Why Register a Company in Canada?
- Canada has signed over a dozen free trade agreements with most of the developed and developing countries – so companies registered in Canada benefit from tax advantages and market access that come along with these accords.
- Canada has double taxation avoidance treaties with nearly 100 countries including the United States, Singapore, Germany, France, India, Russia and the United Arab Emirates. These lead to a minimization in the withholding tax payable by a Canadian business.
- To start a business in Canada, just 1 director and 1 shareholder are required. Also, there is no restriction on their respective nationalities.
- The banking system in Canada is highly advanced, and as such, it is simple for Canadian companies to transact over corporate bank accounts internationally.
Process of Registering a Company in Canada
Here are the steps to register a company in Canada:
- Decide upon a name for your business, and check for its availability in the province you wish to set up your business in.
- Obtain a business number (BN) from the Canada Revenue Agency (CRA). BN is a 15-digit account number that identifies your company to federal and provincial governments.
- Decide as to whether your company would be incorporated provincially or federally. Provincial incorporation applies to a single state in Canada, while federal incorporation allows one to do business under the same name in all provinces and territories, but is more expensive and demanding.
- Register for a Goods and Services Tax (GST) or Harmonized Sales Tax (HST) account. If your annual revenue is over $30,000, then this is mandatory. Many companies with less revenue volunteer to register as well, because once a business has a GST/HST account, it can get the taxes it pays as a company refunded by the government.