Canada

Company Formation in Canada

Canada is located in North America and a perfect destination to set-up your company to cater to the entire North American market. YourGlobalPro can assist in Canada for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

Canada in the northern part of North America is a federal parliamentary democracy and constitutional monarchy. Canada’s border with the United States is having the world’s longest bi-national land border is world’s most ethnically diverse and multicultural nations. It is a developed country and has the tenth highest nominal per capita income globally and has the ninth highest ranking in the Human Development Index.

Canada

Doing Business Introduction

The Canada follows simple process for company registration procedures and the formalities to set up take approximately 1-2 working days.

As per Doing business report of The World Bank – Kingdom of Canada ranks 22 for 2017 survey. YourGlobalPro is able to assist its client with any type of company formation, trademark registration and other recurring services for your business in Canada.

Incorporation - Types of Business Entities

The various types of entity that can be incorporated in Canada are as mentioned below:

  • Sole Proprietorships [is owned by one person]
  • Partnerships [relationship among natural persons, corporations or other partnerships carrying on business]
  • Corporations [legal personality distinct from its shareholders and management]
  • Limited Liability [made up of one or more general partner]
  • Corporate Liability
  • Joint Venture [arrangement entered into by two or more parties (individuals, partnerships or corporations]

Time Frame for Company formation in Canada varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. It is possible to change the legal structure of your business as it expands and grows. YourGlobalPro estimate the time required to process the Company formation in Canada can be completed in 1-2 working days.

Benefits of Registration of a Company

Below are the advantages of Company formation in Canada:

  • The World Economic Forum rates Canada’s banking system as the world’s soundest
  • Highly-skilled and most highly-educated work force
  • World leader in fields as diverse as medical devices, digital gaming, and agri-food
  • Strategic location
  • Offer Investor Very favorable R&D tax credits and incentives

Tax Registration and Filing

Below are the applicable taxes in the region:

Federal Corporate Income Tax Rate 15%
Federal Capital Gains Tax Rate 7.5 %
Branch Tax Rate 15%
Goods and Services Tax (GST) 5%
Harmonized Sales Tax Up to 15%
Dividends 25 %
Interest 25 %
Royalties from Patents and Know-how 25 %
Branch Remittance Tax 25 %

Double Tax Treaty

Canada has 90 double taxation treaties with countries.

Trademark registration

Trademark Registration in Canada is valid for 15 years from the registration date and can be renewed for further 15 years within the validity date. Also, in case the trade mark is not used for more than three years continuously the same can be cancelled by the Authority on request of third party.

YourGlobalPro is fully equipped to assist you with the process of trade mark registration in Canada for your business in Canada. For assistance or advise in the matter of the trade mark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

  • In Canada, all provincial and territorial governments require registration of the business with them
  • In case branch is set up for the proposed business plan then the foreign corporation must register in all provinces in which it wishes to carry on business.
  • Prescribed company formation process and compliance needs to be adhered in Canada along with approval of shareholders
  • corporation are the limited liability of the shareholders
  • must file an annual information return with Canada Revenue Agency containing information about arm’s length transaction

Accounting Services

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Canada Business Set up as per the business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals can provide you auditing services for your business as required by your business.

Banking

The KYC requirement differs from Bank to Bank and need to be complied for the Bank account opening – and few key documents required to open your new business account. The banks offer advanced 24/7 online banking services. The time frame to open corporate accounts is approximately 1 to 3 weeks.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Canada.

Legal and Compliance

Below are the various Canada legal and compliance requirement to be followed by incorporated entities:

  • Do not impose foreign exchange control restrictions
  • After Company formation in Canada – your business will also require specific permits and licenses to be obtained from the federal, provincial or municipal governments, based on location, industry sector, and specific activities.
  • Must file an annual return with Corporations Canada every year- 60 day following the anniversary date
  • environmental legislation which are broad and extends to virtually all activity which contaminates or has the potential to contaminate the environment Compliance is mandatory for all corporations

HR and Employment Law and Immigration / VISA

In Canada, all provincial governments have enacted minimum employment standards legislation and various legislations in relation to human rights, occupational health and safety, workers’ compensation, pay equity, labour relations. Below are some of the important points in relation to HR & employment law in Canada:

  • Overtime pay at a rate of a minimum of 1.5 times the regular hourly wage
  • the maximum number of hours worked in a week is 48
  • In Canada individuals providing services labor market require a work permit – issued for a specific time period.
  • A foreign worker is required to apply to Immigration, Refugees, Citizenship Canada (IRCC) for a work permit only after Service Canada has provided a Labor Market Impact Assessment (LMIA) to the employer that a job may be offered to a foreign worker.

Country Statistics

Capital Ottawa
Largest City Toronto
Total Area 9,984,670 Sq. Km.
Population 35,151,728
Density 3.92 / Sq. Km.
Currency Canadian dollar ($) (CAD)
Government Federal Parliamentary Representative Democracy Under a Constitutional Monarchy
Official language English, French
Religion Roman Catholicism (38.7%)
Other Christian (28.5%)
Non-religious (23.9%)
Islam (3.2%)
Hinduism (1.5%)
Sikhism (1.4%)
Buddhism (1.1%)
Judaism (1.0%)
Other religions (0.6%)
Banks and Exchange Houses Hours Monday to Thursday - from 10 am to 4 pm Fridays - most are open until 6 pm

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