Company registration in Canada
Registering a company in Canada is one of the ways to invest and immigrate to this country. If you have a business in your country and you own and manage it, you can apply to transfer your business to Canada and get a work visa through company registration in this country. Then you become eligible for permanent residence in Canada.
In this article, we have explained everything you need to know about the company registration process in Canada. So, to get the necessary information in this field, stay with us by continuing the article.
Advantages and disadvantages of registering a company in Canada
Advantages
The process of registering a company in Canada is simple.
The cost of registering a company in Canada is lower than in other countries.
Company registration is possible in connection with various industries and businesses.
Canada’s stable economy makes it safe to invest in this country.
Outside of Canada, you can register a company in this country online.
Disadvantages
Different Canadian provinces have different rules for company registration.
If the company is registered provincially in Canada, the protection of the company name from other companies is less.
Company registration in some Canadian provinces requires a service representative in that province.
To register a company in some Canadian provinces, the director of the company must be a Canadian citizen or permanent resident.
Types of business companies in Canada
Corporation
Stock companies in Canada act as a legal entity and are independent from the company’s shareholders. These types of companies can be registered both at the federal and state levels and at the provincial level. If a stock company is registered federally and intends to operate in Canadian provinces, it must be registered in each province according to the laws of that province.
Advantages
If the company suffers a loss, the company is mostly responsible for compensating the losses and debts, and the shareholders have limited responsibility in this field.
They are permanent and do not need to be renewed.
In case of death of shareholders and owners, the company will not be dissolved.
It is possible to transfer ownership of the company.
They have many tax benefits.
The company name is protected a lot.
Disadvantages
The cost of registering and setting up these companies is higher than other companies.
There may be disagreements between shareholders and company managers.
Its side costs are high.
General Partnership
These types of companies must have at least 2 members and it is possible to have more partners. In order to register this type of companies, an agreement must be formed in which the names of the partners, the share of each of them and their respective responsibilities are specified.
Advantages
The cost of registering a company and setting it up is not high.
The expenses of the company are divided equally among all the partners.
The profit of the company is shared among all members.
They have tax benefits.
Disadvantages
In case of damage to the company, all partners are responsible for losses and debts.
All partners must agree on decisions and the opposition of one of them causes problems.
There is little protection of the company name.
Sole Proprietorship Company
In these types of companies, only one person is the owner of the company, and he is responsible for all the losses and damages of the company.
Advantages
The cost of registering and setting up a company is relatively low.
They have a simple structure and are easier to manage.
All the profits of the company belong to its sole owner.
The sole owner is responsible for all decisions of the company.
Disadvantages
In case of damage to the company, all debts will be directed to its owner only.
If the owner dies, the company will be dissolved.
It must be renewed every few years.
There is little protection of the company name.
Steps to register a company in Canada
To start a business and know how to register a company in Canada, it is necessary to familiarize yourself with its various steps. At each stage, you must consider the conditions and laws related to it and take the necessary measures.
First step: planning for business
At this stage, you should consider the following:
Do your due diligence on the market for your business in Canada.
Prepare a strong business plan for it.
Choose the type and structure of the company: joint stock, partnership or sole proprietorship
Specify the location of the company.
Second step: Choosing a brand name for the company
The name you choose for your company or business must meet the following requirements:
Reflect the type of services or products you offer.
It is easy to pronounce and remember.
not long
The name of the company should be different from the names of similar companies.
The third step: registering the company with the government
After you have determined the company location, company type and business name, register it. for this job:
Open a business bank account.
Apply for a business number and tax accounts.
Step 4: Apply for business licenses and certificates
Depending on the geographical location of the company and its type of activity, certain licenses and certificates are required.
For example, if you plan to establish a company in the city of Vancouver in the province of British Columbia to produce special foods such as condiments, snacks, or edible juices, you must have a valid acquisition certificate from the city of Vancouver. You may also need zoning approval, building approval, and certificate of occupancy approval (such as police, fire, or health department approvals).
Step 5: Get support and financing for the company
Immigrant and native entrepreneurs who register and set up their company in Canada have the possibility of receiving various types of support at the national and regional level. These supports are provided in the form of programs, services, financial support and training in the desired business area with the aim of business development.
entrepreneurs and ultimately the development of the Canadian economy.
