6 posts tagged with "Canada"

When expanding a business across different provinces in Canada, it is crucial to understand the process of extra-provincial registration. This legal requirement ensures that a company operating in a province, while originating from another jurisdiction, complies with the respective provincial regulations. However, it is important to note that the costs associated with extra-provincial registration can vary significantly from province to province. In this blog post, we will delve into the details of extra-provincial registration costs across different Canadian provinces, shedding light on the fees, name search expenses, and annual charges involved.

Extra-Provincial Registration in Canada​

Extra-provincial registration refers to the process of registering a company from one jurisdiction to operate in another province within Canada. This registration becomes necessary when a business entity is "carrying on business" in a province other than its original jurisdiction. In addition to complying with provincial laws, this process ensures that the company can access local benefits and opportunities while operating within the new province.

Fee Variations in Extra-Provincial Registration​

It is essential for businesses planning to expand across provinces to be aware of the varying fees associated with extra-provincial registration. Below, we present a breakdown of the fees, name search expenses, and annual charges for each province in Canada.

Extra-Provincial Registration Fees​

The fees of extra-provincial registration in Canada vary significantly across provinces. Some provinces, such as Alberta and Ontario, offer relatively lower fees with no or minimal fees, while others, like Newfoundland & Labrador and Quebec, have higher upfront and annual charges associated with the process.

Considerations for Federal Jurisdiction Corporations​

In certain cases, federal jurisdiction corporations seeking to register extra-provincially may be exempt from paying the name fee. This exemption can provide some relief to businesses operating under federal jurisdiction, potentially reducing the overall fees of extra-provincial registration.

Additional Expenses​

In some jurisdictions a local address and agent or attorney are required to complete the extra-provincial registration process. These requirements may cause businesses without a physical presence in that jurisdiction to incur additional expenses.

Conclusion​

Expanding a business across provincial borders in Canada requires careful consideration of the extra-provincial registration fees. By understanding the fees, name search expenses, and annual charges associated with different provinces, entrepreneurs can better plan their expansion strategies and allocate resources effectively. It is advisable to consult with legal professionals or incorporation service providers who specialize in extra-provincial registration to ensure compliance with the specific regulations of each province and to navigate the incorporation process smoothly.

Disclaimer​

The information provided in this blog post is based on the available data at the time of writing.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Starting a business in a foreign country can be an exciting and rewarding venture. If you're considering Canada as your entrepreneurial destination, you might be wondering if it's possible for a non-resident to register a business there. The good news is that Canada offers opportunities for non-residents to establish their businesses within its borders. In this blog post, we will explore the options available and guide you through the process of setting up a business in Canada as a non-resident.

Option 1 - Sole Proprietorship​

One option for non-residents to register a business in Canada is through a sole proprietorship. While the rules vary between provinces, it is generally possible for non-residents to establish a sole proprietorship. However, it's important to note that resident Canadians will have an easier time registering, as they already possess a Social Insurance Number (SIN) that identifies them with the Canada Revenue Agency (CRA). Non-residents without a SIN will need to fulfill additional requirements to register as a sole proprietorship.

Option 2 - Corporation​

Another avenue available to non-residents is the incorporation of a business. Certain provinces in Canada, including Alberta, British Columbia, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Quebec do not have a resident director requirement. This means that even if you and your team do not live in Canada, you can incorporate your business in these provinces. However, it's worth noting that if you opt for federal incorporation, a 25% resident director requirement exists, making it impossible to incorporate at the federal level as a non-resident. Before incorporating, it's essential to review the specific requirements of each province.

For more information read our Blog Post comparing Sole Proprietorship vs Incorporation.

The Importance of a Business Address​

Regardless of whether you choose a sole proprietorship or a corporation, you will need a business address in the relevant jurisdiction. This address will serve as the official location of your business. Ribbon offers a Mailing Address Service that you can utilize as your business address, simplifying the process of establishing a presence in Canada.

