How to Set Up a Company in Canada as a Foreigner (2026)

Federal vs provincial incorporation

Canada has two levels of company registration:

Federal Incorporation (Corporations Canada): A federally incorporated company can operate across all provinces. Governed by the Canada Business Corporations Act (CBCA). No residency requirement for directors at the federal level (a significant advantage over most Canadian provinces).

Provincial Incorporation: Each province has its own company registry. Some provinces (Ontario, BC, Alberta, Quebec) have Canadian-resident director requirements. Others (Nova Scotia, New Brunswick, PEI) do not.

Most international founders choose federal incorporation: No Canadian-resident director requirement, operates nationally, internationally recognised.

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Step 1: Federal incorporation via Corporations Canada

Apply at: ised-isde.canada.ca (Corporations Canada online portal)

• Requirements:
• Company name (including searches via NUANS — Newly Upgraded Automated Name Search — a database of registered names; cost ~CAD 15–40)
• Registered office address in Canada
• At least 1 director (for federal CBCA corporation: 25% of directors must be Canadian residents IF more than 4 directors; for 1–4 directors, at least 1 must be Canadian resident — unless the company is a CBCA "distributing corporation" — for most private SMEs: at least 1 Canadian-resident director)
• Classes of shares
• No minimum capital

Federal filing fee: CAD 250 (online)

Timeline: 1–5 business days

Note on director residency: The CBCA requires a majority of directors to be Canadian residents for most private corporations. Specifically: at least 25% of directors must be Canadian residents (for boards of 4+), or if there are fewer than 4 directors, at least 1 must be Canadian resident. Nominee director services are available from Canadian law firms and company services providers for CAD 2,000–5,000/year.

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Step 2: Provincial registration (extra-provincial)

Even with federal incorporation, if you want to operate in a specific province (open a bank account, hire employees there, sign leases), you typically need to register the federal corporation as an "extra-provincial corporation" in that province.

Ontario extra-provincial registration: CAD 330 (online)

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Corporate tax rates

Small Business Deduction (SBD): The federal rate drops to 9% for Canadian-Controlled Private Corporations (CCPCs) on the first CAD 500,000 of active business income. Important: a CCPC is a private corporation controlled by Canadian residents. A company controlled by a non-resident is NOT a CCPC and does NOT qualify for the 9% SBD rate.

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Step 3: Banking

• Canadian banking for non-residents can be done at:
• RBC, TD, Scotiabank, BMO, CIBC: Major banks with international business divisions. Require presence; significant documentation. 4–8 weeks.
• ATB Financial (Alberta): Regional bank; more accessible for Alberta-incorporated companies
• Wise Business: Works as an alternative for CAD payments

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Real cost (Year 1)