Founding a Company in Canada
Starting a business in Canada varies by province and territory due to differing rules and registration fees. Businesses can register provincially to operate within a specific province or federally to operate across Canada with enhanced name protection and distinct annual filing requirements. Even with federal registration, extra-provincial registration may be needed in each province where the business operates, sometimes requiring a local Agent for Service.
Three Ways to Start a Business in Canada
Expand an Existing Business
Open an office or subsidiary of an established business. This requires the involvement of a Canadian citizen or permanent resident and registration as an extra-provincial corporation in each province of operation, often necessitating a local Agent for Service.
Start a Business from Abroad
Non-residents can establish a business without moving to Canada, provided there is a Canadian company director and local agent for incorporation. Provincial rules vary, with British Columbia allowing 100% foreign ownership in some cases.
Immigrate to Canada and Start a Business
Through the Start-Up Visa Program, entrepreneurs can launch innovative businesses that create Canadian jobs and compete globally. This program requires language proficiency, financial stability, and support from designated organizations. Alternatively, the Self-employed Persons Program supports individuals in arts, entertainment, or sports who have relevant experience and aim to contribute to Canadian culture or athletics.
How is a Company Incorporated and How Long Does the Process Take?
Canada’s stable economy, robust legal system, and supportive business climate make it a prime choice for entrepreneurs. Incorporating a company in Canada generally takes a few days to several weeks, depending on the province or territory and the registration process’s efficiency.
Step 1: Name the Corporation
Corporate Name Options include word names, consisting of letters and symbols, granting the legal right to use the name across Canada, or numbered names, which are the simplest option (e.g., 12345678 Canada Inc.), with a different name permissible for business purposes.
Step 2: Create Articles of Incorporation
Basic Incorporation is suitable for small, private businesses, including pre-determined articles of incorporation, up to two classes of shares, a maximum of 10 directors, and an assigned numbered name. Custom Incorporation allows the specification of the corporate name, share structure, number of directors, business restrictions, and other provisions. Articles can be in English, French, or bilingual.
Step 3: Establish the Initial Registered Office Address and First Board of Directors
The registered office serves as the location for corporate records and receiving official documents. The board of directors must meet eligibility criteria and disclose each director’s name, address, and Canadian residency status.
Step 4: File Information on Individuals with Significant Control
Ownership disclosure involves filing details about individuals who own and control the business.
Step 5: Submit and Pay the Fee
Online submission is the fastest and simplest method, processed through the Online Filing Centre.