Guiding You Through the Process​

Setting up a business as a non-resident in Canada may seem daunting, but Ribbon is here to help. Our platform guides you through the process of setting up a corporation, providing you with the necessary information and support along the way. Whether you need assistance with understanding the differences between federal and provincial incorporation or obtaining a business address, Ribbon is your go-to resource.

Conclusion​

In conclusion, Canada welcomes non-residents who wish to establish businesses within its borders. Whether you choose to register as a sole proprietorship or incorporate a company, it's essential to familiarize yourself with the specific requirements of the province in which you plan to operate. By leveraging the right resources, such as Ribbon, non-residents can navigate the process smoothly and turn their business aspirations in Canada into a reality. Don't let your non-resident status deter you; seize the opportunity and embark on your entrepreneurial journey in the Great White North.

The advent of remote work has opened up a world of opportunities for freelancers, enabling them to launch North America companies from anywhere in the world. In this blog post, we will explore the benefits and best practices for a freelancer to establish a business presence in North America.

Why Incorporate in North America as a freelancer?​

Incorporating your business in North America, specifically in Canada, offers several advantages for freelancers looking to work with companies in the region. Here are some compelling reasons to consider incorporation

Increased Earning Potential:​

• Being perceived as a local business instead of a remote individual freelancer can increase the amount you can charge for your services.

Credibility and Trust:​

• Incorporating your business enhances your professional image and instills trust among clients. A registered local company is perceived as more reliable and established than an individual freelancer.

Legal Protection:​

• Incorporating provides a legal shield, separating your personal assets from your business liabilities. In case of any legal disputes or financial obligations, your personal assets will generally remain protected.

Access to North American Market:​

• By incorporating in Canada, you gain easier access to the North American market and can position your business as a local entity. This can lead to better client acquisition and business opportunities.

Possible Immigration Benefits:​

• In some cases having a Canadian business can make it easier to immigrate to Canada. For example the Start Up Visa Program requires individuals to have a Canadian incorporate businesses at the time they receive their permanent residency.

Tax Benefits:​

• Canada offers several tax benefits for small businesses, including deductible expenses and tax credits. Incorporating allows you to take advantage of these benefits and optimize your tax planning strategies. Just a note, many of these tax benefits are only for Canadian Controlled Private Corporations (if a Canadian resident owns/controls >50% of the company).

Best Practices for Freelancing in North America​

To succeed as a freelancer working with North American companies, consider the following best practices

Cultivate a Professional Online Presence:​

• Establish a strong online presence through a well-designed website, an updated portfolio, and active engagement on relevant social media platforms. This will boost your credibility and attract potential clients.

Provide Clear Contracts and Agreements:​

• Create detailed contracts or service agreements that clearly outline the scope of work, payment terms, deadlines, and any other relevant terms and conditions. This will help manage expectations and protect both parties involved.

Maintain Professionalism and Timeliness:​

• Deliver your work on time and maintain a high level of professionalism in all interactions. Prompt communication, meeting deadlines, and providing quality work will strengthen your reputation and foster long-term client relationships.

Secure Local Payment Methods:​

• Ensure that you have secure payment methods in place to receive payments from your North American clients. Consider using platforms like PayPal, Stripe, Wise or other reliable payment gateways to facilitate smooth financial transactions. Take a look at our Blog Post on getting a business bank account as a non-resident.

Seek Professional Advice:​

• Consult with legal and tax professionals who specialize in international business and freelancing to ensure compliance with local regulations, tax obligations, and any cross-border implications.

Conclusion​

Freelancing for North American companies while working remotely offers an exciting opportunity for global professionals. By incorporating your business in Canada, you can enhance your credibility, access the North American market, benefit from tax advantages and potentially increase your earning potential. With the right approach, dedication, and professionalism, freelancing for North American companies can be a rewarding and lucrative endeavor from anywhere in the world.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

When it comes to incorporating a business in Canada, entrepreneurs have the option to choose between federal and provincial jurisdictions. While both federal and provincial corporations enjoy the ability to sell products and services across Canada and globally, there are trade-offs to consider. Let's explore the key differences between these two options by comparing Federal vs Ontario (Provincial) incorporation:

Name Protection​

Federal incorporation offers a higher level of name protection, ensuring your business name is safeguarded in every Canadian jurisdiction. On the other hand, Ontario incorporation provides name protection within the province of Ontario only. It's important to note that this protection applies to the legal name, and separate trademark filings are required to protect your trade name.

