Company Registration in Canada
Registering a company in Canada does not directly lead to obtaining permanent residency; the applicant must proceed through startup or entrepreneurial methods. Having a business plan, being at least 18 years old, no criminal record, having financial capability, and having a degree are among the conditions for registering a company in Canada.
In general, registering a company in Canada is possible through several methods. These methods include:
- Startup Method
- Provincial Entrepreneurship Program in Canada
- Owner-Operator Program or Buying a Company in Canada
- Registering a Company Branch in Canada (Intra-Corporate Transfer or ICT)
Registering a company in Canada typically costs between $200 and $500, depending on the type and location. Immigration through company registration requires investment, as it’s not possible without capital. While some may qualify for business loans, the residency obtained is temporary, and you must apply for permanent residency in Canada through other programs.
This guide covers the conditions, pros, and cons of immigration to Canada through company registration. For expert help, contact Malekpour Institute. You can also ask your questions in the comments section and receive a prompt response.
Conditions for Company Registration in Canada
There are no residency or Canadian citizenship and nationality requirements to register a company in Canada. However, non-residents may need a Canadian resident or registered agent in the province of registration. Certain industries may also have additional regulatory requirements, so it’s recommended to seek legal or industry-specific advice.
In general, to register a company in Canada, you must adhere to specific requirements and conditions. These conditions include:
- Having a business plan
- Age 18 and above
- Financial capability
- Having an educational degree
- Management experience/at least three years
- No bankruptcy in the past
- No criminal record
Advantages and Disadvantages of Registering a Company in Canada
In this section of the article, we will examine the advantages and disadvantages of registering a company in Canada. This will help you identify the strengths and weaknesses should you consider investing and immigrating to Canada through company registration. Some advantages of registering a company in Canada include:
- Advantages of registering a company in Canada
- By registering a company in Canada, you will have access to the international market and new customers in this country and other parts of the world.
- Canada is known as a country with a dynamic business environment, and foreigners will benefit from government support and facilities to start and develop their business.
- The process of registering a company in Canada is simple and fast, and it usually takes only a few weeks for you to register your company.
- The property rights laws in Canada are fair and ensure that your personal rights are properly protected.
- Canada has a skilled and highly educated workforce that can help you develop your business.
- With a favorable geographical location, strong infrastructure and a stable economy, Canada is known as a strategic location for international business.
- It is possible to open an account in Canada and obtain bank loans for companies.
- It is possible for the heirs to become owners of the company’s shares after the death of the main shareholders of the company.
- Investing in Canada is more affordable than in many countries and requires less capital.
- Disadvantages of incorporating a company in Canada
- Registering a company in Canada has significant costs, including incorporation fees, taxes, and legal fees.
- The Canadian tax system is complex and requires professional advice to take advantage of optimized tax payments.
- Registering a company in Canada comes with specific legal requirements that must be met, including establishing a general meeting and establishing financial accounts.
- Competition in the Canadian market is strong with local and international companies, and you need to have appropriate strategies to attract customers.
- Foreigners need a work visa to manage and work in their company in Canada, which can be time-consuming and complicated.
- The business culture in Canada may be different from the business culture in your home country and you need to adapt and understand it.
- Registering a company will only lead to permanent residence through innovative and entrepreneurial methods (provincial program).
Types of Companies in Canada
To obtain residency through registering a company in Canada, the applicant must first present a very strong business plan. If the business plan is approved, the desired company can be registered. There are several types of companies in Canada, and applicants can choose one based on their conditions.
Below are the types of companies in Canada:
- Limited Liability Company
A limited liability company is one of the most expensive types of company registration in Canada. In a limited liability company, the owners are not responsible for paying the company’s debts.
- Cooperative Company
In a cooperative company, the responsibility of the members is limited, and this type of company belongs to all its members.
- Private Ownership Company
A sole proprietorship is one of the simplest types of companies, and it has a simpler tax reporting process compared to other companies. It is important to note that Canadian banks are not keen to provide loans to sole proprietorships.
- Partnership Company
In partnerships, profits and losses are shared among all members, and each partner is responsible for the debts incurred by another partner.
Comparison of Types of Companies in Canada
Choosing the correct form of business ownership is very important because the type of company you select will determine how your business is organized, how the money entering and exiting your company is managed, and how your business is taxed.
