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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~30 days
Setup Time
~$215
Setup Cost
15%
Corporate Tax
100%
Foreign Ownership
#23
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Corporation (Federal) Société par actions fédérale | None | 100% | Limited | 1 | Most foreign investors - nationwide operations, limited liability, credibility |
Corporation (Provincial) | None | 100% | Limited | 1 | Businesses operating primarily in one province - simpler compliance |
Limited Partnership (LP) Société en commandite | None | 100% | Hybrid | 2 | Investment vehicles, real estate - limited partners have limited liability |
Branch Office | None | 100% | Unlimited | 0 | Foreign companies extending operations to Canada without separate entity |
Choose Federal or Provincial Incorporation
Decide whether to incorporate federally through Corporations Canada or provincially
1-2 days
Free
Corporations Canada / Provincial Registry
Conduct NUANS Name Search
Run a Newly Upgraded Automated Name Search report to confirm name availability
1 days
~$15
NUANS
File Articles of Incorporation
Submit articles of incorporation online through Corporations Canada or provincial registry
1-5 days
~$200
Corporations Canada
Obtain Business Number (BN) from CRA
Register with Canada Revenue Agency for Business Number, GST/HST, payroll, and corporate tax accounts
1-5 days
Free
Canada Revenue Agency
Register for Provincial Sales Tax
Register for PST/QST if operating in provinces with separate sales tax (BC, SK, MB, QC)
1-5 days
Free
Provincial Tax Authority
Open Corporate Bank Account
Open a business bank account at a Canadian chartered bank with incorporation documents
1-7 days
Free
Commercial Bank
Register for Workers Compensation
Register with provincial workers compensation board (e.g., WSIB in Ontario)
1-5 days
Free
Provincial Workers Compensation Board
$2560/mo
Minimum Wage
$5200/mo
Average Wage
40 hrs/week
Work Hours
10 days/year
Paid Leave
1 weeks/year
Severance
7.4% of salary
Employer Social Security
7.4% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: Labour Market Impact Assessment (LMIA) required unless exempt under trade agreements
Work Permit Process: Employer-specific work permit requires LMIA. Intra-company transferees and CUSMA professionals may be exempt.
#23/190
Ease of Business Rank
1.5 days
Starting a Business
4 days
Registering Property
910 days
Enforcing Contracts
74/100
Corruption Perception
97%
Internet Penetration
CAD
Currency
UTC-3.5 to UTC-8
Time Zone
14
Retail (months)
12
F&B (months)
18
Tech (months)
24
Manufacturing (months)
10
Services (months)