How To Register a Company in Canada from India?

Creating a legal entity in Canada independent of its owners and shareholders, known as a Corporation, offers numerous benefits, including liability protection and financial security. If you are considering incorporating your business in Canada from India, this guide will walk you through the essential steps and requirements.

What is Canada Business Incorporation?

Canada company formation establishes a legal entity separate from its owners and shareholders. Businesses can be incorporated at either the federal or provincial level, with popular provinces for incorporation including Alberta, Ontario, and British Columbia. However, it's important to note that the provinces of Alberta and Ontario require at least one director to be a Canadian citizen or permanent resident, making it essential to consider your eligibility before proceeding.

Benefits of Business Registration in Canada

Incorporating a business in Canada offers several advantages:

Easier Funding Opportunities: Canadian incorporation makes it simpler to raise funds from Canadian investors and operate internationally, including in India. Businesses can sell shares and equity to fuel growth.
Increased Credibility and Trust: Incorporation enhances a business’s credibility, attracting investors, customers, and suppliers. This leads to increased trust and confidence, positively impacting relationships with stakeholders and potential partners.
Government Grants and Incentives: Canada provides various grants and schemes that support innovation and business growth. By incorporating in Canada, businesses can access these programs to fund research and development, hire and train employees, and expand into new markets.

Documents Required for Canada Business Incorporation

To incorporate a business in Canada, you will need to submit the following documents:

Articles of Association
Lease Agreement of the chosen office space
Title Agreement of the registered office space
Details of the Board of Directors (BoD)
Federal Business Number from Canadian authorities for corporate transactions
Proof of Residence for foreign shareholders
Address, visa, and passport details for foreign shareholders
Proof of identity for the company's shareholders, translated and notarized
Certified copy of the passport and visa of the applicant
Paid-up capital details for company incorporation
Details of the company's founders, managers, and their corresponding identification proofs and appointment letters
Company registration processing fee receipt
Fit and proper criteria of the appointed managers
Board resolution, if needed

Steps to Register a Company in Canada from India

Here are the steps to register your company in Canada:

Choose a Name for Your Business: Ensure the name is unique and not already in use. Conduct a name search to confirm its availability.
Obtain a Business Number (BN) or an NEQ (Quebec only): A business number (BN) is a nine-digit account number that identifies your company to federal and provincial governments. If incorporating in Quebec, you will need an NEQ (Quebec Enterprise Number).
Decide to Incorporate Federally or Provincially: Federal incorporation allows you to operate under the same name across all provinces and territories but involves higher costs and more compliance requirements. Provincial incorporation is managed by the respective Provincial Registrar.
Submit Required Documents: For federal incorporation, submit the Articles of Incorporation, registered office address, and chosen business name through Corporations Canada. For provincial incorporation, contact the appropriate Provincial Registrar and provide the necessary documents.
Apply for GST/HST: If your business's expected annual turnover is $30,000 or more, you must register for a GST/HST account. Businesses with lower revenue can voluntarily register to benefit from tax refunds on business expenses.

Conclusion

Incorporating a business in Canada from India involves a series of steps and careful consideration of the legal requirements. By understanding the process and preparing the necessary documents, you can successfully register your company and take advantage of the numerous benefits that come with Canadian business incorporation.