Start Business In Canada

for Indian Entrepreneurs

Start and Structure Your Business in Canada From India

Planning to enter the Canadian market, serve Canadian customers, expand your Indian company, or build a North American presence?

Starting a company business in Canada can be an attractive option for Indian entrepreneurs, startups, exporters, consultants, technology companies and established businesses. But the most important decision is not registering a company. It is choosing the right corporate statute, province, ownership structure, tax approach and compliance framework before you begin because in Canada those choices are governed by different Acts that impose different requirements on the same business.

For an Indian founder there is a further layer: FEMA, ODI and RBI reporting on the India side, alongside Canadian tax, banking and ongoing corporate compliance.
This page sets out what the law actually requires, with the section behind each requirement, so you can verify it before you commit capital.

At Comply Globally, we help Indian businesses establish and manage their Canadian presence with support across incorporation, tax coordination, banking, cross-border compliance and India-side requirements.

Get a structure-first assessment before you incorporate. —

Why Start a Business in Canada?

Canada can be relevant for Indian businesses that want a credible North American operating presence without relocating the whole business.

A Canadian corporation is a separate legal person. Under s.15(1) of the Canada Business Corporations Act (CBCA) a corporation has the capacity and the rights, powers and privileges of a natural person, so it can contract, own assets, borrow and continue independently of changes in its ownership. Under s.9 CBCA, the corporation comes into existence on the date shown in the certificate of incorporation — not before.

For an Indian business, common reasons to establish a Canadian entity include entering the Canadian market, serving Canadian or North American customers, running a local sales or service operation, setting up a subsidiary of an Indian company, expanding an IT, SaaS or consulting business, establishing an import-export or trading operation, building a Canadian technology or R&D operation, hiring or contracting locally, and creating a base for North American expansion.

But Canada is not a one-size-fits-all jurisdiction. It is fourteen corporate statutes — one federal, thirteen provincial and territorial — and they differ on exactly the points a non-resident founder cares about.

Can an Indian Citizen Start a Business in Canada?

Yes. But incorporation, taxation and immigration are separate questions.

One of the most common misconceptions is that you must first become a Canadian citizen or permanent resident to establish a business. That is not the correct way to look at it. No Canadian corporate statute restricts foreign shareholding in an ordinary private corporation.
Separate four questions that are routinely collapsed into one:

Owning a Canadian company does not give you a work permit, permanent residence or citizenship.

This is the opposite of what most Indian founders assume.

Federal incorporation sounds like the bigger, safer choice, and for name protection it often is. But for an Indian founder with no Canadian-resident director available, federal incorporation imposes a governance requirement that Ontario and British Columbia do not. Appointing a nominee director to satisfy s.105(3) CBCA is a real arrangement with real consequences — that person has statutory duties and personal liabilities under the Act — and it should never be treated as a formality bought for a fee.

If you cannot name a resident Canadian director you are comfortable appointing, the question is not how to find one. It is whether you should be incorporating federally at all.

Older incorporation blogs still say an Ontario corporation requires a Canadian-resident director. That advice has been wrong since 5 July 2021, and it is the most common outdated claim in this market.

What Type of Business Can You Register in Canada?

Canadian law provides corporations, sole proprietorships, partnerships and cooperatives. For an international founder wanting limited liability and a scalable structure, the corporation deserves the closest review.

A corporation is a separate legal entity from its shareholders under s.15(1) CBCA and the equivalent provincial provisions. Shareholders generally have limited liability. This suits Indian Pvt Ltd companies opening a Canadian subsidiary, international startups, SaaS and technology businesses, consulting and professional services firms, trading and e-commerce companies, import-export businesses and businesses seeking investors.

Does Canada Have an LLC Business Structure?

“LLC business Canada” is a common search, and the honest answer is that no Canadian jurisdiction offers the US-style LLC. Canada uses corporations, partnerships and sole proprietorships.

So when an Indian entrepreneur says “I want to open an LLC in Canada”, the more useful question is: which Canadian entity gives me the liability protection, ownership flexibility and tax treatment I am looking for? For most founders the answer is a Canadian corporation.

There is a further trap worth naming. The Canada Revenue Agency generally treats a US LLC as a corporation for Canadian tax purposes, which can create mismatches where the same entity is treated as fiscally transparent in its home country. Using a US LLC as the vehicle to hold a Canadian business is therefore a structuring decision with treaty consequences, not a shortcut.

