Company formation in CanadaOverview
A Canadian business can be incorporated federally under the Canada Business Corporations Act or under the corporate statute of a province or territory. A federal corporation enjoys name protection across Canada and the right to carry on business in every province, although it must still register extra-provincially in each province where it actually operates. A provincial corporation is registered in its home province and registers extra-provincially elsewhere as needed.
Federal incorporation is filed online with Corporations Canada for CAD 200, with a standard processing time of one business day and an express option for an additional CAD 100. A named corporation requires a NUANS name search report; a numbered company does not. Each year the corporation files an annual return, which costs CAD 12 online. Changes to directors, registered office and individuals with significant control are filed free of charge.
Director residency is often the deciding factor for international founders. Under the CBCA, at least 25% of directors must be resident Canadians, and where there are fewer than four directors at least one must be a resident Canadian. Several provinces, including Ontario since July 2021 and British Columbia, impose no residency requirement on directors, which makes them common choices for foreign-owned companies. Director names and addresses for federal corporations are published in Corporations Canada's online database.
Transparency obligations have increased. Since 22 January 2024, federal corporations must file information on individuals with significant control with Corporations Canada, and part of it, including name, address for service and a description of control, is made public. Law enforcement and FINTRAC can access the full filing. Businesses also register with the Canada Revenue Agency for a business number and relevant tax accounts, and regulated activities, such as money services, require separate registration with FINTRAC.
Key benefits
- Stable common-law legal system and strong international reputation
- Fast, low-cost online incorporation at federal level
- Federal name protection across all provinces and territories
- Access to North American markets and an extensive tax treaty network
- Provincial options without director residency requirements
- Clear pathway to add regulatory registrations such as MSB status
- Credible jurisdiction for banking and commercial counterparties
Requirements
- Choice of federal or provincial jurisdiction aligned with where the business will operate
- Corporate name cleared by a NUANS report, or a numbered company
- Articles of incorporation, including share structure and any restrictions
- Registered office address in the province or territory named in the articles
- Directors meeting the residency rules of the chosen statute
- Register of individuals with significant control, filed with Corporations Canada for federal companies
- Extra-provincial registration in each province where business is carried on
- Business number and tax registrations with the Canada Revenue Agency
- Bank account opening with full KYC on directors and beneficial owners
Licence options & capital
Federal corporation (CBCA)
CAD 200 online
National name protection and the right to operate in all provinces. Requires at least 25% resident Canadian directors and public ISC disclosure.
Ontario corporation (OBCA)
Provincial fees apply
No director residency requirement since July 2021. Suitable for foreign-owned businesses centred on Ontario.
British Columbia corporation
Provincial fees apply
No director residency requirement and a straightforward online registry. Often chosen for Pacific-facing businesses.
Extra-provincial registration
Per province
Required for an existing corporation, federal or provincial, that carries on business in another province.
Step-by-step process
- 1
Structure planning
Decide on federal or provincial incorporation, share classes and ownership, taking account of tax residency and director residency.
- 2
Name and articles
Obtain a NUANS report for a named company and prepare the articles of incorporation.
- 3
Incorporation filing
File online with Corporations Canada or the provincial registry, together with registered office and director details.
- 4
Organisational steps
Adopt by-laws, issue shares, set up the minute book, securities register and ISC register.
- 5
Registrations
Register extra-provincially where required and obtain a CRA business number and tax accounts.
- 6
Banking and compliance
Open a corporate bank account and diarise annual returns, ISC updates and tax filings.
Typical documents
- NUANS name search report (for a named corporation)
- Articles of incorporation
- Registered office address and first board of directors filing
- Identity documents and residential addresses of directors
- Information on individuals with significant control
- By-laws and organisational resolutions
- Share subscriptions and securities register
- Business plan and source of funds evidence for bank onboarding
How Legal Wealth helps
Legal Wealth helps international entrepreneurs and families choose the right Canadian vehicle, coordinate incorporation and post-incorporation steps, and prepare for public beneficial ownership disclosure in a considered way. Where the company will carry on regulated activity, we plan the related registrations at the outset, and we align the structure with the owners' tax residence, residence planning and succession objectives. Contact info@legalwealthglobal.com.
Enquire with Legal WealthFrequently asked questions
Can a non-resident own a Canadian company?
Yes. There are no general nationality restrictions on shareholders. The constraint is director residency under the CBCA, which can be avoided by incorporating in a province without a residency rule.
How fast is federal incorporation?
Corporations Canada's standard processing for online incorporation is one business day, or four business hours with express service for an additional CAD 100.
Is beneficial ownership public in Canada?
For federal corporations, yes in part. Since 22 January 2024, the name, address for service and description of control of individuals with significant control are publicly available. A corporation may apply for an exemption from publication in limited circumstances.
Does a federal company need provincial registration?
Yes, a federal corporation must register extra-provincially in each province or territory where it carries on business, and provincial fees apply.
What ongoing filings are required?
An annual return (CAD 12 online for federal companies), updates to directors, registered office and ISC information, and annual tax filings with the Canada Revenue Agency.
Do I need a licence for financial services in Canada?
Money services businesses must register with FINTRAC, and some provinces, such as Quebec, have their own licensing rules. Securities and lending activities have separate provincial regimes.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
