Start a Business in Canada as a Foreigner
How to start a business in Canada as a foreigner or non-resident is a common question. To register and start a business in Canada without being a Citizen or a Permanent resident of Canada is possible. Canada is a vast country with ten provinces and three territories, each having it own rules and business registration processes and fee. Moreover, a business can be registered on a Federal level as well.
Before the process of starting a business in Canada as a foreigner, one of the key considerations should be where the business is to be registered. This depends mainly on the type of company you wish to start, the availability of resources for your business and so on. However, if you are aiming an online business, the place of business can be flexible,
On a broad outlook, there are three ways to start a business in Canada as a foreigner.
1. Start a business by immigration.
2. Start as a subsidiary company of your already established business or open a branch.
3. Start a Canadian owned/operated business without moving into Canada.
4. Start a business by immigration.
Start a business to immigrate to Canada.
Can I start a business in Canada as a foreigner and then immigrate ?
Immigrating for the purpose of starting a business in Canada is a viable option if you are:
Innovative & can create employment opportunities for the people in Canada
You are a global player and have the track record of competing in global level in products or services.
Self-employed person in the field of arts, entertainment and sports.
Immigration for the purpose of starting a business needs you to qualify for one of the approved visa programs for this type of entry,
1. Start-up Visa Program.
This is for entrepreneurs who wish to start a business by moving to Canada. Proof of finance and Canadian language proficiency is required. More information on this can be found here:
https://www.canada.ca/en/immigration-refugees-citizenship/services/immigrate-canada/start-visa/designated-organizations.html
2. Self-employed Person’s Program.
Self-employed people who could qualify for this visa application include actors, musicians, and athletes. Applications are evaluated based on experience, education, age, language abilities, and adaptability, and are also subject to medical and security checks.
Start a subsidiary company.
A subsidiary company is a Canadian entity controlled by a parent corporation, located outside of Canada, by means of shareholding. In other words, the parent company is the sole shareholder of the Canadian corporation. In this scenario, the Canadian Corporation is an incorporated entity which is registered Federally or provincially owned by a foreign entity as its shareholders. The parent company enjoys limited liabilities from the action of the subsidiary.
Opening a branch.
To open and register a branch office, the foreign corporation must make an application for registration as an extra-provincial or foreign corporation in the province in which the business intends to operate.
Where to start a business in Canada if you are a foreigner.
To start a business in Canada as a foreigner, among other considerations, where to open your company should be a serious consideration. Canada is a vast country with regions differing vastly as well.
In Canada, there are 10 provinces and three territories.
The provinces are ( in alphabetical order): Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan. The three territories (controlled by Federal Government) are Northwest Territories, Nunavut, and Yukon.
As of December 2020, there were 1.22 million employer businesses in Canada with 98% of them are small businesses.
PROVINCES TOTAL PER 1000
| Ontario | 449,770 | 37.6 |
| Quebec | 256,504 | 36.8 |
| British Columbia | 190,923 | 44.7 |
| Alberta | 162,359 | 47.1 |
| Saskatchewan | 41,578 | 45.9 |
| Manitoba | 40,539 | 37.9 |
| Nova Scotia | 30,175 | 37.1 |
| New Brunswick | 25,325 | 39.2 |
| Newfoundland and Labrador | 16,596 | 38 |
| Prince Edward Island | 6,317 | 48.7 |
| Territories | 4,207 | 45.2 |
(Courtesy Innovation, Science and Economic Development Canada.): https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03147.html#how-SME
Best places in Canada to start a business
Toronto, Ontario
This is one of the best places to start a business in Toronto. It is a larger city comparable to New York. It is also one of Canada’s tech hubs and home to globally competitive companies. . Toronto has a fantastic business climate due to the amount of competition around and availability of talent around here. There is also a lot of support for small businesses in Toronto as well.
Not only is Toronto one of the fastest growing places in all of North America, there are also a diverse amount of languages spoken and is home to 8 of the most world-renowned universities. With over 6.4 million different people and well over $4 million is investments in 2020 alone, it is an amazing environment for those in tech as well as entrepreneurs.