Factor	Canadian corporation	US LLC
Common Canadian structure	Yes	No Canadian equivalent
Separate legal entity	Yes — s.15(1) CBCA	Yes
Limited liability	Generally yes	Yes
Federal incorporation available	Yes — CBCA	No
Provincial incorporation available	Yes	No
Canadian tax characterisation	Corporation	Generally treated as a corporation by the CRA, with treaty complications

Federal vs Provincial Company Formation in Canada

This is the most consequential decision before incorporation, and for a non-resident founder it turns on three things that have nothing to do with prestige: who can sit on the board, what becomes public about your ownership, and where you actually intend to operate.

Federal corporation

A federal corporation is incorporated under the CBCA through Corporations Canada. It gives nationwide corporate name protection and the right to carry on business throughout Canada, subject to extra-provincial registration in the provinces where you operate.

Two federal-only requirements matter for an Indian owner. First, the resident Canadian director requirement in s.105(3) CBCA. Second, the beneficial ownership regime described below, under which information about individuals with significant control is filed with Corporations Canada and, since 22 January 2024, made publicly accessible.

Provincial corporation

A provincial corporation may fit better where operations are concentrated in one province, the commercial activity is local, or provincial rules suit the operating model. Ontario and British Columbia impose no director residency requirement.

Ontario private corporations must create and maintain a register of individuals with significant control under amendments to the OBCA in force from 1 January 2023, but that register is maintained by the corporation rather than filed on a public federal register. For a family-owned Indian group that is a genuine and legitimate difference, and it is worth deciding on deliberately rather than by accident.

The cheapest filing is not the best structure. The question is which statute imposes requirements you can actually meet.

Ontario vs Federal: which is better for an Indian entrepreneur?
There is no universal winner, but the comparison changes once the residency and transparency rules are in the table.

Requirement	Federal (CBCA)	Ontario (OBCA)
Resident Canadian director	Required — at least 25% of directors, and at least one where there are fewer than four (s.105(3) CBCA)	No Canadian equivalent
Beneficial ownership	ISC register maintained, filed with Corporations Canada and publicly accessible since 22 January 2024	ISC register maintained by the corporation since 1 January 2023; not filed on a public register
Name protection	Nationwide	Primarily provincial
Operating across Canada	Yes, with extra-provincial registration where required	Primarily Ontario, with registration elsewhere where required
Registry	Corporations Canada	Ontario Business Registry
Best fit	Multi-province or national strategy, where a resident Canadian director is available	Ontario or GTA-focused operations, and non-resident boards

Our approach
We do not recommend federal incorporation because it sounds bigger. We ask where your customers are, where management will operate, where employees will sit, whether you expect to expand into several provinces, whether the Canadian company will be a subsidiary of an Indian company, and — first — whether you have a resident Canadian you are genuinely willing to appoint as a director. Then we choose the statute.

Sixteen criteria across the four routes, with the provision behind each. Director residency, beneficial ownership publicity, tax treatment and India-side FEMA treatment side by side.

Ontario Canada Business Setup

Ontario is one of Canada's major commercial centres and includes Toronto, Mississauga, Ottawa and Waterloo. It is particularly relevant for technology companies, IT services, consulting, financial services, e-commerce, manufacturing, professional services, import-export businesses, startups and any business targeting the Greater Toronto Area.

Ontario corporations are governed by the Business Corporations Act (Ontario). Since the repeal of s.118(3) on 5 July 2021, an Ontario corporation may be incorporated and managed with an entirely non-resident board, which is why Ontario has become a default choice for foreign-owned Canadian subsidiaries.

Ontario is not automatically the answer. If you will operate in several provinces, the extra-provincial registrations required in each of them may cost more than the difference the residency rule saved you.

Company Formation in Canada From India: Step-by-Step

Incorporation is the first layer, not the project.

Step 1: Understand the business model

“I want a Canadian company to invoice Canadian customers.” “I want my Indian IT company to establish a Canadian subsidiary.” “I want to sell products in Canada.” These are different use cases and can require different structures, different tax treatment and different India-side filings.

Step 2: Choose the statute and the jurisdiction

Compare operating location, expansion plans, name requirements, board composition and transparency. For a non-resident board, s.105(3) CBCA is usually the deciding provision.

