Starting a small business in Canada as a newcomer or foreign owner: the actual requirements, in order
Canada does not have one registration. It has a sequence of them, each with its own authority. Here is the sequence, what each one asks for, and where it is done.
The short answer
- Choose the structure (sole proprietorship, partnership, corporation) and the jurisdiction (federal or provincial). A corporation is the usual choice for a foreign owner because banks, customers and immigration programmes expect one.
- Register: a name search, articles of incorporation, a registered office in Canada, directors. Federal incorporation has director residency requirements; Ontario does not.
- Get the business number and the programme accounts you need from the Canada Revenue Agency: corporate tax, GST/HST, payroll, import/export.
- Then the bank account, provincial and municipal licences, insurance, and the registrations your sector needs. The Accounting Doc runs this sequence for founders abroad at a fixed price.
Structure and jurisdiction
Three structures: sole proprietorship, partnership, corporation. A foreign owner almost always incorporates, because a Canadian corporation is what a bank will open an account for, what a buyer will contract with, and what every business immigration stream looks at. Federal incorporation (Corporations Canada) gives the name Canada-wide and carries director residency rules; provincial incorporation (Ontario, BC and the rest) is simpler where the business operates in one province, and Ontario has no director residency requirement. The choice is the first decision and it is made with an adviser, not after the fact.
Official: Corporations Canada for federal; each province's business registry for provincial.
Registration
- Name: a NUANS or provincial name search, or a numbered company.
- Articles of incorporation: share structure, restrictions, directors.
- Registered office address in Canada (a real address where documents can be served; The Accounting Doc provides one at 1465 Pickering Parkway for its clients).
- Initial return and the corporate records book: directors, officers, shareholders, the individuals with significant control register.
Incorporation itself is quick. What takes time is everything that depends on it.
Business number and tax accounts
The Canada Revenue Agency issues a nine-digit business number and the programme accounts under it: corporate income tax (RC), GST/HST (RT) once taxable sales pass the small supplier threshold or voluntarily earlier, payroll (RP) before the first employee is paid, import/export (RM) before goods cross the border. Register before the first invoice, not after.
Official: CRA, registering your business. Rates, thresholds and filing deadlines are the CRA's; The Accounting Doc files them.
Bank, licences, insurance
The bank account is the slow step for a foreign-owned company: identification of every director and significant owner, the ownership chart, the business plan, often a visit. Start it the day the certificate arrives. Provincial and municipal licences depend on the sector and the city (food, health, construction, retail, transport each have their own). Commercial insurance before the lease. Payroll registration and a workers' compensation account (WSIB in Ontario) before the first hire.
What a foreign owner can and cannot do
A non-resident can own 100% of a Canadian corporation. Owning is not the same as working in it: managing the business from inside Canada needs a work permit or permanent residence (see the immigration pathways guide). Acquiring an existing Canadian business is subject to the Investment Canada Act notification or review (see the large-scale requirements guide). Certain sectors (banking, telecom, broadcasting, airlines) carry foreign ownership limits of their own.
What it costs and how long it takes
Government fees are small; professional fees are where quotes differ. The Accounting Doc publishes fixed prices in CAD for incorporation, registrations and the first year's bookkeeping and tax for international founders, with the registered office included: accountingdoc.ca/pricing. Timing: incorporation in days, CRA accounts in days to weeks, the bank in weeks. Plan the first invoice around the bank.
Checklist
- Structure and jurisdiction decided with an adviser
- Name search done
- Articles filed, registered office in Canada
- Business number and the right programme accounts
- Bank account started the same week
- Licences, insurance, payroll and WSIB before the first hire
- Work status for anyone managing from inside Canada
Mistakes we see
- Registering a sole proprietorship because it was quicker, then re-doing it as a corporation for the bank
- Collecting GST/HST without an account, or missing the threshold
- A registered office that is a mailbox
- Assuming ownership gives the right to work in Canada
Sources
WeOpen.ca is an independent initiative, not a government agency. Programmes and rules are named for context; the official pages in force prevail over anything on this page, and eligibility is confirmed by a qualified adviser. Checked 13 November 2026.