To register a company in Canada, you make two decisions before anything else: incorporate federally or provincially, and whether you need a Canadian-resident director. Those two choices set your cost, your name protection, and whether a non-resident founder can even proceed on their own. Most guides skip both.
The Government of Canada frames registration as four parts: incorporate, get a Business Number, register extra-provincially, and get permits, per Canada.ca’s guide to registering a corporation. This post follows that structure and answers the residency question directly.
What Does Registering a Company in Canada Involve?
Registering means four things: incorporate (federally or provincially), get a Business Number (BN) and tax accounts from the Canada Revenue Agency (CRA), register extra-provincially in every province where you operate, and get any permits. Incorporation is fast. The tax accounts and banking are the real timeline. Start with the route comparison below.
| Route | Government fee (CAD) | Resident-director rule | Source |
|---|---|---|---|
| Federal (Canada Business Corporations Act) | $200 online | 25% resident Canadians (min. 1 if fewer than 4 directors) | Corporations Canada |
| Ontario (OBCA) | $300 online | None since July 5, 2021 | Ontario Business Central |
| British Columbia (BCA) | $350 + $30 name request | None | BC Corporate Online |
| Alberta (ABCA) | ~$275 via registry agent | None; Alberta agent for service required | Alberta.ca |
Should You Incorporate Federally or Provincially?
Incorporate federally for a national brand if you can meet the 25% resident-director rule; incorporate provincially if you operate in one province or have no Canadian director. Federal incorporation runs through Corporations Canada under the Canada Business Corporations Act (CBCA). It gives nationwide name protection. It does not exempt you from registering in each province where you carry on business.
Provincial incorporation protects your name only in that province. It is often cheaper overall for single-province operations, and several provinces have no residency rule at all.
Rule of thumb, sharpened:
- One province for the next 12 to 24 months, choose provincial.
- National brand and you can meet 25% residency, choose federal.
- Non-resident with no Canadian director, choose provincial in a no-residency province.
Do I Need a Canadian Resident Director?
Federally, yes: the CBCA requires at least 25% of directors to be resident Canadians, or at least one if you have fewer than four directors, under CBCA section 105(3). Regulated sectors need a majority. Provincially, several jurisdictions dropped the rule entirely, which is the practical path for non-residents.
| Jurisdiction | Resident-director requirement | Status | Source |
|---|---|---|---|
| Federal (CBCA) | 25% (min. 1 if fewer than 4) | Current | Justice Laws, s.105(3) |
| Ontario | None | Repealed July 5, 2021 (Bill 213) | Stikeman Elliott |
| Alberta | None; Alberta agent for service required | Repealed March 29, 2021 | Osler |
| British Columbia | None | Current (BCA) | BC Corporate Online |
| Quebec | None (French-language obligations apply) | Current | Charter of the French Language |
| New Brunswick / Nova Scotia / PEI | None | Current | Provincial corporations acts |
| Saskatchewan | None; Saskatchewan attorney required if no resident director/officer | New SBCA | MLT Aikins |
| Manitoba | 25% (min. 1 if 3 or fewer) | Current | MLT Aikins |
| Newfoundland and Labrador | 25% (min. 1 if fewer than 4) | Current | MLT Aikins |
Ontario removed its rule through Bill 213, the Better for People, Smarter for Business Act, 2020, which received Royal Assent on December 7, 2020, per Blakes. Alberta now requires an Alberta-resident agent for service in place of the old 25% rule.
Which Province Should You Incorporate In?
For non-residents, choose British Columbia, Ontario, or Alberta, decided by where you actually operate. All three dropped the director-residency requirement, so a foreign founder can own and direct the company without appointing a local director. Quebec also has no residency rule but adds French-language obligations. The table compares the common picks.
| Province | Government fee (CAD) | Resident-director rule | Name search system | Notes |
|---|---|---|---|---|
| British Columbia | $350 + $30 name request | None | BC Name Request (not NUANS) | Popular with non-residents (BC Corporate Online) |
| Ontario | $300 | None since 2021 | NUANS required for named corps | Ontario Business Registry |
| Alberta | ~$275 via registry agent | None | Alberta NUANS required | Alberta-resident agent for service |
| Quebec | Varies (Registraire des entreprises du Québec) | None | Quebec REQ name system | French-language obligations under the Charter of the French Language |
Corporation, Sole Proprietorship, or Partnership: Which Structure Should You Choose?
