How to Incorporate a Company in Canada from India (Without Moving There)
· 5 min read
You can own a Canadian company without living in Canada. Plenty of founders in India do it, usually because they sell to Canadian customers, want a North American entity that is not American, or need a Canadian presence for a contract. What trips people up is not the filing itself. It is picking the wrong jurisdiction first and then paying to fix it later.
Federal or provincial: the choice that comes first
In Canada you incorporate either under the federal act (the Canada Business Corporations Act, or CBCA) or under the law of one province. Both give you a real corporation with limited liability. The difference is where the name is protected and where you have to register to do business.
| Federal (CBCA) | Provincial | |
|---|---|---|
| Name protection | Across Canada | In that province only |
| Where you file | Corporations Canada, online | The provincial registry |
| Extra step | You still register in each province where you operate | You register in other provinces if you operate there |
| Good fit | You plan to sell across several provinces | You operate mostly in one province |
If you are not sure, ask where your first customers are. A company serving clients in Ontario only gains little from a federal name. A company that will sell nationally often does.
Do you need a Canadian director?
This used to be the main obstacle. Federal law no longer requires a minimum number of resident Canadian directors, and Ontario dropped its rule in 2021. Some provinces have changed theirs and others have not, so do not assume. Check the rule for the province you pick before you pay for anything. A company still needs at least one director who is a real person, and director names and addresses go on the public record.
The steps, in order
- Choose the jurisdiction. Federal or one province, as above.
- Decide on the name. A named company needs a name search report (NUANS) in most cases. A numbered company, such as "1234567 Canada Inc.", skips the name step and can be renamed later. It is a quick way to get moving if the brand is not final.
- Arrange a registered office in Canada. The address must be in the province you choose, and it must be a place where legal papers can be delivered. A home address in India does not qualify.
- File the articles of incorporation. You list the directors, the share structure and the registered office. At the time of writing, the federal online fee is about CAD 200, but check the current fee on the Corporations Canada site before you budget.
- Get your business number. The Canada Revenue Agency issues it, and you need it to open tax accounts.
- Register for GST/HST if you need to. You must register once your taxable sales pass CAD 30,000 over four consecutive quarters. Many founders register earlier so they can claim tax back on costs.
- Keep the internal records. A corporation must hold its own register of directors, shareholders and individuals with significant control. You do not file these with the government, but you must be able to produce them.
The tax point that surprises non-resident owners
You may have read that Canadian companies pay a low rate on their first CAD 500,000 of profit. That small-business rate is for Canadian-controlled private corporations, and a company controlled by people who live outside Canada does not qualify. If you own the company from India, expect the general corporate rate, which is higher, plus provincial tax. Run the numbers before you assume the headline rate applies to you.
The company is also a Canadian tax resident, so it files a corporate tax return every year, even in a year with no income. Dividends sent to you as a non-resident are usually subject to Canadian withholding tax, which a tax treaty can reduce. Ask an accountant what the India rate is for your situation instead of relying on a blog post, this one included.
Banking and the India side
Opening a Canadian business bank account as a non-resident is often harder than forming the company. Some banks want you to visit a branch. Others will talk to you remotely if you bring enough paperwork. Plan this early and do not assume it will be quick.
If you are an Indian resident, there are also RBI and FEMA rules about investing in a company abroad. That is outside what a formation service can advise on. Speak to a chartered accountant before you move money.
What it costs
There are three kinds of cost: the government filing fee, the registered office service, and whatever help you use to prepare and submit the filing. Our Canada company formation package is $500. Confirm what the government fees on top of that are for your province before you start.
When a Canadian company is the wrong tool
If you only need to invoice international clients and receive payments, a US LLC is usually simpler and cheaper to run. See our guide to US LLCs for non-US residents. A Canadian corporation makes sense when you have Canadian customers, Canadian contracts or a plan to hire there.
Common questions
Can I be the only shareholder and director?
Generally yes, in most jurisdictions. Confirm the director rule for your province.
How long does it take?
Online federal filings can be processed quickly once the paperwork is right. Registrations in other provinces, the business number and bank account take longer, and these are the steps that usually decide your timeline.
Do I need a lawyer?
Not to incorporate. You may want one for a shareholder agreement if there is more than one owner.
Ready to start? See the Canada company formation page or message us on WhatsApp and we will tell you which route fits your plan.
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