To form a company in Canada, several key requirements must be met, which vary depending on the type of business entity being established (e.g., corporation, partnership, or sole proprietorship). The first step is to choose the legal structure of the business. For a corporation, it is essential to select whether it will be a federal or provincial corporation. Federal incorporation allows a company to operate across all provinces, while provincial incorporation limits operations to the specific province.

Next, the company must register its name with the appropriate governmental body to ensure it is unique and not already in use. This process involves a name search and approval, and a report from a corporate registry office may be required. Additionally, the corporation must designate a registered office within Canada, which serves as the address for official correspondence and legal documents.

A minimum of one director is required for business setup in Canada1, and they must be a Canadian resident, though certain exceptions may apply for foreign corporations. Depending on the size and nature of the business, certain licenses or permits may be required at the municipal, provincial, or federal level. A business number (BN) must be obtained from the Canada Revenue Agency (CRA) for tax purposes, including GST/HST, payroll, and other applicable taxes.

Finally, Canadian businesses must comply with regulations regarding taxation, annual filings, and financial reporting. To navigate these complex steps effectively, it is highly recommended that you consult with legal or accounting professionals.