Canada
Federal or provincial? LLC or corporation? Compare Canada incorporation options — federal vs BC vs Ontario vs Alberta — with verified costs, timelines, and providers.
Foreign Ownership Eligibility
Canada welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership allowed
- No residency requirement for shareholders
- Remote formation possible (federal and most provinces)
- 25% of directors must be Canadian residents (federal CBCA)
- Some provinces (e.g., BC) have no director residency rule
- Business Number issued by CRA remotely
Ownership
100% Foreign OK
Formation
100% Remote
Note
Federal (CBCA) corporations require at least 25% of directors to be Canadian residents. Consider incorporating in British Columbia or Nova Scotia if you want zero director residency requirements.
Tax at a glance
Canada Tax Overview
15%
Federal corporate tax (general)
After general tax reduction — standard rate for non-CCPC and larger corporations
9%
Federal corporate tax (CCPC small biz)
Small Business Deduction rate for qualifying CCPCs on first CAD $500,000 active business income
23%
Combined tax — Alberta (general)
Lowest combined general rate of major provinces: 15% federal + 8% Alberta
11%
Combined tax — Alberta (small biz)
15% federal – 6% SBD = 9% federal effective + 2% Alberta provincial
26.5%
Combined tax — Ontario (general)
15% federal + 11.5% Ontario provincial
27%
Combined tax — BC (general)
15% federal + 12% BC provincial
CAD $30,000
GST/HST threshold
Mandatory registration once taxable supplies exceed this over any 4 consecutive calendar quarters
25% standard
Withholding tax (dividends to non-residents)
Reduced by applicable tax treaty — e.g. Canada–US treaty typically reduces to 5% or 15%
0%
Withholding tax (arm's-length interest)
Interest paid to arm's-length non-residents is generally exempt from Canadian Part XIII withholding
35%
SR&ED ITC (CCPC enhanced rate)
Investment Tax Credit for qualifying scientific research and experimental development expenditures — CCPCs only; partially refundable
Pros & cons
Advantages & Considerations
Key Advantages
No director residency requirement in BC, Ontario, and Alberta — 100% foreign ownership and management permitted at provincial level
SR&ED tax credits: up to 35% ITC for qualifying CCPCs on R&D expenditures — one of the most generous R&D programmes in the G7
CUSMA/USMCA access: preferential market entry to the United States and Mexico, covering combined GDP of ~US$30 trillion
CETA and CPTPP membership adds preferential access to 37 additional countries across Europe and the Asia-Pacific
93 bilateral tax treaties in force — reducing double taxation on dividends, royalties, and management fees across major trading partners
Alberta: lowest combined corporate tax rate of major provinces (11% small biz / 23% general) with no provincial sales tax
No minimum share capital under CBCA — incorporations can begin with a single CAD $1 share
BC Unlimited Liability Company (ULC) is transparent for US tax purposes — enables loss flow-through to US parent companies
Rule of law, independent judiciary, and freely convertible currency
Arm's-length interest paid to foreign lenders is generally exempt from Canadian withholding tax (Part XIII exemption)
English-speaking workforce with tech talent concentrated in Toronto, Vancouver, and Montreal
Federal annual compliance is low-cost: CAD $12/year annual return fee for CBCA corporations
Considerations
Federal CBCA requires at least 25% of directors to be resident Canadians — a real barrier for fully foreign-owned businesses using the federal route
Canada's Start-up Visa Programme was paused on January 1, 2026 — the fastest pathway to Canadian PR for foreign founders is currently unavailable
CCPC status (needed for the 9% small business rate and 35% SR&ED credits) requires Canadian shareholders to control the company — foreign-owned companies cannot qualify
Multi-province operations demand extra-provincial registration in each province, multiple compliance filings, and potentially separate provincial tax returns
Canadian business bank accounts are difficult to open for non-residents — most major chartered banks require an in-person visit; expect 2–6 weeks minimum
Quebec's Charter of the French Language (Law 96) creates significant obligations for businesses with 25+ employees, including French-language workplace and signage requirements
Standard 25% withholding tax on dividends, royalties, and management fees paid to non-residents (reduced by treaty — but treaty compliance adds administrative cost)
High cost of living in Vancouver and Toronto increases payroll and office costs if you hire locally
GST/HST regime: multiple provincial tax systems (HST, PST, QST) create compliance complexity for businesses operating across provinces
Alberta incorporations must go through an authorized registry agent — no direct online government filing available
Structural Comparison
FEDERAL CORP
BC COMPANY
ULC
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Choose province or federal: decide between federal (CBCA) and provincial route based on director residency constraints, tax rate, and geographic scope
Reserve a company name: conduct a NUANS search (federal or provincial name request); alternatively choose a numbered company to skip this step
