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Setting up a company in Canada

Foreign companies generally establish a business presence in Canada in one of three modes:

1. Corporations

2. Partnerships (general or limited)

3. Extra Provincial Corporations (EPC)

Establishing a Corporation requires 25% local ownership, while Partnership is 50% and an EPC requires at least a local resident agent or representative in the Province that the company registers in.

 

The first step no matter which mode a company decides to enter Canada is to do a name search so there is no conflict with a local named company.

Business Entities in Canada

Corporation

Incorporation of a Canadian corporation can be done either at the federal or provincial/territorial level. When you incorporate your business, it is considered a legal entity that is separate from the shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation

Partnerships

Canada allows for two forms of partnership: a general partnership or a limited partnership. In certain circumstances, these can also later be ‘incorporated’ into a limited liability partnership.

Extra-Provincial Corporation (EPC)

In Canada you can incorporate at a provincial level, such as British Columbia, Ontario etc each province has its own specific requirements to set up a business. One of the particular benefits of an EPC is that it does not have a minimum requirement of Canadian residents; therefore it can be wholly foreign owned and directed. However, an EPC must generally have permanent resident Agent for Service (e.g. in Ontario).

Limited Liability Partnership

Registration of companies in Canada in this form of ownership, as well as the previous form, is possible without establishing legal entity. This makes it possible to optimize the tax costs and significantly simplify the procedure, which has a positive impact on the terms of establishment. Partners are not liable for the entire enterprise.

Our Services

  • Our specialists can analyze the nature of the future business in Canada for compliance with the selected jurisdiction;

  • Contact relevant governmental agencies on your behalf to obtain necessary requirements and statements;

  • Assist with the local certified translation of the necessary documentation;

  • Help with company setup and registration services;

Client consultations can be conducted either remotely via zoom or in the office.

 

 

We can assist as well with:

  • Name reservation;

  • Assistance in opening a Canadian bank account for your company;

  • Registering with tax authorities and obtaining a GST/VAT from the revenue department;

  • Drafting of required documents;

  • Preparation of forms to be filed;

  • Filing of company incorporation application;

  • Liaising with the concerned government department

Every incorporated business must have a registered office address.

Approximate set of documents required for company registration in Canada:

  • Certificate of Incorporation;

  • Memorandum of Association and Articles of Association of the Company;

  • Articles of Incorporation for a Federal Corporation or a Provincial Territory in Canada;

  • Registered Office of the Business and Information on first Board of Directors;

  • Name Search Report

  • Federal Business Number and the Income Tax Number for carrying out corporate transactions from the relevant revenue authority of Canada;

  • In case the Shareholders are foreigners then address proof must be provided in Canada;

  • Copy of the Passport (Visa);

  • Information on the Paid up capital Required for forming a company;

  • Application filing fee

If your company requires business registration services in Canada, contact us for consultation today