How to start a business in Canada as a foreigner (2026)
Starting a business in Canada as a foreigner: easy.
Canada is one of the world's easier jurisdictions for foreigners to start a business: there is no minimum share capital, no cap on foreign ownership in most sectors, and a company can be federally incorporated online in about one business day for a CAD $200 filing fee. The main friction for non-residents is the federal CBCA rule requiring 25% of directors to be resident Canadians (or at least one if fewer than four directors), which is why many foreign founders instead incorporate in British Columbia, Alberta, or Ontario, which have eliminated director-residency requirements. Only very large acquisitions trigger review under the Investment Canada Act, and the entrepreneur-immigration Start-Up Visa route was paused to new applicants on 31 December 2025 pending a replacement pilot.
Legal framework
Canada Business Corporations Act (CBCA) administered by Corporations Canada, plus provincial business corporations acts (e.g. Ontario OBCA, BC BCA); Investment Canada Act (ICA) governs large foreign acquisitions; CRA administers the Business Number and GST/HST registration
Key points: starting a business in Canada
Foreign ownership
Foreigners may own 100% of a Canadian corporation in most sectors; there is no general foreign-ownership cap or licence for setting up a company. Sector-specific limits apply only in certain regulated industries (e.g. broadcasting, telecoms, air transport, uranium, financial services), where a majority of directors must be resident Canadians.
Director residency (CBCA)
Under s.105(3) CBCA, at least 25% of directors of a federal corporation must be 'resident Canadians', and where a corporation has fewer than four directors at least one must be a resident Canadian. Ontario (OBCA, since July 2021), British Columbia, Alberta and Nova Scotia have removed this requirement, so foreign founders commonly incorporate provincially to avoid it.
Steps to incorporate federally
The core steps via the Corporations Canada Online Filing Centre are: (1) choose a corporate name and obtain a NUANS name-search report (or take a numbered name); (2) file Articles of Incorporation setting out share structure and any restrictions; (3) appoint initial directors and provide a registered office in Canada; (4) receive the Certificate of Incorporation; (5) file the initial Individuals with Significant Control (ISC) return; (6) register for a CRA Business Number and, where turnover will exceed CAD $30,000 in four consecutive quarters, GST/HST; (7) register extra-provincially and obtain any municipal/sectoral permits (BizPaL helps identify them).
Cost and timeline
Federal online incorporation costs CAD $200 and is typically completed within one business day (a 4-hour express option is available for an added fee); the NUANS name-search report costs roughly CAD $14-$60. There is no minimum paid-in capital requirement under the CBCA.
Investment Canada Act review
The ICA only imposes a pre-closing review when a foreign investor acquires control of an existing Canadian business above high monetary thresholds. For 2026 the threshold is CAD $1.452 billion in enterprise value for WTO private investors, CAD $2.179 billion for trade-agreement private investors, and CAD $578 million in assets for WTO state-owned investors; below these levels only a post-closing notification is required, and greenfield incorporations are generally not caught.
Immigration route for founders
IRCC closed the Start-Up Visa program to new applicants at 23:59 on 31 December 2025 due to a decade-long backlog; a narrow window remains for founders who already hold a 2025 letter of support from a designated organization (until 30 June 2026), and IRCC has said it will launch a new 'high-impact' entrepreneur pilot to replace it. Foreign founders can still incorporate and own a Canadian company without living in Canada; separate immigration status is only needed if they wish to work in Canada or reside long-term.
Timeline of decisions
- Law · officialFree Trade and Labour Mobility in Canada Act comes into force
The federal Act (Royal Assent June 26, 2025, part of the One Canadian Economy package) takes effect, recognizing goods, services and worker credentials accepted in any province as valid federally, reducing friction for businesses operating or registering across Canada.
Canada Gazette
- Guidance · officialCRA mandates online registration for Business Numbers and GST/HST accounts
The Canada Revenue Agency stopped accepting business number and program-account (including GST/HST) registrations by phone, requiring new businesses to register through Business Registration Online, streamlining and digitizing startup tax registration.
Canada Revenue Agency
- Decision · officialOttawa removes more than half of its CFTA exceptions
The federal government announced the elimination of a large share of its exceptions under the Canadian Free Trade Agreement (ultimately all 53), easing interprovincial market access for federally regulated goods, services and procurement.
Government of Canada
- Law · officialCBCA corporations must file beneficial ownership (ISC) information publicly
Federally incorporated companies began filing their individuals-with-significant-control data to Corporations Canada, launching a public, searchable beneficial-ownership registry, adding a transparency obligation to incorporating and maintaining a federal company.
Innovation, Science and Economic Development Canada
- Law · officialGovernment tables legislation to create a beneficial ownership registry
Federal legislation was introduced to amend the CBCA and establish a publicly accessible registry of company owners, setting the legal basis for the 2024 ISC filing regime and aligning Canada with anti-money-laundering transparency norms.
Innovation, Science and Economic Development Canada
- Guidance · officialOntario launches the Ontario Business Registry
Canada's largest province moved incorporation and 90+ business transactions to a 24/7 online registry, making it dramatically faster to register, incorporate, or update a business in Ontario.
Government of Ontario
- Law · officialCBCA requires a register of Individuals with Significant Control
Bill C-86 amendments took effect requiring most federal corporations to keep an internal register of beneficial owners (25%+ control), the first major corporate-transparency obligation imposed on Canadian companies.
Corporations Canada
- Law · officialCanada Business Corporations Act comes into force
The CBCA (Royal Assent March 24, 1975) replaced the discretionary letters-patent system with standardized articles of incorporation, establishing incorporation as a right and creating the modern federal framework under which businesses incorporate today.
Justice Laws Website (Government of Canada)
Sources
- ised-isde.canada.ca/site/corporations-canada/en/business-corporations/directors-and-offic
- laws-lois.justice.gc.ca/eng/acts/C-44/section-105.html
- ised-isde.canada.ca/site/investment-canada-act/en/investment-canada-act/thresholds
- canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/g
- canada.ca/en/revenue-agency/services/e-services/e-services-businesses/register.
- canada.ca/en/immigration-refugees-citizenship/news/notices/immigration-measures
- stikeman.com/en-ca/kh/canadian-ma-law/obca-amendments-removing-canadian-director-r
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