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OttawaCanadaHow to Start a Business in Canada from India
You want a Canadian company, and you want to set it up without leaving India. Maybe a Canadian client wants a local entity to sign with, maybe you are hiring in Toronto, or your Indian company is ready for its first overseas subsidiary.
Canada allows this for Indian owners, but it asks for three things before the paperwork: a route that fits where you will actually operate, a director plan that meets that route's rules, and Indian overseas investment papers that match the Canadian records.
There are three ways to start a business in Canada from India: incorporate federally, incorporate in a province, or register your Indian company to operate there. The right one depends on what you will do, who will own the business and which province it will operate in.
This page takes about 12 minutes, every figure has its source beside it, and once you tell us which founder you are, the notes start speaking to your situation.
Every figure sourced and dated: Corporations Canada, CRA, IRCC and RBI, reviewed 25/09/2026
First, which of these sounds like you?
Pick one. From here on, the notes on this page are written for your situation, and we keep a running summary for you at the end.
Tap a card above. Nothing is saved or sent; it simply tailors the notes on this page for you.
The whole route on one screen
Only have two minutes? This is the screen to save. Follow the five stops, then answer the four questions that shape them.
- 01India side firstYour AD bank confirms the overseas investment route before any money movesBefore filing
- 02Federal filingArticles of incorporation filed online with Corporations Canada1 day online
- 03Business numberComes with federal incorporation for your CRA accountsAt incorporation
- 04Provincial registrationIn each province where you carry on businessWhere you operate
- 05One compliance calendarAnnual return and tax in Canada, plus APR, FLA and Schedule FA in IndiaEvery year
A Canadian corporation is the usual fit.
You may not need a Canadian entity yet.
Federal and provincial are both open to you.
Start from your operating province.
The resident individual route applies.
Board authorisation and a clear ownership chain.
Register there and check its permits.
Extra provincial registration in each one.
What kind of Canadian business should you form?
Before a single form, one question: what will actually happen in Canada?
A corporation, formed federally or under provincial law, is a legal entity separate from its shareholders. A branch is your Indian company itself. A sole proprietorship exists in Canada, but it rarely suits a founder who stays in India.
Branch of your Indian company
When it fits: you want the Indian company itself to carry on business in the province. No new shareholders does not make it simpler.
- ✕Separate Canadian entityNo, the branch is the Indian company
- !LiabilitySits with the Indian parent
- !Set upRegistration in the province where it operates
- !Canadian taxMay have to file a T2, even when claiming treaty relief
Canadian subsidiary
When it fits: you plan to hire, sign Canadian contracts or raise Canadian money. You or your Indian company can hold the shares.
- ✓Separate Canadian entityYes, separate from its shareholders
- ✓LiabilitySits with the corporation
- ✓Set upFederal or provincial incorporation
- ✓Canadian taxThe corporation files its own returns
Sole proprietorship
When it fits: seldom from India. You carry the business personally, with no company standing between you and Canada.
- ✕Separate Canadian entityNo
- ✕LiabilitySits with you, personally
- !Set upRules differ by province
- ✕Canadian taxExposure falls on you
Tell us who you are and this note will speak to your situation.
Federal or provincial incorporation: which fits your plan?
Everyone asks "federal or provincial?" A better question: where will your people, stock or office actually be?
A federal corporation is formed under the Canada Business Corporations Act; a provincial one under the law of the province you choose. Neither is a free pass to operate everywhere. Pick the province where your first real operations will be, then compare its director, address, name, filing and annual rules with the federal route.
Tap every province or territory where you will have an address, staff or stock
The first one you tap becomes your operating province. This is a schematic, not a map to scale.
Tap where you will operate and we will list the jurisdictions to check.
Your operating province becomes the home jurisdiction.
Its business name and French language requirements belong in your comparison.
How many resident Canadian directors would a federal corporation need?
At least 25% of the directors must be resident Canadians, and at least one if the board has fewer than four. Pick a board size.
