Starting a business in Canada

The main types of Canadian corporations are:

1. Federal Corporation

• Canada-wide name protection, allowing you to operate across the country.

• Suitable for businesses that wish to operate in multiple provinces.

2. Provincial Corporation

• A company enjoys name protection within a particular province and can only operate within that province.

• Additional registrations are required when doing business in other provinces.

3. Limited Liability Company (LLC)

• Canada does not have LLCs, but foreign companies can achieve a similar effect by choosing a Canadian partnership structure.

Advantages of setting up a Canadian company:

• Cross-border trade channels: Canada has signed free trade agreements with the United States and Mexico, which is conducive to the expansion of the North American market.

• Tax advantages: Canada offers attractive corporate tax rates, with tax incentives available to certain regions and industries.

• Highly developed infrastructure: including transportation, financial and technical support, making it easy for companies to operate locally.

Requirements for establishing a company:

1. Shareholders and Directors

• At least one shareholder and director are required, and different provinces have different residency requirements for directors; a federal corporation must have at least 25% of its directors be Canadian residents.

2. Registered capital

• There is no specific minimum capital requirement and the capital structure is determined by the company itself.

3. Registered office address

• The company must have a registered office address in Canada to receive official documents.

4. Company Name

• The company name must pass a name check to ensure that the name is not used by other companies.