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Guideline for company registration in Canada 2017

2017-10-13

If you want to register your foreign business in Canada, you will need to read the article, and then decide in which province or territory you want to register a business in Canada.

Canada has invested strategically in terms of education, training and literacy and welcomes business owners and those who have entrepreneurial interests, providing a wide range of opportunities. Thanks to its stable, independent governments and courts, an effective border system, skilled workers and a high standard of living, Canada is an excellent country for business registration.

Company registration in Canada - Canadian economy

Canada's economic and technological development was due to its close trading links with United States, which purchases about 80% of Canada's exports.
Using rich natural resources, Canada was able to develop on a par with the United States, growing rapidly from the primary (agricultural) economy into a rich economy based on services, with a strong industrial sector.

The most important for Canada's development was ratification of Free Trade Agreement between US and Canada (1989) that eliminates tax barriers for bilateral trading and promotes economic integration between two countries.

Company registration in US is beneficial for those who intend to conduct business with Canada. And vice versa – company registration in Canada with the United States. Later, the agreement on the North American Free Trade Agreement of 1994 led to trilateral cooperation on the continent, as a result of which Mexico embraced it. Canada has large surplus of exports, as the United States is the largest energy supplier, including oil, gas, electricity and uranium.

Business in Canada and business area

For those who want to open an IT company in Canada, telecommunications services are one of the excellent and modern. Underwater cables provide communication with the US and Europe. In 2011, there were more than 26 million mobile phones and more than 27 million Internet users.

In Canada, there is a well-developed aviation industry that offers international flights around the world. As part of the national airport system, there are 26 major airports, 726 certified airports supporting scheduled and non-scheduled flights, and 1,700 aerodromes supporting take-offs and landings. Air Canada, now privately owned, is the country's largest airline, as well as WestJet.

The Canadian banking sector is well developed. In 2011, there were 22 domestic banks, 26 subsidiaries of foreign banks and 29 foreign banks with branches in Canada. Two banks are state-owned: the National Bank of Canada and the Business Development Bank of Canada.

Types of companies in Canada

In addition to the following types of companies in Canada, the firms also can take the form of the individual entrepreneurs, joint ventures and trusts. It is also possible to open companies with unlimited liability in Nova Scotia, Alberta and British Columbia.

There are a number of corporate structures that can be registered in Canada.

Nevertheless, one should carefully consider the process of changing the type of corporation from one to another, as this can have negative tax consequences. There are the following types of corporation:

• Canadian-Controlled Private Corporation (CCPC);
• Co-operative Corporation;
• Public Corporation
• Corporation Controlled by Public Corporation.

Registration of Private Limited Liability Company in Canada

A private limited company in Canada is the most widely used business structure. This is separate legal entity, so it can enter into contracts and own property on its own behalf. Private LLC in Canada must have at least one director.

The type of registration depends on place where the company should operate in Canada. If a company needs to work in only one province, it will be enough to register there. However, if the company planned to work in whole Canada, it must be registered in accordance with federal law.

Documents required for the Private LLC in Canada registration include:

• Charter
• Legal address and Board of Directors
• If necessary, a report on the search for a name on NUANS, which is no more than 90 days from the date of the search

Public Limited Liability Company Registration in Canada

For the limited liability company registration in Canada, the minimum number of directors depends on provincial rules, but, as a rule, at least three.

The type of registration depends on place where the company should operate in Canada. If a company needs to work in only one province, it will be enough to register there. However, if the company planned to work in whole Canada, it must be registered in accordance with federal law.

Documents required for the Private LLC in Canada registration include:

• Charter
• Legal address and Board of Directors
• If necessary, a report on the search for a name on NUANS, which is no more than 90 days from the date of the search

Partnership registration in Canada

Partnership registration is available in the following forms:

• General partnerships
• Limited partnerships
• Limited liability partnerships

Partnership in Canada is a popular Canadian type of business for foreign investors. Canadian LP with foreign members who does not conduct business in Canada and does not receive income on the territory is not taxed. According to Canadian tax law, the Limited Partnership in Canada is not treated as a separate subject of taxation.

The founders ("partners") must pay taxes on the received profits by the LP company at the place of residence, if this is provided by the legislation of particular country.