Canada is a North American country consisting of 10 provinces and 3 territories. The capital is Ottawa. It is a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It is a member of the OECD and G8 and is one of the world’s top 10 trading nations with a highly globalized economy.
Incorporation of a Federal company in Canada carries several advantages over a company incorporated in one of the provinces, although some provinces offer tax breaks or concessions for certain business activities. A Federal company is perhaps viewed as a more prestigious and substantive entity and is certainly more attractive where engaging in business throughout Canada.
- TYPE OF COMPANY: Corporation
- COMPANY LAW: The Companies Acts 1931 – 1993
- SUFFIX TO DENOTE LIMITED LIABILITY: Limited; Ltd; Corporation; Corp; Incorporated; Inc.
- DIRECTORS: Only natural persons, corporate directors are not allowed. At least 25% of the directors must be Canadian residents. However, if a corporation has less than four directors, at least one director must be a Canadian resident – we can provide
- SECRETARY: Yes, a natural person of any residency or nationality – we can provide
- SHAREHOLDERS: Minimum one of any residency or nationality – we can provide
- CLASSES OF SHARE: Registered
- CAPITAL REQUIREMENTS: Minimum CD$1
- OWNERSHIP: 100% Foreign ownership allowed
- TIME TO INCORPORATE: 2 days
- REGISTERED OFFICE: May be located anywhere in Canada – we can provide
- ANNUAL RETURN: Yes
- ACCOUNTS: Yes
- DISCLOSURE: Yes
- TAXATION: Varies from 15% to 38%
- GOVERNMENT LICENCE FEE: US$350
- DOUBLE TAXATION TREATIES: 86
- LANGUAGE OF DOCUMENTATION: English and French
If you would like further information on setting up a Federal company in Canada or the formation of a Federal company or other Canadian corporate entities or require professional advice relating to taxation or the structuring and requirements of a Federal company in Canada, please contact us. We can also provide advice on establishing a subsidiary, joint venture or foreign company to carry on business in Federal Canada.
We can provide a wide range of support and administration services, bank introductions, nominee directors, nominee shareholders, virtual offices, accountancy and legal services. We can also advise on compliance with all the regulatory and statutory requirements.