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Starting a business in Canada might seem complicated, but incorporating a business here is surprisingly easy and cost-effective, probably more so than any other western country. The best part? You can complete the entire process online, even if you have no immigration status in Canada or have never visited the country.
Yes, absolutely. Non-residents can register companies through provincial incorporation in eight Canadian provinces:
Ontario (most flexible regulations)
British Columbia
Alberta (requires local agent)
Nova Scotia (requires local agent)
New Brunswick
Prince Edward Island
Saskatchewan (requires local agent)
Quebec
Alberta, Nova Scotia, and Saskatchewan require local 'agents' who are residents to serve as the main communication address for your company. However, the remaining provinces only require a local address within the province for registration. Ontario offers the most flexible and relaxed regulations for non-resident provincial corporation registration.
Before a designated organization can endorse you under the Start-Up Visa (SUV) program, you must register a Canadian corporation with all founders as shareholders. This step is required to meet the program’s minimum eligibility criteria.
Before incorporating your business for the Canada's Startup Visa program, note these essential criteria:
Avoid Quebec incorporation – This disqualifies all applicants from the program
10% minimum ownership – Each Startup Visa applicant must own at least 10% of voting shares
Majority control – Startup Visa applicants (1-5 people) must control the majority of corporation shares
Non-immigrating shareholders allowed – But immigrating applicants must maintain majority control
All nationalities can register businesses in Canada, there are no nationality restrictions. US citizens, Europeans, Asians, and individuals from any country can easily incorporate in Canada. However, when opening a bank account, we recommend being physically present in Canada unless you have local Canadian directors who can complete this step.
Provincial corporation registration costs range from $675 to $1,200 depending on your chosen province. This represents exceptional value compared to incorporation costs in other developed countries.
Absolutely not! There is no legal requirement to have a lawyer incorporate a business for you in Canada. Of course, you can use their services if you wish to do so, but you will be paying 100% more than the online DIY services available, which are quite user friendly. Many applicants may use a lawyer to draft up a shareholder agreement after the incorporation is completed, although templates are available online as well for this purpose. Each business and shareholder arrangement is unique and hence may require customization and legal advice.
Registered in the federal database under CBCA
Cannot be wholly owned by non-residents
Stronger name protection across Canada
Requires local address and extra-provincial registration
25% of directors must be Canadian residents
More public exposure through ISC (individuals with significant control) and director information disclosures
Annual renewals: $12
Name protection only in registration province
Can be 100% non-resident owned
Less public information exposure (Although provincial corporations also have their internal ISC/BO equivalent registers, in some provinces it is more difficult to find public information on the shareholders and directors)
Annual renewals: $12-$45+ (varies by province)
Simpler for fully non-resident boards
Employment regulations are determined by the province where your employees work. Even if your business is federally incorporated, you must comply with the employment laws of the province in which your staff is located.
For bank account openings, a Canadian-resident director must be present to open an account for a federal corporation. For provincially incorporated businesses, a non-resident owner can open the account in person while in Canada.
From a tax perspective, there is no tax advantage with either federal nor provincial incorporation.
For general entrepreneurs, choose federal incorporation if nationwide name protection is a priority and you are comfortable with the CBCA director residency and public ISC disclosure. Otherwise, provinces such as British Columbia, Ontario, Alberta, Nova Scotia, New Brunswick, or Quebec may offer a simpler path for a fully non-resident board of directors.
For Start-Up Visa applicants, we recommend incorporating provincially unless you have Canadian-resident directors actively involved in the business.
Local address in the province (residential addresses acceptable)
Full names and residential addresses (even if outside of Canada) of all shareholders
For some provinces: contact info and address of a ‘local’ resident agent is needed
25% of directors must be Canadian residents (specific sectors may require higher thresholds)
Local address
Extra-provincial registration in operating provinces
Important: The local address is primarily for receiving your business number from the Canada Revenue Agency (CRA). Ensure someone can collect and open this crucial mail.
After incorporation, the CRA will mail your business number to your registered address. This number is essential for opening bank accounts and accessing other services in Canada. Arrange for someone to collect and forward this important document.
Unlike many jurisdictions worldwide, Canada has zero capital requirements to register and start a company. You can even open a bank account without minimum capital, however, remember that physical presence or a Canadian resident director is currently required for account opening.
