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Company registration in Canada
- Price:from 1950 EUR
- Term:3-4 weeks
Canada is one of the most influential countries in the world and is part of the G7. The jurisdiction attracts foreign entrepreneurs at the state level, offering start-up visas, grants, tax credits and small business deductions.
For those who are focused on the US market, value privacy and do not want to be offshore, Canada is the most profitable option.
Starting a business in Canada is popular for areas such as finance, international trade, consulting services, IT, digital, industry and agricultural activities.
- identification of the client according to the KYC procedure
- selection of a unique company name
- registration procedures
- payment of the registration fee
- services of a legal address for a year
- preparation of a package of corporate documents
- corporate seal
- legal and tax advice
- one courier delivery
- checking the company's compliance with all compliance and KYC criteria
- legal support of the company
- services of a legal address for a year
- payment for registered agent services
- preparation of an annual static report on the company
- payment of an annual fee
- legal and tax advice
- 1Canada is not offshore and is not included in the black or sanction lists of countries
- 2Direct access to the US international market
- 3The country has trade agreements with the US, Europe, Britain, Mexico
- 4Opportunity for a non-resident to create a tax-free partnership
- 5Canadian partnerships are exempt from filing financial statements
- 6Information about the ultimate owners of companies is not publicly available
- 7No obligation to appoint resident partners of the company
- 8Opening a company does not require a personal visit to Canada (may be required only for a local account)
Canadian partnerships are taxed at a zero corporate rate if the partners are non-residents of Canada and do not conduct local business activities. In such a case, each partner pays taxes in the country of their registration. Often, when the registration of an «offshore» company in Canada is required, it refers specifically to a tax-free partnership. However, if the partnership conducts commercial activities in Canada, it must register as a sales tax payer and open a payroll bank account.
Corporations are subject to the general taxation regime. Canada’s tax system has 2 levels: federal and provincial. At the federal level, the corporate tax rate with all deductions is 15%. The corporate tax at the provincial level varies from 0 to 16%. Thus, the final tax rates differ depending on the province. The most favorable provinces for foreign business are Ontario and British Columbia, where the total corporate income tax rate is 26.5% and 27% respectively. For small companies with income up to 500,000 CAD/year (approximately 370,000 USD), a reduced federal rate of 9% is available if the company meets the requirements (is a private corporation controlled by Canadian residents).
- In Canada, sales tax also consists of a federal and a provincial part. The federal tax is 5% (GST). Further depends on the province:
- — in some provinces a harmonized tax (HST) applies — usually 13–15% (in Ontario – 13%);
- — in others — separately 5% federal and 6–10% provincial (PST) (in British Columbia – 5% and 7%);
- — there are regions without a provincial tax (Alberta — only 5%).
In practice, the rate for the final consumer ranges from 5% to approximately 15% depending on the province. A business is required to register as a GST payer if its annual turnover exceeds 30,000 CAD.
Due to the large number of double taxation avoidance agreements, taxes on passive income can be reduced from 25% to 5-15%, depending on the country of residence. If a company pays dividends to an individual owner, the tax arises at the level of the recipient.
All companies must obtain a Business Number (BN) from the tax authority, which will identify them when paying provincial and federal taxes and duties.
More details about taxes in Canada.The legislation allows the creation in the country of: partnerships, corporations, limited liability companies, trusts, branches, private enterprises and partnerships. For international business purposes, LP or LLP partnerships, as well as a limited liability company - LTD, are suitable.
To register a company in Canada, non-residents are advised to consider the provinces of Ontario and British Columbia, which do not have strict legal requirements. On an individual basis, our lawyers will help you decide on the province and select an organizational and legal firm for specific business purposes. In Ontario, it is profitable to open an LP, and in British Columbia - an LLP and LTD.
- Capital – the minimum amount is not set, from 1 USD.
- Partners – a private or corporate person of any residency. A minimum of two partners is required, one of which is designated as a manager. It is recommended that you assign individual partners to avoid obtaining a local license.
- Director – the functions of managing the company are performed by the general partner.
- Secretary – optional, the legislator does not require.
- Register of beneficiaries - data on the ultimate owners are entered in the Register, but disclosed only to public authorities.
- Available information - about the name of the company, legal address, the size of the authorized capital.
- Legal address – the presence of a local address in the selected province is mandatory.
Canadian partnerships are exempt from annual financial reporting and auditing if they do not operate domestically. However, they must update their registration data annually by submitting a static Annual Report.
- 3 desired company names;
- description of directions of work of the future company;
- national and foreign passports of the company's partners;
- confirmation of the address of registration of partners of the company (for example, a receipt for utility bills) in English.