Canada is recognized as one of the most attractive countries for doing business thanks to its economy and various programs to support entrepreneurs. For foreign investors and aspiring entrepreneurs, the country offers unique opportunities for scaling up internationally, access to highly qualified personnel, and preferential tax conditions. This article provides information on starting a Canadian business, relevant for 2025.
More detailed information about can a foreigner start a business in Canada can be found on the website cbg-a.com.
Choosing a legal form of a company
First, you need to determine the legal form - this determines the registration of the enterprise and its operation.
The following options are available in Canada:
- Corporation: the most popular among foreigners, it is most often used to expand a business operating in other jurisdictions. This type is divided into private (CCPC or OPC), public and extra-provincial companies;
- Partnership: suitable for joint projects. It can be full (General Partnership), limited (Limited Partnership) or limited liability (LLP). LLP is common among professionals (lawyers, accountants) and provides protection of partners' assets in case of litigation, unlike GP;
- Sole Proprietorship: a simple form, but assumes full personal liability of an individual.
Registered at the provincial level.
It is important to note that provinces have their own requirements. For example, British Columbia and New Brunswick have abolished the requirement for directors to be residents, which simplifies registration for non-residents.
Taxes and financial obligations
Canada's tax system consists of three levels: federal, provincial, and territorial.
Federal taxes are uniform throughout the country, while provincial and territorial rates vary by region. For example, the combined corporate tax rate for small businesses (CCPC) is 12.2% in Ontario (3.2% provincial + 9% federal), 19% (10% + 9%) in Alberta, and 18.5% in the Yukon Territory.
Additionally, it is worth knowing about the penalties for violations.
Thus, since 2025, the Beneficial Ownership Registry requirement has come into force: all companies are required to submit data on beneficiaries within 15 days of registration. The fine for non-compliance is $200,000.