To submit an application for Ontario Business Name registration / Corporation registration, visit this Government link: https://www.ontario.ca/page/ontario-business-registry
Edmonton, Alberta
Another great Canadian city for a start-up is Edmonton. Traditionally known foroil and gas industry as well as the energy sector. These sectors in themselves make up a large portion of the entire country’s financials but, with the decline in industrial development and the drop in oil prices, it has opened up to allow for a more diverse economy.
With Alberta’s economy growing and the fact it has higher paying jobs as well as lower housing prices, it is attracting many Canadians to this area. Not only that, Edmonton has 10 different post-secondary schools. With that many graduates every year, there are plenty of workers which is always a bonus for any new businesses.
To register a business in Alberta, visit one of the local Registries office. To find a registry office near you or one which provides online service, visit this page: https://www.alberta.ca/lookup/find-a-registry-agent.aspx
Calgary, Alberta
Just like Edmonton, Calgary is also one of the most popular cities right now. Not only does Calgary consist of an average population between 25 and 54, they also have one of the highest average household incomes at $104, 530 annually. On top of all of this, Calgary is a tourist hot spot, which makes it a prime location for businesses.
Not only that, Calgary has many consumer markets that are extremely popular. This can range anywhere from auto and transportation to consumer products. The city itself is super supportive of the small business community and often offers grants and other benefits to small business owners.
To register a business in Alberta, visit one of the local Registries office. To find a registry office near you or one which provides online service, visit this page: https://www.alberta.ca/lookup/find-a-registry-agent.aspx
Vancouver, B.C.
Vancouver is a renowned city with a fantastic climate and aesthetics. There are many reasons why Vancouver is one of the best places to start a business. The first is that it is one of the most popular cities to live in. Vancouver provide a lot of support in the form of grants and tax write-offs for start-ups. This startup business foundation really helps new entrepreneurs and leaves them high on the startup index. They add significant value to the job market that has so much talent.
Vancouver has some of the most talented IT professionals and software developers. Also, over half of the city’s population have a college or university degree. Depending on the type of business you start, this can be very beneficial. On top of all of this, there is more of a work life balance in Vancouver than most other Canadian cities, and it is close to Silicon Valley.
Port of Vancouver is the biggest major port in Canada, trading over $200 billion in goods yearly with 170 economies around the globe. Goods from around the world, particularly in high quantities from Asia, enter the Port of Vancouver in huge volumes, creating a high demand for transportation companies in Vancouver to get goods to their final destinations in Canada and the USA.
You can register your business with British Columbia Government from their ‘Business Registration Online ‘website. For more information visit this page: https://www.bconline.gov.bc.ca/
Waterloo, Ontario
Waterloo has one of the fastest growing communities in Ontario and it often referred to as “Silicon Valley of the North”. With so many Universities in the region as well, it is a prime location to look for qualified employees. There is no specific industry that is currently booming, it’s a combination of many. This is great for small businesses because it increases the chances of success.
To submit an application for Ontario Business Name registration / Corporation registration, visit this Government link: https://www.ontario.ca/page/ontario-business-registry
Winnipeg , Manitoba
Winnipeg is starting to become a really popular city to start out with a business idea. This is mainly due to the low cost of living. Manitoba is one of the less expensive provinces therefore, it is attracting a lot of new talent. Another advantage that Winnipeg has is that it is located in the heart of North America. This location advantage can make a large difference when it comes to shipping.
Not only is Winnipeg a strong business choice, but it is also a great city for work-life balance. Not only is it a great place to experience things, it thrives off of its business, artistic and community development. It provides a great mix of great quality of life and affordability, which is perfect for starting a business.
For information and online submission for business registrations, visit this Government web page: http://www.companiesoffice.gov.mb.ca/starting_manitoba_corporation.html
Halifax, Nova Scotia
Halifax is the capital of Nova Scotia as well as Canada’s largest city. It has a population of over 370,000 which is a great selling point if you are thinking about starting a business in this area.
The Port of Halifax is one of the major ports in Canada, priding itself on being data-driven, and capturing data on shipments every 15 minutes or less. The Port of Halifax is connected to more than 150 countries.
