be reported to the registration office within 15 days.
4. Cross provincial operation
Federal companies need to apply for "Extra Provincial Registration" in the target province.
6、 Common Problems in Canadian Company Registration
Can non residents register Canadian companies?
sure! But federal companies require at least one Canadian resident director, while provincial companies depend on the province (such as British Columbia allowing non resident directors).
How long does it take to register a company?
Federal companies: 1-2 weeks for electronic applications and 4-6 weeks for paper applications.
Provincial company: The fastest in British Columbia is 1 day, and in Ontario it takes about 5 working days.
Do we need to conduct on-site operations?
No need, pure offshore operation is allowed, but a local registered address is required.
How to choose between federal or provincial companies?
If the business covers the whole country or plans to go public, choose a federal company; If cost sensitive and focused on the local market, choose a provincial company.
