Expat Business & Incorporation Guide

Check your legal eligibility to start a business in Canada and review the corporate compliance requirements.

⚠️ Corporate Compliance Alert:

Running a business in Canada while holding temporary residence is highly regulated. Unauthorized active self-employment on a closed work permit is a serious immigration violation. Ensure your visa grants self-employment rights (such as an Open Work Permit or C11 Entrepreneur permit) before actively trading.

Expat Business Checker

Incorporation Checklist

If you incorporate a business in Canada, follow these regulatory setup steps:

Run a NUANS Name SearchPerform a federal search to ensure your proposed corporate name is unique and not trademarked.
File Articles of IncorporationFile provincially (e.g. ServiceOntario) or federally with Corporations Canada. Federal filing costs $200.
Appoint Directors & Address Residency RequirementsFederal corporations require at least 25% of directors to be Canadian residents. BC, Alberta, and Ontario have eliminated this resident director rule.
Obtain a CRA Business Number (BN)A unique 9-digit identifier issued automatically by the Canada Revenue Agency upon incorporation.
Open a GST/HST Program AccountMandatory if your gross taxable sales exceed $30,000 CAD in any single calendar quarter or cumulative year.
Open a Canadian Business Bank AccountDo not mix personal and corporate funds. Open a dedicated business account with a major bank (RBC, TD, Scotiabank) using your articles of incorporation.

Entrepreneur Visa Pathways

If you are a foreigner looking to immigrate to Canada by starting a business, you have two primary options:

1. C11 Significant Benefit Work Permit:

A self-employed LMIA-exempt work permit for business owners who own at least 50% of a Canadian business. You must prove that your business offers significant economic, social, or cultural benefits to Canada.

2. Provincial Nominee Program (PNP) Entrepreneur Streams:

Each province operates an entrepreneur stream (e.g. OINP Entrepreneur in Ontario). These streams require a minimum net worth ($400,000–$800,000), a minimum personal investment ($200,000+), and creating jobs for Canadian citizens.

Corporate Tax Rates

Federal Small Business Rate:	9.0%
Ontario Corporate Rate:	3.2% (Small Business)
General Corporate Rate:	38.0% (Before Abatements)
GST Registration Limit:	$30,000 / yr

Contractor Withholdings

If you operate a foreign business providing services in Canada, the CRA enforces a mandatory **15% withholding tax (Regulation 105)** on all invoice payments.

You must file a Reg 105 waiver or file a T2 corporate tax return at the end of the year to claim these withheld amounts back.