Step 3: Select the business name

The name must meet the applicable corporate naming requirements. Under the federal online system a corporate name search is integrated into the incorporation process for word-name applications rather than requiring a separate NUANS report before filing. A numbered company is available where the name is not commercially important.

Incorporating a name does not give you trademark rights. If the brand matters, that is a separate application under the Trademarks Act.

Step 4: Prepare incorporation documents

s.6(1) CBCA sets out what the articles of incorporation must state: the corporate name, the province where the registered office is to be situated, the classes and maximum number of shares, any restrictions on share transfers, the number of directors, and any restriction on the business the corporation may carry on. s.19 CBCA requires the corporation to maintain a registered office in the province specified in the articles.

You will also need shareholder and director information, identification, information on individuals with significant control, business activity details and, for a corporate parent, the Indian company's constitutional documents and a board resolution.

Step 4: Prepare incorporation documents

Every decision to settle before filing, the documents required from each shareholder and director, the ISC determination worksheet, the banking pack and the India-side filing sequence — each with the provision behind it.

Step 5: Incorporate

The articles of incorporation are filed with Corporations Canada or the provincial registry. s.8 CBCA provides for the issue of a certificate of incorporation and s.9 provides that the corporation comes into existence on the date shown on it.

s.14(1) CBCA matters commercially and is routinely overlooked: a person who enters into a written contract in the name of, or on behalf of, a corporation before it comes into existence is personally bound by it and entitled to its benefits. The corporation may adopt the contract after it exists under s.14(2), and only then does the personal liability fall away. Signing a lease, a customer contract or a supplier agreement before the certificate issues puts that obligation on the individual who signed.

The current federal online incorporation fee is CAD 200, with an optional express service at an additional CAD 100, and Corporations Canada states an online processing standard of one business day. Professional fees, registered office, accounting, banking and tax costs are separate.

Step 6: Business Number and CRA accounts

Corporations incorporated federally and in certain provinces including Ontario are automatically assigned a Business Number and a corporation income tax program account through incorporation. Depending on activity you may also need GST/HST, payroll, import-export and other CRA program accounts. Register based on what the business actually does rather than opening every available account.

Step 7: The Investment Canada Act notification

This is the filing almost no incorporation provider mentions, and it applies to the great majority of Indian-owned Canadian start-ups.

Under the Investment Canada Act, an investment by a non-Canadian to establish a new Canadian business is subject to notification. s.12 ICA requires the non-Canadian investing to give notice to the Director of Investments at any time before implementation or within thirty days afterwards. It is a notification, not an approval — for a normal commercial business below the review thresholds it is an administrative filing that takes little effort. Missing it is nonetheless a failure to comply with a federal statute, and it is the kind of gap that surfaces later during diligence, a financing or an exit.

Separately, the Act allows the government to review any investment by a non-Canadian on national security grounds, including the establishment of a new Canadian business, and that power is not limited by the monetary thresholds.

GST/HST Registration for Indian-Owned Businesses

s.240(1) of the Excise Tax Act requires every person who makes taxable supplies in Canada in the course of a commercial activity to register, other than a small supplier and, relevantly, a non-resident person who does not carry on business in Canada. The small supplier threshold is CAD 30,000 of taxable supplies.
Two points change the analysis for an Indian group.

First, a Canadian corporation you incorporate is a Canadian resident for these purposes and registers like any other Canadian business. Second, if you decide to invoice Canadian customers directly from the Indian company instead, s.240(6) ETA requires a non-resident registrant without a permanent establishment in Canada to provide and maintain security with the CRA, in an amount and form satisfactory to the Minister. That security requirement is a working-capital cost that rarely appears in any comparison between “invoice from India” and “incorporate in Canada”, and it frequently changes the answer.

A separate simplified registration regime applies to non-residents supplying digital products and services to Canadian consumers. It does not permit input tax credits, which matters if you incur Canadian costs.

For SaaS companies, digital services, consultants, e-commerce businesses, importers, exporters and Indian companies billing Canadian clients, the GST/HST analysis should be done transaction by transaction, because it turns on the place of supply and not on where you are registered.

Canada Corporate Tax for Indian-Owned Companies

The single most expensive assumption Indian founders make about Canada is that the 9% small business rate will apply to them. In most Indian-owned structures it does not, and the reason is statutory.