Fewer than four directors, so at least one must be a resident Canadian.
Provinces set their own rules. Read the chosen province's law rather than assuming the federal rule applies.
Swipe to compare →
| Question | Federal corporation | Provincial corporation |
|---|---|---|
| Governing law | Canada Business Corporations Act | The law of the province you choose |
| Resident directors | At least 25%, minimum one if fewer than four; a majority in restricted and certain cultural sectors | Set by each province |
| Operating in other provinces | May need to register in each province or territory where it carries on business | Check the other jurisdiction's extra provincial rules |
| Business number | Received as part of incorporation | At incorporation in some provinces; elsewhere register with the CRA |
| Ownership filing | Individuals with significant control (ISC) | Check the province's rules |
| Annual filing | Annual return, CAD 12 online | Confirm the province's duties |
Tell us who you are and this note will speak to your situation.
Sources: Canada Business Corporations Act, section 105(3); Corporations Canada, directors and officers; fees and processing times. Read 25/09/2026.
Step by step procedure to start a business in Canada
Here's what most guides get backwards: filing the incorporation is Step 03, not Step 01. You have already done most of Steps 01 and 02 by reading this far.
Decide
Define your activity and operating province
What you will sell, where your goods or staff will be, and which province runs the operation.
Write down what you will sell, where your goods or staff will be, and which province the actual operation will sit in.
Choose ownership and filing route
You or your Indian company as owner; federal, provincial or branch as the route.
Decide whether you or your Indian company will own the Canadian entity, then choose the route using the structure comparison and the federal or provincial section above. Finally, decide where the registered office will be and who can sign for the business.
Tell us who you are and this note will speak to your situation.
Source: Canada Business Corporations Act, section 105(3); Corporations Canada, directors and officers.
File
Prepare and file the incorporation
Name or number, share structure, articles, director details, plus ISC for federal companies.
Choose a name the registry will accept, or go with a numbered company where the route allows it. Decide the share structure, then prepare the articles, director details, registered office details and ownership records. Federal corporations also file information about individuals with significant control (ISC).
Source: Corporations Canada, individuals with significant control and federal incorporation.
Register where the company operates
Extra provincial registration wherever you carry on business, plus local and industry permissions.
Check extra provincial registration in each province or territory where the company will carry on business; the footprint tool above lists yours. Then check the municipal and industry permissions your activity needs, because incorporation and permission to carry on a regulated activity are two different things.
Source: Corporations Canada, next steps following incorporation.
Fund and bank
Arrange tax accounts and fund the company
A business number from the CRA, program accounts on it, then share capital through your AD bank's route.
The business number (BN) is a nine digit CRA number that identifies the business for tax. Program accounts, such as GST/HST or payroll deductions, are added to it. Federal corporations and corporations in some provinces receive a BN at incorporation; elsewhere, you register with the CRA directly. The funding side is covered in the India section below.
Tell us who you are and this note will speak to your situation.
Source: CRA, business number registration for non residents.
Prepare banking and operating records
Banks decide on their own due diligence. A complete, consistent file moves that decision.
Ask your chosen bank what it needs from foreign shareholders and directors. It decides after its own due diligence, and remote onboarding, identity checks and policies for foreign owners differ between banks. The full list of what to prepare is in the documents checklist.
- The ownership chain is unclear. Fix: match your Indian records against the Canadian shareholder register and name the ultimate owners.
- The funds cannot be traced. Fix: keep the remittance papers that match the share records.
Source: provider onboarding policies.
Planning to move to Canada yourself?
That is a separate question from the company. Owning a business does not authorise you to work in Canada, and the Startup Visa Program is paused: only founders holding a valid 2025 commitment certificate could apply, and that window closed on 30 June 2026. The linked work permit is closed to new applicants. Check IRCC's Startup Visa page before planning around it.
Documents to prepare at each stage
Get these together before you start and the bank step stops being scary.
