In order to establish a non-resident business in Canada, you will need to meet certain requirements. These may vary from one province to another and will depend upon the type of business you want to operate. If you are not a Canadian citizen, you may need to partner with someone or relocate to this country.
As a citizen
If you have a Canadian address, not a post office box, and are a Canadian citizen or landed immigrant, you may register your business as any of the permitted options, including sole proprietorship. The registration process will vary depending on the provincial requirements. If you plan to operate countrywide, you might want to consider a federal incorporation that will allow you to operate across the nation under the same name.
Not a citizen
Your options become more limited if you are not a Canadian citizen or landed immigrant.
• Partner with a Canadian living in Canada, using their address.
• Incorporate. You will still need a Canadian address but can form a Canadian controlled private corporation (CCPC) with the correct number of Canadians on your Board of Directors, meet all the other requirements, and you can still enjoy tax benefits. The procedural specifics, including number of Canadians on the Board, will vary depending on if you opt for a federal registration or the province.
Foreign Corporation
An existing corporation from another country can operate in Canada by:
• Opening a branch office. In order to accomplish this, the foreign corporation must apply for registration as an extra-provincial or foreign corporation in each province in which it intends to operate.
• Subsidiary. Establish yourself as a subsidiary of a Canadian corporation that has shares owned by a foreign, parent company. The subsidiary can be either federal or provincial. This option gives the parent company limited liability from the actions of the subsidiary.
With either option, Canadian director residency is required.
These are the basics for someone who intends to remain a nonresident. If you contemplate immigrating, you must apply through the Canadian immigration program. If you anticipate continuing to live outside Canada, you need to partner with one or more Canadian citizens to establish your business.
There is a start-up visa program. Its requirements are:
• Have a qualifying business
• Have a letter of support from a designated organization like an investor
• Meet Canadian language requirements
• Have sufficient capital or assets to settle and live in Canada before the business makes money.
If you come to Canada as a self-employed person, you must have relevant experience in either cultural activities or athletics, plus be able to make a significant contribution in one of those areas. Other considerations are education and age. Language is a major factor and you must be able to listen, speak, read, and write English or French.
Understanding the nuances of a non-resident incorporating in Canada can be difficult. The best option is to contact an accounting firm in Canada that is familiar with the procedures and processes. They can provide solid advice. They can also refer you to other professionals that will be necessary like attorneys.
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