Types of company registration in Canada
Company registration in Canada is done in two ways: provincial/regional and federal. The company registration rules are different in each method.
Federal company registration in Canada
If you want to register your company at the federal level, in addition to the things mentioned in the section on how to register a company in Canada, you must also register for the following:
Legal documents related to company registration at the federal level
Federal Business Number
Federal tax returns
Other tax bills such as Income Tax, Goods and Services Tax (GST), Harmonized Sales Tax (HST), Export/Import Tax (if applicable)
Registration as an extra-provincial or extra-regional company (if you want to operate in other provinces or regions)
Obtain licenses and certificates from the federal government
Benefits of registering a company through the federal government in Canada
More protection of the company name
Canada’s federal corporate registrar applies strict tests before granting a company the right to use its name. Once the company name is approved, it is protected throughout the country so that no other company can misuse it.
The right to carry on business anywhere in Canada
Federally incorporated companies can conduct business anywhere in Canada and there is no restriction on which province or territory the head office is located.
Company recognition
Federally incorporated companies, like Canadian companies, gain global recognition.
Use of online services
The Federal Company Registry of Canada provides online services to registered companies through them, so that it is possible to send and receive documents and approvals, as well as pay fees, all online for them.
Company registration in Canada provincially
If you have decided to register your company in a specific province or territory in Canada, you need to pay attention to the specific rules of company registration in each province or territory. Usually, the general process of registering a company is the same in all provinces of Canada, but the difference is in the details and the method of carrying out the steps, and in each province, special laws are applied to all types of companies.
There are two types of company registration in the provinces. Register a Business and Incorporate a Business.
Company registration is usually done for sole proprietorship or partnership businesses. In these businesses, the company is not an independent legal entity, but in the registration of the company as Incorporated, the company acts as an independent legal entity and separate from its shareholders.
In the table below, we compare these two types of company registration:
Register a Business Incorporate a Business
Need to renew *
–
Use of the brand name for the company
*
*
Brand security
–
*
Tax deduction
–
*
Limited liability for owners
–
*
The ability to hire an employee
*
*
Risk capital
–
*
The possibility of structural changes in the company
–
*
Coordinated sales tax
*
*
Setting up a business bank account
*
*
Flexibility in changing business
–
*
Exclusive foreign ownership
*
*
Steps to register a company as Incorporate a Business in several Canadian provinces
Alberta
British Columbia
Ontario
Company registration procedures in Canada
There are two ways to register a company in Canada:
Company registration in Canada through the intra-company transfer program
In the Intra Company Transfer – ICT program, foreign companies that have a parent company, affiliate or subsidiary in Canada can transfer their executives, senior managers and specialist employees to the company to transfer or develop their business. transfer to Canada or register and establish a branch of the company there.
The Canadian ICT visa is a type of temporary work visa and is exempt from the LMIA permit. To register a company in this way, you must provide a detailed business plan.
Company registration in Canada through the owner-operator program
The Canadian Owner Operator visa is actually a temporary work visa issued under the Federal Temporary Foreign Worker Program or TFWP for short. Business owners or managers of a foreign company can register a company in Canada and get a temporary work visa through this program.
This method requires LMIA approval from the Canadian Labor Department. You have to prove that the registration and establishment of the company has benefits for the Canadian economy and will transfer expertise, employ Canadians and develop its economy.
Conditions for company registration in Canada
To register a company in Canada, conditions and rules are required, including:
Having management experience for at least three years
Being 18 years old and older
Not having a bad background
No previous bankruptcy
Being a Canadian citizen or permanent resident (different provinces have different requirements. For some provinces such as British Columbia, Ontario and Alberta, it is not required)
Having a business plan
Declaration of physical address in Canada
Having a service representative (including some provinces)
Having knowledge of English or French (not required)
Having a degree
Documents required to register a company in Canada
Employment documents showing managerial activity in the country of origin or proof of ownership of the company
Degrees
Identity documents including passport, birth certificate, marriage certificate (if any)
Clearances
Presentation of business plan
Setting up the articles of association for the Canadian company and filling out the related forms
Providing forms related to the physical address of the company, type of company, confirmation of the company name
Financial documents
Register all kinds of businesses in Canada
As mentioned before, the conditions and process of company registration are different in Canadian provinces. every station
It has special conditions and rules for company registration. For example, if you are looking to register a trading company, register a construction company, or register a transportation company in Canada, the general process of registering these companies is the same in every Canadian province. The only difference is in the details and obtaining the necessary permits and approvals for each business.