Tick each item as you gather it; your count shows up in the summary at the end of the page. The registry, bank and licensing authority set the final requirements, including whether Indian documents need certified copies or translation.
Canadian incorporation
- Name or numbered company choice
- Articles and share structure
- Registered office
- Directors
- Incorporator and ownership details
Indian company as shareholder
- Incorporation and constitutional documents
- Board authorisation
- Ownership chain
- IDs of authorised signatories
Indian overseas investment
- Investor and transaction details
- Source of funds
- The overseas investment forms and evidence your AD bank asks for
CRA and local registrations
- Incorporation records
- Business activity
- Addresses
- Responsible people
- Payroll or sales details where they apply
Bank onboarding
- Articles and certificate
- Beneficial owner chart
- IDs and signing authority
- Evidence of operations
- Source of funds records
0 of 22 ready
Tap any item to mark it ready. A complete, consistent file is what moves the bank's decision.
Get the file checkedOutbound investment and managing a Canadian company from India
Halfway there. Now for the half that Canadian registries never mention.
Forming the Canadian corporation is only half of the cross border setup. The other half is governed by India's overseas investment and foreign exchange rules, and it has its own filings every year.
Tell us who you are and this note will speak to your situation.
Money out of India
Money out of India: the overseas investment route
Funding a Canadian company from India is an overseas investment. Confirm whether the investor is you or your Indian company, then agree the documents and the order of steps with your AD bank before you remit.
Two sets of records
What happens on each side of the border
The ownership in the Canadian share records should match your Indian overseas investment and remittance papers. Banks, the ISC register and your AD bank all read the same story.
INIndia side
CACanada side
Figure 4. The India and Canada sides run in parallel and meet at one ownership chart.
Owning it from India
Owning it from India
Holding an overseas entity brings recurring Indian disclosures alongside the Canadian ones: the Annual Performance Report through your AD bank, the FLA return, and Schedule FA in your income tax return. The dates sit in the compliance calendar.
A branch owes Canadian filings too
An Indian company carrying on business in Canada may have to file a Canadian T2 corporate income tax return, even if it claims treaty relief. It depends on the facts of each case.
Place of Effective Management (POEM)
Under Indian tax law, a foreign company managed entirely from India can be treated as an Indian tax resident. Document where key board decisions and strategic management actually happen.
RelatedRBI overseas investment directions · CRA, income tax for non resident corporations
How much will it cost, and how long will it take?
Quick test: can you name your company's year two cost? If not, you are exactly where you should be.
Corporations Canada lists CAD 200 for a basic online federal incorporation and CAD 12 for the online federal annual return. Those are government filing fees only, not the full cost of starting or running a company.
The tip you can see on day one
- Basic online federal incorporation CAD 200
- Online processing standard 1 day
- Numbered company option no name work
The part under the water
- Online federal annual return CAD 12 · yearly
- Provincial and extra provincial filings own fees
- Registered address and professional advice in your scope
- Licences and permits per regulator
- GST/HST registration past CAD 30,000 when triggered
- APR, FLA and Schedule FA in India every year
Tell us who you are and this note will speak to your situation.
From certificate to open for business
Only the first stop has a published time standard. Every stop after it moves as soon as the right desk has what it needs, so each one shows who decides and what speeds it up.
- 11 day · online federal
Incorporated
- Who decides
- Corporations Canada, or your province
- Speeds it up
- Articles, directors and ISC details ready before you file
- 2Depends on the province
Registered where you operate
- Who decides
- Each province or territory where you carry on business
- Speeds it up
- Knowing your footprint; tap the map
- 3BN at incorporation, federal
Tax accounts
- Who decides
- The Canada Revenue Agency
- Speeds it up
- Activity, addresses and responsible people ready
- 4Depends on your AD bank
Funded from India
- Who decides
- Your authorised dealer bank in India
- Speeds it up
- Investor decided and documents agreed before you remit
- 5The bank's own timeline
Bank account open
- Who decides
- The bank, after its own due diligence
- Speeds it up
- An ownership chart and source of funds records that match
- Your finish line
Open for business
- Who decides
- You, plus any regulator whose permit you need
- Speeds it up
- Permits checked before launch, not after
Figure 5. Six milestones between the certificate and your first sale. Source: Corporations Canada, fees and processing times, read 25/09/2026; CRA business number guidance.