How the federal rate is buil

s.123(1) of the Income Tax Act sets the basic federal corporate rate at 38%. s.124(1) provides a 10% federal abatement on income earned in a province. s.123.4 provides the general rate reduction of 13%. The result is the general federal rate of 15%.

s.125(1) then provides the small business deduction — an additional 19% reduction on qualifying active business income up to the business limit, which is CAD 500,000 — producing the 9% federal rate. But s.125(1) is available only to a corporation that was a Canadian-controlled private corporation throughout the year.

Why an Indian-owned corporation is usually not a CCPC

“Canadian-controlled private corporation” is defined in s.125(7) ITA. A CCPC is a private corporation resident in Canada that is not controlled, directly or indirectly in any manner whatever, by one or more non-resident persons, by public corporations, or by any combination of them.

A Canadian corporation wholly owned by an Indian company, or by an Indian resident individual, is controlled by a non-resident. It is therefore not a CCPC, and the small business deduction is not available to it — no matter how small it is, how privately held it is, or that it was incorporated in Canada.

Two consequences follow that founders discover late. The corporation pays the general 15% federal rate on its active business income from the first dollar. And because the extended balance-due period is tied to CCPC status, a non-CCPC generally has a shorter period after its year end to pay the balance of tax than a CCPC does, even though the return itself remains due six months after the year end under s.150(1)(a).

Control is tested continuously and is not limited to share ownership: rights and options can deem control under the related provisions of s.251. If a structure is being designed specifically around CCPC status, it needs proper tax advice rather than a page like this one.

Ontario and the combined rate

Ontario’s general corporate income tax rate is 11.5%, producing a general combined rate of approximately 26.5% for corporations subject to the general rates. The actual outcome varies by corporation type, income type and incentives.

Do not choose a province on the headline rate. Where the company genuinely operates, where management takes place, where employees and customers are, physical presence, provincial registrations, tax residency, permanent establishment and related-party transactions all bear on the result. A low-rate province only helps when the underlying structure is commercially and legally defensible.

Can You Run a Canadian Company From India?

Often yes — but the answer creates a tax question rather than removing one.

s.250(4)(a) ITA deems a corporation incorporated in Canada after 26 April 1965 to be resident in Canada for the Act. Your Canadian corporation is a Canadian tax resident on its worldwide income regardless of where the board sits, and incorporating in Canada while managing from India does not put the company outside Canadian tax.

The reverse risk is the live one. If the company’s real decisions are taken in India, it can also be treated as tax resident in India, because s.6(3) of the Income-tax Act, 1961 treats a foreign company as resident in India where its place of effective management is in India. That produces a dual-resident company, and the position then has to be resolved under the India–Canada tax treaty. It is a resolvable problem and an expensive one to discover after the fact.

So consider where strategic management happens, who signs contracts, where employees work, where services are delivered, where customers are located, whether the company has a permanent establishment, and whether the business has genuine Canadian substance. A corporation should not be created as a paper company without a real commercial purpose.

Can an Indian Company Open a Canadian Subsidiary?

Yes, and it is the most common expansion model. An Indian parent can hold 100% of the Canadian corporation; the shareholding is not restricted by Canadian corporate law. The Canadian subsidiary can then handle local sales, customer contracts, hiring, marketing, banking, distribution, service delivery, procurement and North American expansion.

The parent-subsidiary relationship needs to be structured, not assumed:
Intercompany services and transfer pricing. s.247 ITA requires transactions between the Canadian company and a non-arm’s-length non-resident to be on arm’s-length terms, with contemporaneous documentation, and provides for adjustments and penalties where they are not. Management fees, technology charges and cost recharges from India are exactly what this provision is aimed at.

Repatriation. s.212(2) ITA imposes a 25% withholding tax on dividends paid by a Canadian corporation to a non-resident, reduced where the India–Canada treaty applies. Relief is not automatic: s.215 makes the Canadian payer liable to withhold and remit, and the CRA expects the payer to hold valid documentation of the recipient’s entitlement to the treaty rate before applying it. Remittance is due by the fifteenth day of the month following payment.

Services performed in Canada. Where the Indian parent’s personnel perform services in Canada for the Canadian company, Regulation 105 requires 15% withholding on the fees, regardless of whether the parent is ultimately taxable in Canada. It is recovered by filing, but the cash-flow effect is immediate and it surprises almost everyone the first time.