Registering a company branch in Canada
Foreign companies looking to expand their business in Canada can register and open a branch of their company in Canada. For this purpose, the company can transfer its senior managers or some specialized employees from the main company to the branch registered in Canada through the corporate transfer program or ICT.
Requirements for registering a company branch in Canada
The foreign company must work with a Canadian company such as a parent company, subsidiary, affiliate or branch of that company in Canada.
To register a company representative in Canada, the field of activity of the branch must be related to the field of activity of the parent company.
The foreign company must register its branch as an extra-provincial company or a foreign company.
Provide a Canadian bank account
Having a lawyer or representative who resides in Canada.
Documents required to establish a branch in Canada
Registration number of the parent company
Registration certificate of the parent company
Registered address of the parent company
The name of the country where the parent company is registered
Documents and legal forms required to register a branch in Canada
The statement containing the names of the branch managers to be registered
Information about local representatives of the parent company
How much does it cost to register a company in Canada?
In addition to the company registration fee in Canada, in some of its provinces you have to pay a fee for searching the company name in the NUANS system, as well as a fee for registering the company name.
What is the minimum capital to register a company in Canada?
The capital required to register and set up a company in Canada varies depending on the company structure (stock, partnership, sole proprietorship), the type of business, as well as the province and city where the company is located.
On average, the minimum required capital should be between 150 and 800 thousand dollars.
Registering a company in Canada does not automatically lead to obtaining Canadian permanent residence, but you must go through steps to qualify for permanent residence. After you register your company in Canada, get a work permit. You can do this in two ways: ICT visa or Owner Operator visa.
Read more: Canada Work Visa
In the ICT method, after registering the company, provide the necessary documents for the ICT work visa and apply for it. If you are eligible for the Owner Operator program, apply for an LMIA license from Labor and Social Development Canada after registering your company. After receiving LMI approval, apply for Owner Operator work visa.
You are still half way there. After arriving in Canada, you need to set up your registered company. That is, hire employees, produce goods or provide services and make the company profitable. In some Canadian provinces, the necessary condition for starting a business and setting it up is to be a Canadian citizen or permanent resident. Therefore, be careful to choose a province for company registration that does not have such a condition, and as a foreign owner, you can start your own company.
After at least one year has passed since the start of the company’s activity and reaching the necessary profitability, you can apply for permanent residence in Canada. Residency is possible through company registration in Canada using the Express Entry system.
Express Entry has three immigration programs, and with one year of experience in managing your company, you can apply for permanent residence in Canada through the Canadian Experience Class program. Action through this program has conditions and is based on a rating system. Having management experience will add 200 points to the Express Entry score. One of the requirements for this program is to have a score of CLB7 or the equivalent of IELTS General 6 in all four skills of listening, writing, reading and speaking.
Buying a company in Canada
One of the ways to immigrate to Canada is to buy a company and business in Canada. The field of activity of the company can be in any field, but for obtaining permanent residence in Canada, some businesses are more interested in the Canadian Immigration Department.
Conditions for buying a company in Canada
In order to buy a company in Canada, you must own a business in your country or have at least three years of management experience. In addition, it is necessary to buy at least 51% of the shares of the Canadian company and have enough capital for its development.
For more information, visit the Buy Business in Canada page.
Company registration lawyer in Canada
To register a company in Canada, considering the complexity and specialized details of the work, it is better to seek help from an experienced lawyer, a member of the Canadian CICC Association. With years of experience in immigration through investment and company registration in Canada and having successful cases in this field, MasterVisa Canada International Company is ready to accept applicants interested in investment and company registration in Canada.
(mrvisacanadaa)
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