How To Set Up A Subsidiary Company In Canada
Our local agents can assist with the registration of a subsidiary. To form a subsidiary you must hold a meeting of your board of directors or management and vote on the decision to form a subsidiary.
After years of nurturing your company and working tirelessly to generate a successful strategy youve seen your hard work pay off and youre looking towards the future with an expanded business.
How to set up a subsidiary company in canada. Through Corporations Canada an individual wanting to incorporate federally can incorporate a new company. The two most common ways in which foreigners register to operate ther businesses in Canada are through the registration of a Canadian branch or the incorporation of a Canadian subsidiary. Corporate subsidiary Corporation form rather than flow-through form File dissolution documents with the appropriate federal provincial or territorial government authority as the case may be and final tax returns with federal and provincialterritorial tax authorities.
Establishing a foreign legal entity is a long expensive process and Canada is no different. To register as a corporation you will need to. If the subsidiary has been formed under the federal laws of Canada the subsidiary will need to register in each Canadian jurisdiction where business will be conducted.
Incorporate your business obtain your articles of incorporation through federal incorporation or provincialterritorial incorporation get a federal business number and Corporation income tax account from the Canada Revenue Agency. Disclaimer The information provided on this page is intended to provide general information. The first step related to opening a company in Canada is related to choosing a company name.
Establishing a subsidiary of a foreign company in Canada. One of the available structures for foreign companies in Canada is the subsidiary company. Before setting up a foreign subsidiary in Canada companies need to be aware of the challenges that come with this expansion option and learn the alternatives available to companies expanding into this Northern territory.
Where the subsidiary will carry on business in Canada. If the subsidiary has been formed under the laws of a specific Canadian province or territory the subsidiary will need to register in each Canadian jurisdiction where business will be conducted. Youll also need to find and register a physical office space and open a corporate bank account in Canada.
Businesses that plan to have a long-term presence in the country often opt to set up a foreign subsidiary because the benefits often outweigh the risks. In these situations the time and expense of setting up a foreign subsidiary can often be justified by the greater flexibility that. Indicate the type of business entity that has been chosen for the subsidiary.
Extra Provincial Corporations Establishing a Corporation requires 25 local ownership while Partnership is 50 and an EPC requires at least a local resident agent or representative in the Province that the company registers in. The ownership of the subsidiary and the type of corporate entitysuch as a limited liability company LLCare spelled out in the registration. A branch office is an extension of the parent corporations business while a subsidiary is a separate corporation which is controlled by the parent.
A subsidiary is formed by registering with the state in which the company operates. As a US corporation planning to expand to Canada its a wise idea to set-up a subsidiary Canadian corporation because of the tax and legal benefits. What Do You Need to Set up a Canada Subsidiary.
Last modified 27 May 2020. Following that the incorporation papers must be prepared and filed with the Trade Register. The resolution should be signed by the chairman and archived.
For individuals wanting to incorporate subsidiaries provincially the provincial website of the incorporation must be accessed. An unlimited liability corporation ULC either a Nova Scotia ULC an Alberta ULC or a British Columbia ULC is one type of corporation that can be used to set up a Canadian Subsidiary. You will need a significant amount of time money and energy to go through the Canada subsidiary setup process.
Foreign companies generally establish a business presence in Canada in one of three modes1. The controlling companycorporation is typically known as the parent corporation. Your business is your baby.
First youll register your business name and file articles of incorporation. Partnerships general or limited3. Then special licenses or permits must be obtained.
Lets say Company A wants to.