Intellectual property and funding. Who owns the software, brand and patents, and whether the Canadian company is funded by equity, debt or operating transfers, both change the tax and the FEMA analysis.

India-Side FEMA & ODI Compliance for a Canadian Company

For an Indian resident or Indian company investing in a Canadian business, the Canadian filing is one side of the transaction. India’s outbound regime is the other, and it is dated and enforceable.
It rests on three instruments issued on 22 August 2022 — the Foreign Exchange Management (Overseas Investment) Rules, 2022, the Foreign Exchange Management (Overseas Investment) Regulations, 2022, and the Overseas Investment Directions, 2022 — consolidated for authorised dealer banks in RBI Master Direction No. 15/2024-25 dated 24 July 2024. Acquiring 10% or more of the equity of the Canadian corporation, or any stake carrying control, is Overseas Direct Investment.

Obligation	When	Why it bites
FC through the AD bank, and allotment of a UIN	At the financial commitment or the first remittance, whichever is earlier	No Canadian equivalent
The first ODI cannot be made before Form FC is filed and the UIN allotted. Filing after the wire has gone is already late.	Within six months of remittance, under regulation 9(1) of the OI Regulations, 2022	If it is not filed, the funds remitted must be repatriated within the same six months.
Annual Performance Report for the Canadian entity	By 31 December each year, on the audited accounts	Not required only where the holding is under 10% without control and there is no other financial commitment.
Annual Return on Foreign Liabilities and Assets	By 15 July each year on the RBI FLAIR portal	A separate obligation from the APR, commonly missed.
Annual Return on Foreign Liabilities and Assets	By 15 July each year on the RBI FLAIR portal	A separate obligation from the APR, commonly missed.
Schedule FA disclosure in the return of income	Annually, by the investor	Non-disclosure of a foreign asset engages the Black Money Act — a materially worse exposure than the FEMA breach.

An Indian entity’s total financial commitment to foreign entities is capped by reference to 400% of its net worth per the last audited balance sheet. A resident individual investing directly does so within the Liberalised Remittance Scheme limit of USD 250,000 per financial year, which is usually the binding constraint on a founder-owned structure and often the reason to invest through the Indian company instead.

Delayed filings can be regularised on payment of a Late Submission Fee, but no further financial commitment to that foreign entity is permitted until the delay is regularised. An unreported first tranche blocks the second one.

Why this matters

A company can be correctly incorporated in Canada and still have a compliance problem in India if the money leaving India was not structured and reported correctly. The company exists; the investment trail does not. That is why we treat Canada expansion as a two-country compliance project rather than a Canadian registration exercise.

Board resolution, AD bank covering letter, Form FC data sheet and a dated filing tracker running from the resolution through to the second-year APR.

Canada Business Bank Account for Indian Founders

Incorporation and bank account opening are two different processes with two different decision-makers. A corporation can be validly incorporated and still wait months for an account, because banks apply their own KYC, AML and risk procedures and are not obliged to explain a refusal.

For a Canadian business owned from India, banks assess shareholder and director identity, beneficial ownership, source of funds, business model, expected transaction volumes, countries involved, customer profile, contracts and invoices, web presence and funding structure. Canadian financial institutions have their own client-identification and beneficial-ownership obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations, which is why the questions feel more forensic than they did in India.

Prepare a file containing the certificate of incorporation, the articles, a corporate profile, a business plan, the shareholding structure and ownership chain, director details, source-of-funds documents, an expected transaction profile, customer and vendor information, and the Indian parent’s documents where applicable.

What the bank asks for, in the order it asks, including the source-of-funds narrative template and the transaction profile that decide most applications.

What Documents Do Indians Need to Start a Business in Canada?

For individual Indian founders: passport, proof of residential address, contact details, shareholder and director details, proposed business activity, corporate address details and information on individuals with significant control.

For Indian companies, additionally: certificate of incorporation, constitutional documents, shareholding details, director details, a board resolution, authorised signatory information, a corporate ownership chart, beneficial owner documents, a business profile and financial information.

Because the shareholder is a company, you will need the ownership chain above the Indian parent to the individuals who ultimately hold or control 25% or more, for the ISC determination. Banks and professional advisers will ask for the same chain, so assemble it once and use it everywhere.