Choose a corporation. It is a separate legal entity and the standard vehicle for fundraising, hiring, and cross-border operations. A sole proprietorship is cheap but offers no liability shield and is effectively unavailable to non-residents. A partnership works for some professional ventures but carries personal liability. For international founders, the corporation is the practical choice every time.
Named or Numbered Corporation: Do You Need a NUANS Name Search Report?
A NUANS (Newly Upgraded Automated Name Search) report is required for named corporations federally and in Ontario; numbered corporations never need one, in any jurisdiction. Federal online incorporation builds the name search into the filing, so a separate report is only needed for numbered-name or paper filings, per Corporations Canada.
A separately ordered federal NUANS report costs $13.80, per the ISED NUANS federal report page, and is valid for 90 days. Ontario named corporations order a NUANS report from a private search provider, which costs more and varies. British Columbia and Quebec use their own name systems, not NUANS. Practical tip: start numbered and rename later once branding is final. You can screen candidates first with Commenda’s company name checker.
How Do You Incorporate a Business in Canada Online? (Step by Step)
You incorporate online in six mechanical steps once the decisions above are made: prepare your articles, appoint directors, secure an office, file, get your CRA accounts, and register extra-provincially. The decisions on jurisdiction, structure, and naming are covered in the sections above, so the steps stay short.
Step 1: Prepare your Articles of Incorporation
Your Articles of Incorporation set out the corporation name, registered office address, number of directors (or a range), share structure (classes, rights, restrictions), and any restrictions on business activities. Keep the share structure simple unless you have a clear reason not to. Complex share classes create friction with banks, investors, and future legal work.
Step 2: Appoint directors and confirm residency compliance
Confirm your board meets the residency rule for your chosen jurisdiction (see the residency table above). Federal boards need 25% resident Canadians. Ontario, BC, and Alberta boards do not.
Step 3: Secure a Canadian registered office address
Every Canadian corporation must maintain a real physical registered office in its jurisdiction of incorporation. A P.O. box does not qualify. It must be able to receive legal and government correspondence.
Step 4: File online
File through the Corporations Canada Online Filing Centre for $200, or through the provincial registry, such as the Ontario Business Registry for $300. A certificate of incorporation is issued on approval.
Step 5: Get your CRA Business Number and tax accounts
Incorporation does not set up your taxes. Register with the Canada Revenue Agency for a Business Number, a corporate income tax account, and GST/HST and payroll accounts as needed. This step drives invoicing and payroll readiness.
Step 6: Register extra-provincially and get permits
Register in each additional province where you operate, and obtain any municipal or industry permits. Both are covered in the dedicated sections below.
How Much Does It Cost to Register a Company in Canada?
The cheapest path is a numbered federal corporation at $200, the lowest government fee, filed online with Corporations Canada. Total cost depends on your province of operation, because extra-provincial registration and a registered-office service add to it. Every figure below comes from a government fee schedule.
| Item | Cost (CAD) | Source |
|---|---|---|
| Federal online incorporation | $200 | Corporations Canada |
| Federal 4-hour express add-on | +$100 ($300 total) | Corporations Canada |
| Federal NUANS name report | $13.80 | ISED NUANS |
| Federal annual return | $12 per year | Corporations Canada |
| Ontario incorporation (online) | $300 | Ontario Business Central |
| British Columbia incorporation | $350 + $30 name request | BC Corporate Online |
| BC extra-provincial registration | $350 | BC Corporate Online |
| Alberta incorporation | ~$275 (registry agent fee extra) | Alberta.ca |
How Long Does It Take to Register a Company in Canada?
Federal online incorporation takes about one business day, with a 4-hour express option for an extra $100, per Corporations Canada. Ontario and BC online filings typically clear in one to two business days. Incorporation is the fast part. The CRA Business Number and the bank account are the real timeline.
| Milestone | Typical online timing | Source |
|---|---|---|
| Federal incorporation (standard) | ~1 business day | Corporations Canada |
| Federal incorporation (express) | 4 hours (+$100) | Corporations Canada |
| Ontario / BC online filing | 1–2 business days | Provincial online registries |
| CRA Business Number and tax accounts | Immediate to a few days | Canada Revenue Agency |
| Bank account (non-resident) | Weeks, varies by bank | See the non-resident section below |
What Is Extra-Provincial Registration and When Is It Mandatory?
