(403) 452-9515

Ackah Law

Search Ackah Law...

Contact us

Contact Information

1 (403) 452-9515

1 (800) 932-1190

Book a Consultation

More Options...

How Non-Residents Can Open A Business in Canada

Blog posted on by Evelyn Ackah in Business Immigration to Canada and Business Immigration Law

How Non-Residents Can Open A Business in Canada

If you are a business owner but not a resident of Canada and want to grow your business and open a location in Canada, there are two main ways for existing foreign corporations to register to operate in Canada:

1. Open A Branch Office
To open a branch office a foreign corporation must apply as an extra-provincial or foreign corporation in each province in which the business intends to operate.

2. Incorporate a Subsidiary
A subsidiary is a Canadian corporation whose shares are held by a foreign parent company. A subsidiary can be incorporated federally or provincially. Compared to a branch office, incorporating a subsidiary gives the parent company limited liability from the actions of the subsidiary.

Are You A Foreign Business That Wants to Open A Business in Canada?

You do not need to be a Canadian citizen or resident to open a business or branch in Canada, says Cross Border and International Tax Expert James Belesiotis:

A non-resident does not have to be a resident to operate a business or branch in Canada however, the business might be subject to a higher tax. Privately held corporations enjoy a federal tax rate of 9% assuming it's a Canadian Controlled corporation (for income up to $ 500,000). A non-resident who does not become a resident of Canada (which may or may not involve specific conditions in their specific tax treaty) will experience an increase to the federal tax rate by 29% points or 38% - this computes to an additional federal tax liability of $ 145,000 before provincial tax is imposed.

Should a non-resident corporation deploy an employee to render services even for a single day in Canada triggers a resulting payroll withholding obligation as noted in Tax Regulation 102.

Non-residents performing non-employment in Canada is subject to Tax Regulation 105 and typically miss understood. A non-resident corporation engaged by another non-resident to perform services in Canada is subject to a 15% withholding requirement.

<BOOK A CONSULTATION

B2B Immigration Legal Guidance

The guidance of an experienced Canadian immigration lawyer can be very helpful if you are planning to incorporate a company in Canada as a non-resident. For example, different provinces have different residency requirements to open a business - and different tax rates:

  • Ontario requires that 25% of directors must be Canadian in order to incorporate.
  • In British Columbia
  • If 51% of the shareholders of a Canadian corporation are non-residents of Canada you will lose the small business tax deduction, and your corporate tax rate will increase to 26.5% instead of 15%.
  • In Ontario, profits distributed from a Canadian corporation to non-resident shareholders are subject to a withholding tax that can range from 5% to as high as 25%.

Learn about the benefits of using an immigration lawyer with the links provided below:

Why Choose Ackah Law?
Why Hire An Immigration Lawyer?

Have an immigration lawyer on your side:
Call Ackah Law BEFORE you cross the border: 587-602-0179.


Evelyn Ackah

Founder/Managing Lawyer

Ms. Ackah is passionate about immigration law because it focuses on people and relationships, which are at the core of her personal values. Starting her legal career as a corporate/commercial ...

More About Evelyn Ackah

U.S. Immigration Fee Increases Amid Work Visa Suspensions and USCIS Furloughs

The United States is implementing new immigration fee increases while suspending work visas and as the government agency who oversees visas is planning to furlough up to 75% of its ...

Read More

Moving Your Business to Calgary? Calgary Economic Development Means Business!

Relocating to a new country isn't easy. But at Ackah Business Immigration Law, our promise is to help you cross borders seamlessly and smooth your way to Canada. For our foreign corporate ...

Read More

What If Your New Employee Is Turned Away At The Border?

What's at risk if you DON'T hire a business immigration lawyer? Immigration rules and procedures are changing almost daily in Canada and the United States. Your business can lose ...

Read More

B2B Immigration Solutions for Expanding Your Business to Canada

Do you want to grow your business in Canada? Corporate immigration is about people - and the businesses that hire them. We transform lives by creating immigration opportunities ...

Read More

How Hong Kong Residents Can Move To Canada

China’s parliament passed a national security law for Hong Kong. Many Hong Kong residents may want to emigrate, and there are calls for Canada to liberalize its immigration policy ...

Read More

Updates for Employers of Temporary Foreign Workers

Canada has introduced two new policies benefitting employers and foreign workers with valid Temporary Foreign Worker (TFW) permits whose jobs have been impacted by COVID that will ...

Read More

I have had the pleasure of working with Evelyn Ackah on various immigration, LMIA, permanent residency and border issues for the past seven years. Evelyn and her team are the ultimate resources for any employer seeking to navigate the ever changing legal climate in a timely and professional manner. Evelyn’s wealth of knowledge, experience and industry connections coupled with her ability to simplify complex legal processes have made her my ‘go-to’ resource for all issues pertaining to business immigration.

– Eileen Marley, Human Resources Business Partner - Corporate and Concord

View All Testimonials