"Can you give me a written budget for year one, and a separate estimate for year two?"
The one question worth asking any provider, including us. Then compare quotes line by line: government fees, provincial registrations, address services, tax setup and annual support.
Your compliance year, on both sides of the border
Two countries, one calendar. Pin this one to your wall.
The Canadian dates follow your own incorporation anniversary and tax year end, so they move with your company. The Indian dates are the standard ones for an Indian owner of an overseas entity.
Swipe to see all 12 months →
- MarCanadaEnd of Q1: GST/HST threshold check
- JunCanadaEnd of Q2: GST/HST threshold check
- JulIndia15 July: FLA return on RBI FLAIR
- JulIndia31 July: income tax return with Schedule FA
- SepCanadaEnd of Q3: GST/HST threshold check
- DecCanadaEnd of Q4: GST/HST threshold check
- DecIndia31 December: APR through your AD bank
Also rolling through the year: the federal annual return around your incorporation anniversary (CAD 12 online), your tax filings with the CRA after each tax year ends, ISC updates when ownership changes, and payroll and sales tax reviews whenever operations change. A year with no sales can still carry filings.
Are you still a small supplier?
No registration is required while taxable supplies stay at or below CAD 30,000 in a single calendar quarter and over the last four. Enter your figures in CAD.
Worldwide taxable supplies of your business and its associates, leaving out financial services, sales of capital property and goodwill from the sale of a business.
Sources: CRA, when to register for GST/HST; RBI FLAIR and overseas investment directions. Read 25/09/2026. Non residents selling digital products or services, or platform based short term accommodation, may have separate rules.
Want these dates for your own company?
Send us your incorporation date and tax year end and we will reply with one calendar covering the Canadian filings and the APR, FLA and Schedule FA dates in India.
- Annual return, tax and GST/HST dates
- APR, FLA and Schedule FA dates
Three ways to get this done, honestly compared
Three honest paths. We will even tell you when the cheapest one is fine.
Two formation quotes can differ a lot, and the difference is usually in what they leave out. Before you pay anyone, ask who handles each filing, what the quote leaves out, whether banking support is only assistance, and what year two will cost.
What happens after you get in touch with Comply Globally
No obligation, no sales sequence, and a written scope you can take to any other provider for a second opinion.
A structure call
Your planned activity, your first operating province, who will own the company, the proposed directors, the source of funds, and whether you plan to work in Canada in person.
A written scope
The route, the director and address plan, the registrations it triggers, and separate estimates for year one and year two, with incorporation, provincial registration, tax accounts and banking as separate items.
Execution, both sides
The Canadian application, provincial registration, tax accounts and the bank file, alongside the Indian overseas investment paperwork and the annual cycle in both countries.
BUSINESS CONNECT · CONNECT VENTURES INC.
BUSINESS CONNECT · CONNECT VENTURES INC.
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Dr. Anil Gupta
Global Expansion Advisor · Comply Globally
[BIO: two or three lines on Dr. Gupta's background, credentials and years of cross border advisory experience. On a tax and legal page, a named author with a real profile is a core trust signal.]
Frequently asked questions
Still got a question? It is probably one of these 32.
Structure and province
Which kind of Canadian business fits, and where it should be formed.
Still unsure? Ask an adviserReady to start your business in Canada?
You made it to the end. Here is what you told us on this page, so you do not have to type it again.
Send it to us on WhatsApp and we will reply with the appropriate next step, in writing, with separate estimates for year one and year two.
Last reviewed 25/09/2026 · Comply Globally Canada desk · Figures in CAD are published federal amounts. This is general information, not legal, tax or immigration advice for any particular case.