Company Formation Canada:
Do you want to do business in Canada but don’t know how to start? Mostly foreign investors choose the establishment of a Canadian Private Corporation as the most appropriate corporate structure. But there are also a lot of alternatives. For example, some entrepreneurs prefer a Canadian Public Corporation. Foreign legal entities who want to start a business in Canada have a choice: they can establish a Canadian Branch of a Foreign corporation or they can establish a subsidiary.
What is the Canadian Private Corporation?
When investors decide to start a business in Canada, they usually use such corporate structure as the Canadian Private Corporation. But each territory and province have some special features. So, in one territory private corporations may have 1 director and shareholder, in the other territory or province a private corporation may require at least 2 directors and shareholders. Who can be the director of a private corporation? First of all, the director must be an individual and in some provinces, the director should be a resident of Canada but there are also provinces where it isn’t required to be a Canadian resident.
All Canadian Private Corporations shouldn’t forget that in the end of the company name they must put such words as “Limited, Limitee, Corporation, Incorporated, Incorporee, Ltd., Inc. Or Corp.”
What is the Canadian Public Corporation?
There are some common features between the Canadian Public Corporation and the Canadian Private Corporation. For example, the Canadian Public Corporation also requires 2 or 1 directors depending on the province or territories where this corporation is situated. What about appointments, a Canadian Public Corporation may appoint a secretary who mustn’t be a resident of Canada.
What do we know about Canadian Branches of Foreign Corporations?
Foreign corporations have a right to start a business in Canada, to do it they should set up branch offices in the preferred provinces or territories. Another important point for foreign companies is that they should conduct business as all others legal entities. The first step foreign companies should make is to register as an extra-provincial corporation in the particular territory. But each province has some special features which should foreign companies know before setting up business there. In Quebec, for example, you must adopt a French business name according to the local trade charter.
Let’s have a look which types of corporate structures are the most popular in Canadian provinces. In Ontario, Quebec, British Colombia, Alberta, Manitoba and Saskatchewan the most popular corporate structure is a private corporation. Also in al these provinces, it takes 2 weeks to set the company up. Among all the banks in Ontario entrepreneurs choose Scotiabank as a corporate bank, in Quebec it is RBC Royal Bank, in British Colombia the most popular is CIBC, in Alberta it is Bank of Montreal and in Saskatchewan people choose Scotiabank as a corporate bank.
Interested in registering a company in canada? Contact us
Other Canadian Company Formation related Services:
Canadian Resident Director