Therefore, we will compare the types of companies in Canada below to assist you in choosing the best form of business ownership and registering a company in Canada:
| Type of Company Registration in Canada | Advantages | Disadvantages |
|---|---|---|
| Sole Proprietorship | – Simplest and least expensive to set up – Full control by the owner – Simple tax reporting (no separate corporate tax return needed) |
– Unlimited personal liability (no legal separation between owner and business) – Hard to raise capital – Difficult to sell |
| Partnership | – Shared risk and management – Simple tax reporting (no separate corporate tax return needed) |
– Risk of disputes between partners – Each partner can be held liable for the debts incurred by the other – Joint decision-making can be challenging |
| Corporation | – Limited liability (owners not personally liable for debts or obligations) – Easier to raise capital – Often required for government contracts – Flexible tax planning through salary or dividends |
– Most expensive and complex to set up and maintain – Ongoing administrative tasks (must file annual corporate tax returns) |
| Cooperative | – Owned and controlled by members – Limited liability |
– Slow decision-making – Risk of conflicts among members |
Steps to Register a Company in Canada
Individuals who decide to register a company and immigrate to Canada through this method must follow the necessary steps to be able to register their company. The steps for registering a company in Canada are as follows:
- Choosing an official and valid name for the desired company according to Canadian laws
- Drafting the company’s rules in the articles of association
- Seal all securities, contracts, company transactions and minutes of directors’ meetings
- Completing the relevant forms
- Paying the company registration fees
- Obtaining all necessary permits for company registration
- Opening an account for company registration and carrying out all banking affairs in Canada
Required Documents for Company Registration in Canada
The documents required for immigration to Canada through company registration include the following:
- Identification documents, including passports, marriage certificates (if married)
- Business plan
- Applicant’s documents
- Educational documents and records
- Resume and work and management records
- Bank statements
Methods of Registering a Company in Canada
In general, company registration in Canada is possible through several methods, each with its own advantages and disadvantages. These methods are briefly mentioned below.
- Startup Method
- Provincial Entrepreneurship Program in Canada
- Owner-Operator Program or Buying a Company in Canada
- Registering a Company Branch in Canada (Intra-Corporate Transfer or ICT)
Company Registration in Canada through Innovation (Startup Canada)
The Canada startup visa or Innovation Visa is one of the best types of investment and company registration in Canada. Applicants for this type of investment must provide a completely new and innovative business plan. You must choose a unique business name that has not been previously used by another company in your province or region.
Register your business with the relevant provincial or regional authority—either online or in person. Depending on your business type, permits may be required from federal, provincial, or municipal governments. This business model often involves collaboration with at least 5 people, and the minimum investment ranges from $150,000 to $800,000, depending on the business type.
Registering a Company through Provincial Program in Canada
For company registration in Canada through a provincial company and incorporation in a specific area, the following steps must be completed:
- To complete your registration, visit your provincial or territorial government registration office.
- If you plan to operate in other provinces or territories, you must register as an interprovincial or interterritorial corporation in those jurisdictions.
- Obtain a federal business number.
- Have a corporate income tax account.
- You may need federal, provincial (territorial) and municipal government licenses.
- You may need other tax accounts such as GST/HST, payroll, import/export, which can be registered for at the same time as your business number, if needed.
Applicants will automatically receive a business number and corporate income tax account by registering in certain provinces or territories. However, in contrast, by registering in other provinces or territories, they must also apply for a business number. The table below displays these areas and provinces:
| Province/Territory | Business Number & Corporate Tax Account Automatically Issued Upon Registration |
|---|---|
| Alberta | ✅ Yes |
| British Columbia | ✅ Yes |
| Manitoba | ✅ Yes |
| New Brunswick | ✅ Yes |
| Nova Scotia | ✅ Yes |
| Ontario | ✅ Yes |
| Prince Edward Island | ✅ Yes |
| Saskatchewan | ✅ Yes |
| Newfoundland and Labrador | ❌ Must register separately for a Business Number |
| Northwest Territories | ❌ Must register separately for a Business Number |
| Nunavut | ❌ Must register separately for a Business Number |
| Quebec | ❌ Must register separately for a Business Number |
| Yukon | ❌ Must register separately for a Business Number |
Buying a Company in Canada
To buy a company in Canada under the Owner-Operator program, you must purchase at least 51% of the shares. The company must be active, financially stable, and operational for at least 3 years. This route allows you to work as a specialized employee in your business. With proper planning and due diligence, buying a Canadian company can be a strong pathway for business expansion.
