Company formation in Canada

Updated 5 October 2026

A federal or provincial corporation in 2026: director requirements, fees, taxes and reporting.

A company in Canada is registered federally under the Canada Business Corporations Act or in one of the provinces. A federal corporation can operate under its name nationwide, but it also registers in each province where it does business. A provincial one is cheaper and simpler if the business is in a single province. For a foreign owner the key question is directors: at least 25% of a federal corporation's directors must be resident Canadians, and if there are fewer than four directors, at least one.

A Canadian company suits work with the US and Canadian markets, hiring in Canada and raising investment. The start-up visa for foreign founders is closed to new applications, so the company itself gives no right to move.

How much does it cost to register a company in Canada: government fees

US dollar amounts use the European Central Bank rate of 5 October 2026, about 1.43 Canadian dollars per US dollar.

Company requirements

• Directors. For a federal corporation, at least 25% resident Canadians. Ontario dropped its director residency requirement in 2021; British Columbia has none.
• Shareholders of any nationality and residence, including companies.
• A registered office in Canada, in the province named in the articles.
• Register of individuals with significant control. Since 22 January 2024 federal corporations file it with Corporations Canada, and part of it is public.
• A business number from the Canada Revenue Agency for taxes and payroll.

How registration works

1. Level and province. Federal or provincial, given the director requirements.
2. A name or a number instead, with a name search.
3. Articles and director details, registered office.
4. Online filing and the certificate of incorporation.
5. Provincial registration where the company does business, if federal.
6. Business number and, if needed, GST registration.
7. A bank account for the Canadian corporation.

Taxes and reporting

• Corporate income tax: 15% federal plus provincial tax, for example 26.5% combined in Ontario. The reduced 9% federal rate on the first CAD 500,000 of profit, about $350,800, applies only to Canadian-controlled private corporations; a foreign-controlled company does not get it.
• Goods and services tax: 5% federal, harmonised with a provincial part in some provinces. Registration is mandatory once turnover over four consecutive quarters exceeds CAD 30,000, about $21,100.
• Corporate tax return within six months of the financial year end.
• Annual return to Corporations Canada and updates to the significant control register.

Why problems arise

• No resident director for a federal corporation: the filing is rejected.
• Not registered in the province where business is actually done: penalties and contract problems.
• Significant control register not filed: penalties for the company and directors.
• The bank will not open an account without real activity in Canada: clients, contracts, staff or an office.
• The company is actually run from another country: a risk of dual tax residency.

What we do

Murblz specialists choose the registration level and province, solve the resident director question, prepare the articles and significant control register, incorporate the company, obtain the business number and GST registration, and prepare the bank file. We quote the cost after a short consultation.

What we do

• Turnkey company registration
• Full nominee service for 1 year
• Compliance fee
• Bank account opening pre-approval
• Purchase of a shelf company

See also

Business account · Personal account · Investment property · Country taxes · All country programs

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