Yes, you can start and own a business in Canada without any immigration status. However, operating the company from inside Canada will require work authorization. Otherwise, registering, owning and investing in a company requires no immigration status or eligibility.
If you are a non-resident individual who opens a business in Canada, you will likely have to file a Canadian personal income tax return to report the income you earn from that business. The "90% rule" is a key tax provision that can significantly affect your personal tax obligations. It determines your eligibility for certain federal and provincial non-refundable tax credits.
In short, the rule works like this:
The Rule: If 90% or more of your total worldwide income for a given tax year is from Canadian sources (including your Canadian business), you may be eligible to claim the same non-refundable tax credits that a Canadian resident can.
Benefits: These tax credits, such as the basic personal amount, age amount, or spouse or common-law partner amount,can directly reduce your personal tax bill.
Proration: If less than 90% of your worldwide income is from Canadian sources, your non-refundable tax credits will be prorated. This means the amount you can claim will be based on the number of days you were in Canada during the year.
For a non-resident business owner, this rule is crucial because the income from your Canadian business is considered "Canadian-source income." Therefore, to claim the full non-refundable tax credits, you must ensure that your Canadian business income, plus any other Canadian-source income, constitutes at least 90% of your total income from all global sources.
For more information visit the Official CRA Website.
The main purposes of incorporating a business in Canada are:
To conduct business in Canada (i.e. selling products or services)
To hold assets in Canada as part of a tax optimization strategy
To apply for the Startup Visa business immigration program (required by the endorsing designated organization)
To protect your personal assets from business liabilities
To establish credibility with Canadian customers and partners
It is one of the cheapest and fastest jurisdictions to register and renew a company, compared to the US, Dubai, Singapore, UK, EU, Oman, Panama and others. There is no requirement to become a resident of Canada to register a company. Another advantage is that a local limited company in Canada protects your personal assets from business liabilities.
Some of the main disadvantages of incorporating in Canada are:
Tax obligations: Requirement to file taxes every year no matter if you have revenue or not, even for dormant companies
Annual renewals required: even if it’s only $12 to $45 a year, it is required otherwise the company would not be in good legal standing
In-person bank account opening (unless using Canadian resident directors)
Ongoing compliance requirements
We recommend two platforms to register a company remotely in Canada due to their ease of use and low cost. There are hundreds and thousands of service providers in this space, but the following two are quite efficient and should be checked out by anyone who is serious to register their company in Canada, for the Startup Visa program or any other reasons:
Website: ownr.co
Provincial and federal corporation registration
Special offer: $300 cashback when opening RBC bank account within 60 days
Additional services: shareholder agreements, renewals, corporate registry services
Backed by RBC (major Canadian bank)
Website: ontariobusinesscentral.ca
Lowest-cost Ontario incorporation services
Excellent customer support with positive reviews
Specialized in Ontario provincial corporations
Choose provincial incorporation with all Startup Visa applicants as shareholders. We only recommend federal corporations when Canadian directors are actively involved in your business.
Important: Register your corporation in the province where you plan to reside as an essential member with your work permit. Registering in a different province may create challenges with:
IRCC (Immigration, Refugees and Citizenship Canada)
Government medical and health services
Local school board registration for children
Ingwe Tip: If essential Startup Visa applicants will reside in different provinces, you can register multiple locations through the extra-provincial registration process.
Incorporating a business in Canada is your first crucial step toward Canada Startup Visa success and establishing a strong Canadian business presence. With minimal requirements, low costs, and streamlined online processes, Canada makes business incorporation accessible to entrepreneurs worldwide.
The key to success lies in choosing the right province, understanding the requirements, and ensuring proper compliance from day one. Whether you're planning to immigrate through the Startup Visa program or simply expand your business into the Canadian market, incorporating in Canada provides an excellent foundation for growth.
Ready to start your Canadian business journey? The process is simpler than you think, and the opportunities are limitless.
🚀 Take Action Today: Start Your Canadian Startup Visa Business Journey
📧 Need personalized guidance? Contact our Startup Visa experts for a personalized consultation and learn how business incorporation fits into your complete immigration strategy.