Individuals who intend to purchase a company in Canada can proceed with the purchase if they adhere to the following points:
- Purchase more than 51% of the company’s shares
- Employ at least two Canadians
- Have a positive impact on the Canadian economy
- Have high profitability
- Have capital for at least 1 year
- Obtain an LMIA code
- Proficiency in English or French
- Have a relevant resume
Registering a Branch of a Company in Canada (Intra-Company Transfer Program – ICT)
One of the most common ways to invest in Canada is registering a company branch through the Intra-Company Transfer program (ICT) in Canada. This program allows companies to transfer key employees from their foreign entity to a branch in Canada without going through the standard immigration process. This can save time and cost and allow companies to establish a presence in Canada quickly.
Employees of a foreign company can immigrate to Canada by transferring to its Canadian branch. The Canadian office must prove the employee is essential to its operations. To qualify, the employee must have worked at least 30 hours per week for one year at the foreign company. A valid relationship between the foreign and Canadian entities is required to register the branch.
Cost of Company Registration in Canada
One of the most important issues when migrating is to consider cost of immigration to Canada. The cost of company registration and the minimum initial capital required to establish a business and obtain entrepreneurship in Canada vary depending on the location of the company and the type of business. Generally, it ranges from $200 to $500. Overall, registering a company in Canada does not entail significant costs for the applicant.
For more details on related costs and to enter the official website of the Canadian immigration office, visit https://www.canada.ca/.
Company Registration Laws in Canada
Incorporating a company in Canada is a legal process governed by federal and provincial laws. The laws may vary depending on the type of company and the location of incorporation. Companies can be incorporated at the federal or provincial level.
- Federal registration: The company can operate throughout Canada.
- Provincial registration: The company is only allowed to operate in the province where it is incorporated.
Permanent Residency in Canada through Company Registration
To obtain Canadian residency through company registration, investors must follow provincial regulations and submit a strong business plan. While company registration or entrepreneurship offers a 1-year temporary residency (with PR possible after 4 years), the startup/innovation route allows applicants to gain Canadian permanent residency (PR) from the start.
Best Cities for Company Registration in Canada
We will evaluate the best cities in Canada for company registration based on the advantages and conditions of each city:
- Toronto, Ontario
- Vancouver, British Columbia
- Calgary, Alberta
- Montreal, Quebec
- Ottawa, Ontario
- Halifax, Nova Scotia
Malekpour Institute Services for Company Registration in Canada
The Malekpour Immigration Institute, with years of experience in immigration matters, provides specialized services in company registration in Canada. These services include legal advice on selecting the type of company, completing necessary documents, providing a business plan, official company registration in Canada, and support for obtaining the work visa related to the company registration.
Additionally, the institute offers guidance on taxation, business laws, and permanent residency conditions following company registration. The Malekpour Institute collaborates with experienced lawyers and consultants in this field, including Mr. Mahyar Afzali, a Canadian immigration consultant and official member of the Consultants Organization, who provide valuable guidance to applicants.
Frequently Asked Questions about Company Registration in Canada
- Is it possible to register a company in Canada without capital?
No, to register a company in Canada, the applicant must have sufficient capital, which will depend on the applicant’s type of business.
- Considering investment standards, is Canada a suitable option for investment?
Yes, Canada is a country with very low investment risk.
- How much does it cost to register a company in Canada?
The costs that an individual must consider when registering a company in Canada include initial capital and registration fees. The initial capital varies by the type of company. The company registration costs in different provinces of Canada may vary.
- Is it possible to register a company in Canada without capital?
No, you must have the necessary capital depending on the type of company and business you select.
- How much does it cost to register a company in Toronto?
The cost of registering a company in Toronto depends on the type of company and is generally around $300 to $400 CAD. Additionally, extra costs such as legal fees, consultancy, and tax registration should also be considered.
- What are the advantages and disadvantages of company registration in Canada?
Advantages include a transparent economy and laws, access to global markets, facilities for startups, while disadvantages include registration costs and taxes, a demanding registration process, and high competition.
Conclusion:
To register a company in Canada, you need a strong business plan that must be approved first. The startup visa program is one of the best immigration paths for entrepreneurs, offering a faster route to permanent residency (PR). However, simply registering a company does not grant residency or citizenship. For expert advice and free consultation on company registration and immigration, contact Malekpour Immigration Institute.