How Much Does It Cost to Start a Company in Canada?

There is no single Canada company registration cost, because the total depends on the route and on what you need after incorporation. The current federal online incorporation fee is CAD 200, with a CAD 100 express option; provincial fees differ.

The categories to budget are the government incorporation fee, name-related costs, professional fees, registered office, CRA registrations, banking, accounting, annual corporate filings and any sector licensing. A provider offering a very low incorporation price may not include the registered office, tax registration, banking support, annual compliance, accounting, corporate records, FEMA and ODI support or cross-border tax coordination.

The cheapest incorporation becomes the most expensive structure when the post-registration requirements are ignored.

Three separate blocks — government fees, one-time set-up cost and first-year running cost — with a column telling you who to ask for each quote, and the statutory figures pre-filled.

How Long Does It Take to Start a Company in Canada?

Federal online incorporation has a standard processing time of one business day, with an express service available for an additional CAD 100. That is the fastest step in the project and the least predictive of when you can trade.

You will still need CRA registrations, GST/HST set-up, extra-provincial registration where you operate outside your home jurisdiction, corporate banking, licensing, accounting set-up, payroll registration, import-export accounts, the Investment Canada Act notification and the India-side ODI filings. For an Indian founder the realistic project timeline should be measured to the point where you can invoice and be paid, not to the certificate.

Individuals With Significant Control

Since June 2019, private CBCA corporations have been required to maintain a register of individuals with significant control under s.21.1 CBCA. An ISC is broadly an individual who holds, controls or directs 25% or more of the voting shares or of the fair market value of all shares, or who has direct or indirect influence resulting in control in fact.

Since 22 January 2024, the regime is materially heavier. A federal corporation must send its ISC information to Corporations Canada on incorporation, with its annual return, within fifteen days of any change to the register, and following an amalgamation or continuance. Certain of that information is made publicly accessible, and a corporation cannot complete its annual return without the ISC portion.

The penalties were raised at the same time. Directors, officers and shareholders who knowingly authorise, permit or acquiesce in a contravention face fines of up to CAD 1,000,000 and imprisonment of up to five years; a corporation contravening the filing requirements without reasonable cause faces a fine of up to CAD 100,000.

Corporations Canada can also dissolve a corporation that fails to file.For an Indian-owned corporation, three practical consequences follow. The ownership chain above the Indian parent must be traced to individuals before you incorporate, not afterwards. Where shares are held through a trust, the individuals controlling the trust are themselves ISCs. And where family ownership is spread across several Indian entities, the determination is a piece of analysis rather than a form-filling exercise.

Ontario private corporations must maintain an equivalent register from 1 January 2023, but Ontario does not file it on a public register. If the public visibility of family ownership is a genuine concern, that difference belongs in the jurisdiction decision at the start.

Canada Business Compliance After Incorporation

Canadian corporations carry ongoing obligations on both sides of the structure.

Obligation	When	Basis
T2 corporation income tax return	Within six months of the tax year end — required even in a loss year or a dormant year	s.150(1)(a) ITA
Balance of tax payable.	Two months after the year end for a non-CCPC; three months for a CCPC claiming the small business deduction	s.157 ITA
Corporate annual return to the registry	Federally, within 60 days of the anniversary date	CBCA and the provincial equivalents
ISC information filing	On incorporation, with the annual return, and within 15 days of any change	s.21.1 and following, CBCA
GST/HST returns	Per your assigned filing frequency	Excise Tax Act
Payroll remittances and T4 filings	Monthly or as assigned, where staff are employed	ITA and CRA requirements
Investment Canada Act notification	Before implementation or within 30 days after	s.12 ICA
Annual Performance Report to the AD bank	By 31 December	OI Regulations and Directions, 2022
FLA return	By 15 July	RBI reporting requirements

A dormant Canadian corporation is not free. It still files a T2, still files an annual return, still maintains and files ISC information federally, and still needs accounting to support all three.

Every recurring obligation on both sides, with the legal basis, the consequence of default, and the due date computed from your own tax year-end.

Who Should Consider Starting a Business in Canada?

