How to set up a company in Canada?
Prior to the engagement, you need to understand the process of setting up a corporation in Canada. Tetra Consultants advises you to read through this guide to fully understand the steps required on how to set up a company in Canada.
In essence, your engagement will be broken down into 4 phases:
- Planning and strategy
- Bank account opening
- Staying compliant
By systematically following the above 4 phases, you can expect to start conducting business with your Canadian company within 6 weeks. If you are looking to conduct Money Services Business, Tetra Consultants will assist you to secure the Canada MSB license.
Step 1: Planning and Strategy
- After understanding your business goals and activities, Tetra Consultants will recommend the most suitable corporate entity for you to carry out your business. Prior to setting up a Canadian company, you will be advised on the optimum paid-up share capital, corporate structure, legislations, and whether there is a need to apply for any licenses to operate your business.
- In most cases, the directors and shareholders are required to provide basic KYC documents. Some of these documents include the names of directors, certified true passport copies, proof of address, bank reference letter, and CV for our internal due diligence checks.
- All Canadian companies will require a local director. If required, Tetra Consultants will provide you with a Canadian nominee director to meet the requirements. Our legal team will draft the nominee agreement to be signed by all parties. This is to ensure that the nominee director does not have any power or authority in your company.
- Thereafter, Tetra Consultants will conduct a Canada corporation search to check the availability of your preferred company name with the Innovation, Science, and Economic Development Canada.
- For registration of trade names, we will also refer to the registry of the jurisdiction in which you intend to conduct business.
- According to the business activity and corporate structure, Tetra Consultants will also draft Articles of Incorporation, business plan, and other incorporation documents. The Articles of Incorporation will include your corporate name, share structure, restrictions, number of directors, and other relevant provisions.
- Generally, the Articles of Incorporation can be submitted in the official language of your choice (English or French). As such, no translation will be required.
Step 2: Incorporation
- Once you fully understand how to create a corporation in Canada, we will then proceed to file for registration with Canada Company Registry.
- On average, the application will be approved within 1 week. After receiving approval, Tetra Consultants will courier the Certificate of Incorporation, Memorandum and Articles of Association, and other corporate documents to your preferred address. If you need to find company registration number or any other business detail, you should refer to these documents.
- In the event your business activity requires an extra provincial license or any other licenses to legally conduct business in Canada, Tetra Consultants will assist with the license application. One popular option will be the Canada Money Service Business License.
Step 3: Bank Account Opening
- After your Canada company is successfully set up, Tetra Consultants will assist you in opening a corporate bank account. Our team has established partnerships with multiple reputable banks in Canada. Some of these banks include Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce.
- If you prefer to have a corporate bank account overseas, Tetra Consultants will assist you with opening an international offshore corporate bank account.
- Typically, a corporate bank account opening will take roughly 4 weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request a waiver.
- Once your account has been successfully opened, Tetra Consultants will courier the internet banking token and access codes to your preferred address.
Step 4: Staying Compliant
- Once the above has been completed, Tetra Consultants will continue to provide you with the necessary accounting and tax services to ensure that you can continue to legally conduct business while staying compliant with regulatory obligations.
- Our team of dedicated consultants will timely prepare your firm’s financial statements, corporate tax returns and manage bookkeeping on your behalf.
- Generally, corporate income tax is charged at 15%.
- Businesses are required to maintain proper books of account and upkeep the associated accounting documents for minimally 6 years.
- Our team of dedicated consultants will continue to clarify any doubts you may have concerning your company’s obligations.
Can a foreigner register a company in Canada?
- Yes, a foreigner can register a company in Canada. In order to expand an already established business, the company must complete the registration process of the chosen province to receive the extra provincial license.
- If you wish to start a new business while living in Canada, you must immigrate to Canada or become a Canadian citizen or permanent resident. To make it clearer, if you are a US citizen looking to start your business in Canada, you must complete immigration to Canada from USA.
- Contact us if you wish to know more about how to get residency in Canada or how to become a Canadian citizen.
How do I register a company in Canada?
- You may wonder how to set up a limited company in Canada. To do the same, you must follow these steps:
- Decide which type of business you wish to incorporate.
- Select and reserve your preferred business name.
- Register business with government:
- If you wish to register business federally, you must complete the Industry Canada Federal Incorporation
- If you wish to register only in a particular province, you must complete the provincial incorporation process.
- Apply for a business license, if required.
- Additional steps may be required, depending on the terms of the province of your choice. For example: if you want to incorporate your firm in Ontario, you may wonder how to set up a company in Ontario Canada.
- Contact us if you wish to discuss which province would be best suited for your business and how to create a corporation. Our team of experts will revert to you within 24 hours.
How do I verify a company in Canada?
- In order to verify a company in Canada, you can check the Corporations Canada website for the federally registered companies. On the other hand, you can check Canada’s business registries for provincially registered companies.
How much to set up a company in Canada?
- The total engagement fee charged will depend on the services you require from us. Our services include planning and strategizing with our clients, helping them through the incorporation process, ensuring you are compliant with the law, and more.
- This total cost includes the cost of setting up a company in Canada, which includes the basic registration fee and reserving the chosen name. Additional costs may include express filing.
Can I start a business without registering it in Canada?
- It depends on the business you wish to start. If you are a sole proprietor, using their legal name as a name for business, there is no need for registering it in Canada. However, you must register your business for any other form of business entity, after checking the requirements of the province location you have chosen.
- For example: if you are incorporating a small business in Ontario as a sole proprietor under your own legal name, you do not need to register the business.
Is doing business in Canada easy?
- According to the World Bank, Canada has the 18th rank out of 189 countries for the ease of doing business. With business-friendly laws and regulations and solid infrastructure, it may be easy for your company to continue its business in Canada.
How long does it take to register a company in Canada?
- With Tetra Consultants, the Canada company registration process will be completed within two weeks after which an additional four weeks are required for opening a bank account.
What is the most profitable business in Canada?
- With a profit of $12.1 billion, Wireless Telecommunications Carriers are the most profitable industry in Canada. This industry is not just limited to the manufacturing and selling of mobile phones but also services such as technological security, internet provider, and more.
How to set up a holding company in Canada?
- The process to set up a holding company in Canada is similar to the process to set up any business. However, instead of selecting and reserving a business name, a holding company can be issued a unique number. However, such a company cannot perform commercial business activities. Its primary purpose is to own assets or stocks in other firms called subsidiaries.
How to set up a company in BC Canada?
- The process to set up a company in British Columbia, Canada is the same as the basic process highlighted in the step-by-step guide that can be found on our website. Firstly, you must reserve your company name with the BC Registries and Online Services. Secondly, you must submit the required documents such as the Article of Incorporation and more and complete the application process through Corporate online.