Canada is an important trading partners of the Unites States of America (USA) because of its similar language, educational system, economic and political policies. Any US companies who want to start a new company in another nation, always keep Canada at the top of the list. So, for a company registration process in Canada, one need to register him/herself as an “extra-provincial candidate”. This is the same process USA corporate law follows to undertake foreign investment process.
The corporate registration process is in Canada is primarily done by email or via online registration processes. This registration submission has to be done along with other supporting documents from the home jurisdiction. The supporting document must provide sufficient evidence of currently running company that the applicant owns in his/her native land.
Types of companies in Canada
Unlike other Asian nation where Limited Liability company is pretty popular, Canada doesn’t include LLC company in their corporate list. In other words, Canada does not have any Limited Liability Company (LLC) law but there are other company types. So, if you are an investor, who want to setup an LLC company in Canada, forget the idea and try some other company types which is valid in this nation. Canada’s general form of business are as follows:
- Sole proprietorship
- Limited liability Partnership (LLP)
Instead of LLC business which is not a valid in Canada, you are welcome to try the Limited Liability Partnership (LLP) business structure instead. In this type of business structure, partners have a limited liability on the basis of each partner’s contribution rate.
When starting an LLP in Canada, the contribution has to be made by the partners only when the business is at a functional phase. This type of company in Canada is commonly preferred and founded by professionals such as lawyers, accountants and doctors etc.
Rules and regulations of company setup in Canada
- The rules may or may not be different for different province in the country
- The Act of Canada Business Corporations allows various regulated professionals to conduct their business in Canada. such as chartered accountants, certified general accountants, lawyers, health professionals, social workers and veterinarians.
- The Canada Revenue Agency (CRA) treats American Limited Liability Companies as corporations which leads it to unexpected increase of taxation.
- When such corporation is active in Canada, both 15% taxation which is valid in USA along with Canadian taxes imposed by CRA is issued at a time on the tax payer. Which means, company has to pay double tax.
- The rules also suggest an appropriate name that has to be chosen for any type of company in Malaysia. The name should be easy but at the same time, unique. It is recommended to choose a name that doesn’t match with other company’s name in Canada. It should also resemble the particular business niche of the company as well.
Registration of company in Canada
Following are the typical steps of company registration in Canada. These steps may alter slightly in various provinces due to regional corporate policies. However, major steps remain all the same.
- A name has to be reserved when registering a company in Canada
- It is recommended to propose three trade names at a time. That will keep a backup name in case first choice gets rejected
- The name submission to the company registrar will cost you around $20
- Relevant company registration form should be filled and submitted along with three other recommended forms and other documents.
- The form drafting cost will go from $200 to up to $250
- Company registration process in Canada at this phase will require an Articles of Incorporation (AOI) which governs the business policies.
- AOI includes all the detail company policies and also specifies the number of members in the company liable and responsible under this particular company formation.
- Initial Registration procedure also need information about office address and First Board of Directors, name of all directors and signature of all members in this newly forming company.
- Lastly when the company name is registered, the (NUANS Newly Upgraded Automated Name Search) report should be generated.
Cost chart for company registration in Canada
Here detail cost evaluation has been systematically arranged in various cost tables that local and foreign investors in Canada must see before proceeding for investment in this country.
NUANS name search cost
This is an online based name search option for companies in Canada. Here you can see various reports regarding the name you have chosen for your business for certain charges.
|NUANS name search||Cost|
|NUANS Name Search Report (Basic)||$25.00|
|NUANS Name Search Report (Complete)||$39.00|
|NUANS Name Search with Name Decision||$59.00|
|Canada-wide Exact Match Name Pre-search||$19.00|
Business name registration cost in Canada
For name registration process of a company in Canada there is a separate government fee which you have to submit.
|Business name registration||Cost|
|Filing of Sole Proprietorship Registration||$49.00 + disbursements|
|Filing of Partnership Registration||$49.00 + disbursements|
|Filing of Business Name for Existing Corporation||$49.00 + disbursements|
Company incorporation service cost for Canadian residents
Here incorporation service costs for native Canadian investors are provided in detail.
