Canada

Company Formation in Ontario

Province of Ontario — Ministry of Public and Business Service Delivery (Ontario Business Registry)

Formation Time

1–2 business days

Min. Capital

No minimum

Corporate Tax

11.5% Ontario CIT (3.2% small business rate; 26.5% combined general rate with federal)

Foreign Ownership

100%

Overview

Ontario is Canada's economic heartland, generating nearly 40% of national GDP ($1.0 trillion CAD) and home to over 15 million residents. Toronto is the financial capital of Canada (home to the Toronto Stock Exchange, TSX, the 9th largest stock exchange in the world) and the second-largest financial center in North America after New York City. In a landmark legislative reform, **Ontario completely abolished the historic 25% Canadian resident director requirement in 2021** under Bill 213 (Better for People, Smarter for Business Act). As a result, foreign founders and international corporations can now establish an Ontario corporation under the Ontario Business Corporations Act (OBCA) with 100% foreign non-resident directors and 100% foreign shareholders. The Toronto-Waterloo tech corridor is the second-largest technology cluster in North America, featuring elite AI talent from the Vector Institute, University of Toronto, and University of Waterloo.

No resident director requirement

Toronto financial capital

TSX stock exchange hub

Vector Institute AI center

$0 annual report fee

Why Choose Ontario

No Canadian resident director requirement — 100% foreign directors permitted by statute since 2021

Toronto is the second-largest financial hub in North America and home to the TSX (Toronto Stock Exchange)

Generates nearly 40% of Canada's total economic output ($1.0 trillion CAD GDP)

Toronto-Waterloo innovation corridor is the fastest-growing tech ecosystem in North America

Competitive combined general corporate tax rate of 26.5% (12.2% combined for Canadian small businesses)

Zero annual state/provincial filing fees for the Ontario Annual Information Return

Instant electronic incorporation via the modern Ontario Business Registry (OBR)

Deep corporate banking with headquarters of all Big Six Canadian banks in downtown Toronto

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Ontario Corporation	100%	1 (no Canadian residency required)	None	11.5% Ontario CIT + 15% federal CIT (26.5% combined general rate)	Financial services, tech startups, venture capital, cross-border commercial trading
Extra-Provincial Corporation	100%	1	None	Taxed on income allocated to Ontario permanent establishment	Foreign or federal companies establishing a physical office or employing staff in Ontario

Step-by-Step Formation Process

Ontario NUANS Name Search

1 day

Generate official Ontario-specific name search report to clear corporate name.

Filing Articles of Incorporation via OBR

1–2 business days

Submit Articles of Incorporation electronically through the Ontario Business Registry.

Ontario Company Key & CRA Registration

1–2 days

Receive official Ontario Company Key and 9-digit CRA Business Number (BN).

Corporate Governance & By-laws

1–2 days

Adopt corporate by-laws, issue share certificates, and prepare minute book.

Corporate Commercial Bank Opening

3–7 business days

Open CAD/USD corporate accounts with major Toronto commercial banking institutions.

Costs & Fees

Government / License Fee	CAD 300+
Our Service Fee	USD 1,100 – 2,600
Annual Renewal	CAD 0+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Toronto is the headquarters city for Canada's Big Six banks. Bay Street banking headquarters offer the highest concentration of corporate finance and trade facilities in Canada.

Account Opening Time

1–2 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

RBC Royal Bank (Toronto HQ)TD Bank (Toronto HQ)BMO Financial Group (Toronto HQ)Scotiabank (Toronto HQ)CIBC (Toronto HQ)

Tax Overview

Corporate Tax

11.5% Ontario CIT + 15% federal CIT (26.5% combined general rate); 12.2% small business CCPC rate

Personal Income Tax

5.05%–13.16% Ontario provincial rates (plus Ontario surtax on higher earners)

VAT / Sales Tax

13% Harmonized Sales Tax (HST) administered federally by CRA

Capital Gains Tax

Standard Canadian capital gains tax rules apply

Withholding Tax

25% statutory non-resident withholding (reduced to 5%–15% under tax treaties)

Double Tax Treaties

94 countries

Ontario levies no capital tax on general corporations. The Ontario Annual Information Return is filed online through the Ontario Business Registry with a $0 state filing fee.

Frequently Asked Questions

Did Ontario eliminate the Canadian resident director requirement?

Yes! In 2021, the Ontario government passed Bill 213, which officially repealed the requirement that at least 25% of directors be resident Canadians. Today, 100% of the directors and shareholders of an Ontario corporation can be non-residents of Canada.

What is the Ontario Company Key?

The Company Key is a secure 9-digit code issued by the Ontario Ministry of Public and Business Service Delivery to the corporation upon registration. It grants authorized representatives electronic access to manage company details and filings in the Ontario Business Registry.

What is the combined corporate tax rate in Ontario?

The combined general corporate income tax rate in Ontario is 26.5% (15% federal plus 11.5% Ontario). For Canadian-Controlled Private Corporations (CCPCs) eligible for the small business deduction, the combined rate on the first $500,000 of active business income is just 12.2%.

How does the Harmonized Sales Tax (HST) work in Ontario?

Ontario uses a single Harmonized Sales Tax (HST) of 13%, combining the 5% federal GST with an 8% provincial tax. Businesses with global taxable sales exceeding $30,000 CAD must register for an HST account with the CRA and can claim input tax credits (ITCs) on business expenses.

Why is Toronto considered North America's fastest growing tech hub?

Toronto has added more tech jobs in recent years than Silicon Valley, Seattle, and New York combined. With world-renowned institutions like the Vector Institute for Artificial Intelligence and headquarters for Google Canada, Microsoft Canada, and Amazon, it has an immense density of technical talent.

Can foreign founders open a Toronto corporate bank account remotely?

Yes. Incorp International assists international clients in establishing CAD and USD multi-currency commercial accounts with major Canadian chartered banks without requiring an in-person visit to Toronto.