Extra-provincial registration is mandatory, not optional, in every province where your corporation “carries on business.” Typical statutory triggers are an office, warehouse, or other place of business, resident employees or agents, or a provincial business address or phone listing. Each province defines it in its own statute.
A federal corporation does not get to “operate nationwide” automatically. It must still register in each province where it operates, per Canada.ca. Fees vary by province; BC charges $350, for example. Several western provinces waive these fees reciprocally under the New West Partnership Trade Agreement (NWPTA).
What Happens After You Incorporate?
Incorporation is the start of compliance, not the end. A Canadian corporation owes annual returns, tax filings, and record-keeping from day one, even if it is dormant. The obligations below apply whether or not you have revenue.
When Do You Have to Register for GST/HST?
GST/HST (Goods and Services Tax / Harmonized Sales Tax) registration becomes mandatory once your taxable revenues exceed $30,000 over four consecutive calendar quarters, the small-supplier threshold, per the CRA’s when to register for GST/HST guidance. GST is 5% federally, and HST reaches 15% in some provinces. You can register voluntarily earlier to claim input tax credits.
Which Permits and Licenses Do You Need?
Incorporation creates the corporation, not permission to operate. Depending on your activity and location, you may need municipal business licenses, professional or industry-specific licensing, and permits for regulated activities. Check requirements in every province where you carry on business.
What Are the Ongoing Corporate Obligations?
Every corporation must file an annual return with its registry, which is separate from the tax return, and file a T2 corporate income tax return each year, even when dormant. You must also keep a minute book. Track deadlines across jurisdictions with a compliance calendar.
Can a Non-Resident Register a Company in Canada?
Yes. A non-resident can own 100% of a Canadian corporation; the residency rule applies to directors, not shareholders. The real constraints are three: the director-residency rule (solved by incorporating in BC, Ontario, or Alberta), a compliant Canadian registered office, and banking. Banking is the variable bottleneck, measured in weeks.
To open a business bank account, expect to provide your incorporation documents, Business Number, registered office details, ownership and control information, and director/officer identification. In-person identity verification requirements vary by bank; some require at least one director to appear in person. No single reliable average timeline exists, so plan for weeks, not days. The documents above shorten the process.
Common pitfalls for non-residents:
- Choosing federal incorporation without planning for the 25% residency rule.
- Using a non-compliant registered office address.
- Forming without clear ownership and signing authority.
- Assuming you can operate nationwide without extra-provincial registration.
- Leaving CRA Business Number and GST/HST planning until after invoicing.
- Confusing owning a company with permission to work in Canada.
Founders from specific countries can follow the country-specific guides: register a company in Canada from the USA, from the UK, from Australia, and from Ireland. If you are expanding a foreign parent, see setting up a subsidiary in Canada.
Why Incorporate in Canada?
Canada’s federal general corporate tax rate is 15% on active business income, per the CRA corporation tax rates. Provincial tax stacks on top; in Ontario the combined general rate lands near 26.5%. The headline 9% small-business rate applies only to Canadian-Controlled Private Corporations (CCPCs) on their first $500,000 of income.
A corporation controlled by non-residents is not a CCPC and does not get the 9% rate, so most non-resident-owned companies should model the general rate. Canada also gives tariff-advantaged access to the United States and Mexico under the United States-Mexico-Canada Agreement (USMCA).
How Commenda Helps You Register a Company in Canada
Registering in Canada is an operational setup, not a paperwork task. Commenda’s incorporation service handles jurisdiction choice, filing, a compliant registered office, CRA Business Number and tax-account coordination, and ongoing compliance, so your corporation can invoice, bank, and hire without exceptions. It sits inside a broader platform that also manages your Canada entity and subsidiaries alongside your other markets.
If you are weighing an entity against a contractor arrangement first, run the numbers with the entity vs. EOR calculator. When you are ready, book a demo to get a jurisdiction recommendation matched to your ownership structure on the call.