|Federal Incorporation Basic Package||$85 + disbursements|
|Federal Incorporation Enhanced Package||$223 + disbursements|
|Federal Incorporation Complete Package||$303 + disbursements|
|BC Incorporation Basic Package||$85 + disbursements|
|BC Incorporation Enhanced Package||$223 + disbursements|
|BC Incorporation Complete Package||$303 + disbursements|
|Ontario Incorporation Basic Package||$85 + disbursements|
|Ontario Incorporation Enhanced Package||$223 + disbursements|
|Ontario Incorporation Complete Package||$303 + disbursements|
|New Brunswick Incorporation Basic Package||$85 + disbursements|
|New Brunswick Incorporation Enhanced Package||$223 + disbursements|
|New Brunswick Incorporation Complete Package||$303 + disbursements|
|Notarization of Set of Corporate Registration Documents||$150.00|
Company incorporation service cost for foreign Investors
The table below gives a detail cost evaluation of incorporation services for overseas investors who wants to start a trade in Canada.
|Ontario Extra-Provincial Corporation Basic Package||US$1,680.00|
|Ontario Extra-Provincial Corporation Complete Package||US$1,880.00|
|Annual renewal fee for Extra-Provincial Corporation||US$990.00|
|Incorporation of Canadian Corporation in British Columbia||US$1,990.00|
|Incorporation of Canadian Corporation in New Brains wick||US$1,990.00|
|Annual renewal fee for Corporation||US$990.00|
|Registration of Limited Partnership in Canada||US$1,990.00|
|Annual renewal fee for Limited Partnership||US$990.00|
|Canadian Virtual Office services for one year||US$500.00|
|Personal Bank Account in Canada||US$1,500.00|
|Corporate Bank Account in Canada||US$1,500.00|
|Merchant Account in Canada||US$500.00|
|Legalization of Documents by Embassy (embassy fees are extra)||US$550.00|
|Notarization of Set of Corporate Registration Documents||US$200.00|
Corporation cost in Canada
A USA LLC is once invested in Canada it is automatically considered as Corporation. Cost chart for the whole arrangement is given in the table below:
|Arrangement for corporation||Cost|
|Complete Set of Organizational Resolutions||$129.00|
|Filing of single change of corporate information (Directors, Officers, Office Address, etc.)||$99.00 + disbursements|
|Filing of single change, which requires Articles of Amendment (Company’s Name, etc.)||$249.00 + disbursements|
Dissolution of Corporation Cost
In case of dissolution of corporation in Canada, you have to count certain amount of cash. The price is all the same in major provinces in Canada.
|Dissolution of corporation (excluding gov’t fees)||Cost|
|Filing of Federal Corporation Dissolution||$249.00 + disbursements|
|Filing of BC Corporation Dissolution||$249.00 + disbursements|
|Filing of Ontario Corporation Dissolution||$249.00 + disbursements|
|Filing of New Brunswick Corporation Dissolution||$249.00 + disbursements|
Approximate Office supply costs
The cost table below gives a rough price list of office supplies which is mandatory once a company is set in Canada.
|Attaché Case Kit||$159.00|
|Share Certificates (Qty 10)||$30.00|
|Corporate Convenient Seal||$80.00|
Address of company registration service providers in Canada
In order to proceed for Company registration process in Canada or take any advices in relevant aspect, you have to be in connection with the authorized person. All provinces of Canada have their own company registry service offices which are equipped to assist and serve investors in their respected province. Below are some company registry service provider addresses in major provinces of Canada:
3B Commerce Place, 10155 102 St NW, Edmonton, AB T5J 4L4, Canada
BC (British Colombia)
British Colombia registry services
PO BOX 9431, STN PROV GOVT, VICTORIA BC V8W 9V3
1 250 387-7848 (Victoria Office)
1010, 405 Broadway, Winnipeg, MB R3C 3L6, Canada
Service Ontario Business Registration Branch
375 University Ave 2nd floor, Toronto, ON M5G 2J5, Canada
Registry of Joint Stock Companies
1505 Barrington St, Halifax, NS B3J 3Y6, Canada
These are some of the addresses to register LLC in Canada
How many shareholders are required to open a company in Canada?
Only 1. However, for supervisory board there should be a minimum 3 shareholders
How much a foreigner can invest for a company registration fee in Canada?
Registration fee comes around $200 to $1,680.
How to open a bank account for a foreign company in Canada?
A bank account can be opened automatically as soon as a foreign company is registered.
What other documents are required to start business in Canada as a foreigner?
A foreigner needs to come up with following documents:
- Documents of personal details
- All paperwork of company details
- Company legal structure document
- Tax registration certificate
- Visa permits
Certain company registration steps in Canada
Advantage of starting a business in Canada