Indian technology companies creating a local operating entity for customers, partnerships, sales or hiring. SaaS and software businesses building a Canadian commercial presence while product development continues in India. Consultants with a recurring Canadian customer base. E-commerce businesses that must address sales tax, inventory, warehousing, marketplace rules, customs and payment flows. Exporters and importers setting up a Canadian trading or distribution company. Indian startups building an international structure. And established Indian companies that would rather run an overseas subsidiary than manage every Canadian transaction from India.

Why Choose Comply Globally for Your Canada Business Setup?

Many incorporation providers stop when the certificate is issued. For an Indian entrepreneur the real sequence is India, investment, Canadian entity, CRA, banking, operations, tax, ongoing compliance — and the two ends of it interact. A Canadian share certificate that issues late creates an Indian contravention under the six-month rule. An unreported Indian filing blocks the next tranche of Canadian funding. A federal incorporation completed without a resident Canadian director is not compliant with s.105(3) CBCA however quickly the certificate arrived.

We coordinate corporation formation federally or provincially, Canadian tax and GST/HST, India FEMA and ODI, banking documentation, cross-border tax between the two entities, and ongoing compliance after incorporation

Our Canada Business Setup Process

01 — Discovery call. Your business, ownership, target customers and reason for entering Canada.

02 — Structure and jurisdiction assessment. Federal, Ontario, other provincial, subsidiary, branch or extra-provincial registration — tested against board composition, transparency and operating footprint.

03 — Tax and compliance review. Canadian and Indian considerations identified before incorporation, including CCPC status and transfer pricing.

04 — Incorporation. Documentation, ISC determination and filing.

05 — CRA and business registrations, plus the Investment Canada Act notification.

06 — Banking. Corporate KYC and financial documentation prepared before the application.

07 — India-side compliance. Form FC, UIN, remittance and the six-month evidence filing

08 — Ongoing support. Accounting, tax, filings, compliance and expansion.

Canadian Corporation vs Indian Company: Should You Create a Separate Entity?

An Indian company does not automatically need a Canadian subsidiary.

Use the Indian company directly when you are testing the market, Canadian activity is limited, the commercial relationship does not require a local corporation, and your tax and regulatory position supports direct cross-border activity. Note that this route carries its own costs: potential GST/HST registration with the s.240(6) ETA security requirement, Regulation 105 withholding on services performed in Canada, and permanent establishment risk under the treaty.

Consider a Canadian subsidiary when Canadian operations are becoming significant, you need a local contracting entity, you plan to hire, you need Canadian banking, or you expect continued growth.

Consider extra-provincial or foreign registration when you already have a foreign corporation, you want that entity itself to operate in Canada, and the province’s rules support it.

Common Mistakes Indian Founders Make

01

Choosing an entity before defining the business model. A corporation is a legal tool; it supports the business rather than replacing the business plan.

02

Assuming Canada has an LLC. It does not, and a US LLC in the structure creates treaty issues rather than solving them.

03

Assuming the 9% rate applies. It is tied to CCPC status under s.125(7) ITA, which non-resident control defeats.

04

Incorporating federally without a resident Canadian director, contrary to s.105(3) CBCA — or appointing a nominee to satisfy it without understanding that the person carries statutory duties.

05

Missing the Investment Canada Act notification, which s.12 ICA requires within thirty days of implementation.

06

Assuming ownership stays private. Federal ISC information has been publicly accessible since 22 January 2024.

07

Treating banking as automatic. A certificate does not produce a bank account.

08

Signing contracts before the certificate issues, and becoming personally bound under s.14(1) CBCA.

09

Forgetting Indian compliance. A Canadian company creates FEMA, tax and reporting obligations in India.

10

Comparing providers on incorporation fee alone.

Frequently Asked Questions

Can an Indian citizen own a company in Canada?

Yes. Canadian corporate statutes do not restrict foreign shareholding in an ordinary private corporation. The constraint for a non-resident is at board level, not shareholder level — see the director residency question below.

Do I need a Canadian-resident director?

For a federal corporation, yes. s.105(3) CBCA requires at least 25% of directors to be resident Canadians, and at least one where there are fewer than four. For an Ontario corporation, no — s.118(3) OBCA was repealed with effect from 5 July 2021. British Columbia, Alberta, Quebec, Nova Scotia and New Brunswick also have no residency requirement

Can my Indian company be the director of my Canadian corporation?

No. s.105(1) CBCA requires a director to be an individual, at least eighteen, not incapable and not bankrupt. Your Indian company can own 100% of the shares but must nominate an individual.