Traditionally known for Shipping, fishing, forestry and mining, In recent years, there has been a large growth in Halifax in the areas of Science, Industry and education.
Strategic geographic location close to United States and Europe, Competitive business cost, generous R&D tax incentives, clean water & air – All of these things make starting a business in Halifax a great idea.
For information and online submission for business registrations, visit this Government web page: https://beta.novascotia.ca/register-extra-provincial-federal-or-foreign-corporation
Montreal, Quebec
If you can overcome the initial language barrier – Quebec is a predominantly French speaking place – then starting a business in Montreal has its advantages. World class talents from 15 institutions and more than 100 colleges, largest university research facilities, easy access to US, Europe and markets, exemptions from custom duties and availability of subsidies and interest-free loans are some of its advantages.
Port of Montreal is a highly advanced port in terms of technology, AI-driven and is considered one of the most cutting edge ports in the world and connected to 140 countries.
For information and online submission for business registrations, visit this Government web page (available only in French):
https://ville.montreal-est.qc.ca/
Conclusion
While there are plenty of business opportunities throughout all of Canada, the best place to start a business in Canada depends upon the type of business and target customers. In generally we can conclude as follows:
Best city to open a business: Toronto’
Cheapest place to start a business: Calgary or Edmonton’
Best geographically located city: Vancouver.
Provincial Government information on starting businesses
Alberta: For Information about starting a business by foreigners in Alberta, visit the Official Service Alberta website. The other option is to visit an Alberta Registry office located throughout the province. For more information visit Service Alberta website.
https://www.alberta.ca/service-alberta.aspx
British Columbia: If you are considering the British Columbia province for starting a business in Canada for foreigners, all the information you need is on the British Columbia official website called BC Online.
https://www2.gov.bc.ca/gov/content/employment-business/business/managing-a-business/starting-a-business
Manitoba: The procedures to be followed in Manitoba, just as in other provinces, are different. You need to request a name reservation and approval, complete the Articles of Incorporation and provide other relevant information to the Manitoba Companies Office.
https://www.gov.mb.ca/business/startingsmart/index.html
New Brunswick: if you are starting a business in Canada as a foreigner in the New Brunswick province, the procedures to be followed are filling out forms, payment of fees, registering with the Corporate Registry. Use the Corporate Registry division of the Service New Brunswick website for more details.
https://www2.snb.ca/content/snb/en/sites/corporate-registry.html
Newfoundland and Labrador: There are three file forms to be filled, forms 24, 25, and 26. The Newfoundland and Labrador province website has detailed information on incorporating a business.
https://www.findnewfoundlandlabrador.com/invest/doing-business-in-nl/setting-up-a-business/
Northwest Territories: Another best place to start a business in Canada is the Northwest Territories. Register the name of your business and seek approval with Corporate Registries, provide a certificate of compliance/ good standing, and pay the registration fees.
https://www.investnwt.com/sites/default/files/howtostartbusinessnwt.pdf
Nova Scotia: Register the name of your business, apply through Access Nova Scotia Centre. The rest of the procedure is listed on the Nova Scotia website or Access Nova Scotia.
https://novascotia.ca/sns/access/business/ready-register-business.asp
Nunavut: Visit the website of Nunavut Territory, register your business name with the Corporate Registries office, and make payment.
https://atuqtuarvik.com/financing/starting-business
Ontario: As stated on the Ontario website, it is required for foreigners to register their business name after verifying and this registration must be renewed every five years in Ontario. Make the payment, and the acquired Master Business License should be proof of name registration. The Ministry of Finance should be contacted to ensure registration.
Prince Edward Island: Visit Prince Edward Island website for more information. (note that the link may redirect your search to the latest extra-provincial resources because they often update their documents)
Quebec: In case you don’t speak or understand French, employ a French translator. Navigate the Démarrer une entreprise service, which is only provided in French. Check the Quebec website for more information.
Saskatchewan: When starting a business in Canada for foreigners and looking at operating from Saskatchewan, just visit the official Saskatchewan website for detailed information on how to go about it.
Yukon: Visit the Yukon website and then submit a Name Reservation form and a Periodic Report (if applicable).
We offer registration services for non-residents. Click the button below for more information & setup your company today !