Draft Articles of Incorporation: specify share classes, director count range, registered office province, and any restrictions on business
Identify and confirm initial directors: for federal corporations, confirm at least 25% are Canadian residents; sign director consent forms
Appoint a registered office: a physical address in Canada (not a P.O. box) — a corporate services provider can supply this
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Canada setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Canada. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| RBC Royal Bank | Major chartered bank | Low (Visit Required) | Canada's largest bank. Business accounts for incorporated companies. Non-resident-owned companies typically require an in-person visit to a Canadian branch. |
| TD Canada Trust | Major chartered bank | Low (Visit Required) | Large US-Canadian presence — useful for companies with US and Canadian operations. In-person visit generally required for non-resident founders. |
| BMO Bank of Montreal | Major chartered bank | Low (Visit Required) | Strong in business banking for incorporated companies. In-person requirements similar to RBC and TD. BMO offers USD business accounts for cross-border operations. |
| Scotiabank | Major chartered bank | Low (Visit Required) | Particularly strong in Latin American markets — useful for companies with Latin American shareholder or business ties. Standard in-person requirements apply. |
| Wise Business | Fintech / multi-currency | High (Remote) | Can open remotely. Provides Canadian business accounts with local CAD details. Supports multi-currency including USD, GBP, EUR. Lower fees than chartered banks for international transfers. Not a full-service business bank — no credit, loans, or term deposits. |
| Airwallex | Fintech / multi-currency | High (Remote) | Remote opening supported for incorporated Canadian companies. Multi-currency accounts with CAD local details. Good for businesses receiving international payments. No physical banking services. |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual Return (Federal CBCA) | Within 60 days of the anniversary of incorporation | All CBCA corporations must file an Annual Return with Corporations Canada confirming current registered office, director list, and basic corporate information. |
Corporate Tax Return (T2) | Within 6 months of the corporation's fiscal year end | All Canadian corporations — federal and provincial — must file a T2 Corporate Income Tax Return with CRA each year, even if no tax is owed. |
GST/HST Return | Varies by reporting period; deadline is 1 calendar month after reporting period end | Corporations registered for GST/HST must file returns and remit net HST collected. Filing frequency is annual (if revenue < CAD $1.5M), quarterly, or monthly — assigned by CRA. |
Significant Control Register | Maintain current at all times; update within 15 days of any change | CBCA corporations and Ontario corporations must maintain a register of individuals with significant control (ISC register). Records the identity of anyone holding 25%+ of shares or votes, or with significant influence. Corporations Canada can make some CBCA ISC information public unless non-publication is approved in a permitted case. |
Annual General Meeting (AGM) | Within 15 months of previous AGM (18 months from incorporation for first AGM) | CBCA and most provincial corporations must hold an AGM within 18 months of incorporation, then annually within 15 months of the previous AGM. The AGM approves financial statements and elects directors. Written shareholder resolutions signed by all shareholders can substitute for a meeting. |
Extra-Provincial Registration Updates | Varies by province — typically within 15–30 days of change | Provincial corporations registered extra-provincially in other provinces must keep those registrations current — particularly registered office changes, director changes, and corporate name changes must be notified to each province. |
SR&ED research tax credit facts
35% Investment Tax Credit (ITC) rate for qualifying CCPCs on eligible R&D expenditures — one of the highest R&D credits among G7 nations
15% ITC basic rate available to all eligible claimants (including non-CCPCs and non-Canadian-controlled companies)
Qualifying activities include basic research, applied research, and experimental development — must involve scientific or technological advancement and systematic investigation
Refundable credits available for CCPCs — meaning you can receive cash back from CRA even if the company has no tax owing
Provincial R&D tax credits available on top of the federal SR&ED ITC — Ontario, BC, Alberta, and other provinces offer additional incentives
SR&ED claims filed with the T2 return; detailed technical and financial documentation required
Non-CCPC companies (including foreign-controlled companies) can still claim the 15% basic ITC — credits are non-refundable but reduce tax payable
Note: CCPC status requires Canadian shareholders to control the corporation — foreign ownership typically disqualifies CCPC status
Frequently Asked
Speak with a Canada specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.