Should I register federally or in Ontario?

Federal incorporation gives nationwide name protection and a national operating scope, but imposes the resident director requirement and public ISC disclosure. Ontario has neither. If you have no Canadian-resident director you are genuinely willing to appoint, that usually decides it.

Does a Canadian company automatically qualify for the 9% small business tax rate?

No. The 9% rate comes from the small business deduction in s.125(1) ITA, which is available only to a Canadian-controlled private corporation. s.125(7) excludes a corporation controlled directly or indirectly by non-resident persons. A Canadian corporation owned by an Indian company or an Indian resident is generally not a CCPC and pays the general 15% federal rate.

Is my ownership information public in Canada?

Federally, yes in part. Since 22 January 2024, CBCA corporations file information about individuals with significant control with Corporations Canada and certain of it is publicly accessible. Ontario requires the register to be maintained but does not publish it.

What happens if I miss the ISC filing?

Federal penalties are severe. Directors, officers and shareholders who knowingly authorise, permit or acquiesce in a contravention face fines of up to CAD 1,000,000 and up to five years' imprisonment, a corporation faces up to CAD 100,000, and Corporations Canada can dissolve a corporation that fails to file.

Do I have to tell the Canadian government that a foreign company is starting a business here?

Yes. Under s.12 of the Investment Canada Act, a non-Canadian establishing a new Canadian business must give notice before implementation or within thirty days afterwards. For a normal commercial business below the review thresholds it is an administrative notification, but it is a statutory requirement and it is routinely missed.

Does Canada have LLC companies?

No Canadian jurisdiction offers the US-style LLC. For a limited-liability vehicle, the Canadian corporation is the structure to evaluate. The CRA generally treats a US LLC as a corporation, which creates treaty mismatches rather than solving them.

Can I run my Canadian company from India?

You can, but s.250(4)(a) ITA deems a corporation incorporated in Canada to be a Canadian tax resident regardless, and if effective management sits in India, s.6(3) of India's Income-tax Act can make it resident in India too. The dual residence is then resolved under the treaty. Plan the board process before this becomes an assessment.

Do I need a Canadian bank account?

Not in every model, but a Canadian corporate account matters for any business with local customers, expenses, employees or payment flows — and it is the step most likely to delay your launch.

What if I invoice Canadian customers from my Indian company instead?

That is a legitimate route, but price it properly. If you must register for GST/HST as a non-resident without a permanent establishment, s.240(6) ETA requires you to post security with the CRA, and Regulation 105 imposes 15% withholding on fees for services performed in Canada.

How much does federal company registration cost in Canada?

Corporations Canada currently lists the online federal incorporation fee at CAD 200, with an optional CAD 100 express service. Professional fees, registered office, banking, accounting and ongoing compliance are separate.

Will forming a Canadian company give me PR?

No. Company formation and immigration are separate processes. Immigration eligibility depends on the relevant programme and your personal and business circumstances.

What is a Business Number?

A CRA identifier used for federal business accounts. Corporations incorporated federally and in certain provinces, including Ontario are automatically assigned a Business Number and a corporation income tax account through incorporation.

Do Indian companies need FEMA compliance when investing in Canada?

Yes, where it is Overseas Direct Investment. Form FC must be filed and a UIN allotted before the first remittance, evidence of investment must reach the AD bank within six months under regulation 9(1) of the OI Regulations, 2022, and an Annual Performance Report is due by 31 December each year.

Does a dormant Canadian company still have to file?

Yes. The T2 return is due within six months of the tax year end under s.150(1)(a) ITA whether or not there was activity, the corporate annual return remains due, and federal ISC information must still be filed.

Ready to Start Your Business in Canada From India?

Your Canadian company should be designed around where you operate, who owns it, who can sit on the board, how money moves, how you will be taxed and what you plan to do next. As this page shows, those questions are answered by four different statutes, and they do not all give the same answer.
Whether you want an Ontario corporation, a federal corporation, a Canadian subsidiary for your Indian company or guidance on the right alternative to an LLC, we can help you build the structure before you register it.

Tell us your business activity, where you are based in India, your proposed Canadian location, whether you already have an Indian company, your expected Canadian customers and revenue, and whether you need banking, tax or FEMA support. We will tell you the appropriate next step