Extra-Provincial Registration Requirements​

Both federal and Ontario corporations must undergo extra-provincial registration in each province or territory where they establish a physical presence. However, there is an exception for Ontario corporations. They are not required to register for extra-provincial registration within their home province, Ontarios.

Resident Director Requirement​

Federal corporations must have a minimum of 25% resident Canadian directors, whereas Ontario does not impose this requirement. This lack of a resident Canadian director requirement makes Ontario incorporation an attractive choice for foreign business owners looking to start a Canadian business. Typically we find that businesses with resident Canadian directors (individuals living in Canada that are Canadian citizens or permanent residents) choose to incorporate federally while businesses without resident Canadian directors, or who might want to live abroad, typically choose to incorporate in Ontario.

Movement of Headquarters​

Another benefit for federal corporations in Canada that enables them to move their headquarters between provinces is the flexibility it offers in terms of jurisdiction. Federal corporations have the advantage of being able to easily transfer their headquarters from one province to another without having to go through a complex process of dissolution and re-incorporation. This flexibility can be particularly advantageous for businesses that anticipate changes in their operational needs or want to take advantage of economic opportunities in different provinces. This means that federal corporations can adapt to changing circumstances with relative ease, making it a versatile choice for businesses seeking to expand or relocate within Canada while maintaining the benefits of federal incorporation.

The Ontario and Federal governments have been doing an impressive job making it straightforward to complete the extra-provincial registration in Ontario as a federal company. This is in contrast to some other provinces where the extra-provincial registration costs can be greater than $500, and may have significant annual fees.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.

Managing finances and establishing a bank account is a crucial aspect of running a business, even if you don't reside in the country where your business operates. For entrepreneurs with Canadian businesses who are not based in Canada, there are several options available to open a business bank account. In this blog post, we will explore three methods to obtain a business bank account for your Canadian business when you don't live in Canada. Additionally, we will discuss the benefits and drawbacks of each approach, along with a recommendation for expert assistance from Ribbon.

Use a Non-Bank Digital Account​

One of the most convenient and accessible ways to open a business bank account for your Canadian business is through online banking platforms like Wise or Airwallex. These platforms offer easy setup processes that can be completed remotely. They are particularly suitable for businesses that generate revenue from online services such as Shopify, Klarna, Afterpay, eBay, PayPal, and more. While these accounts do not provide chequing services and may not offer credit card options, they are a viable solution for managing finances digitally.

Benefits​

• Quick and straightforward setup process.
• Can be established fully remote.
• Ideal for businesses relying on online revenue streams.

Drawbacks​

• Lack of chequing account services, limiting compatibility with certain financial services.
• Credit card options may not be available.
• Accounts typically lack insurance coverage provided by Canadian banks.

Work with Banks with Branches in Your Home Country and Canada​

Another option for obtaining a business bank account for your Canadian business is to partner with banks that have branches in both your home country and Canada. This approach allows you to open a fully functional Canadian bank account remotely, leveraging the established presence of the bank in your home country.

Benefits​

• Quick and straightforward setup process.
• Remote account setup is possible.
• Enables seamless international banking operations.

Drawbacks​

• Banks may require your business to reach a certain size or meet specific criteria.
• Some banks might have limitations or strict requirements for remote account setup.

Fly to Canada and Open a Bank Account in Person​

The traditional method for non-resident individuals to open a Canadian business bank account involves traveling to Canada and personally visiting a bank branch. Although this option requires more effort and resources, it provides access to the full suite of services offered by Canadian banks, including credit products like credit cards.

Benefits​

• Complete access to Canadian banking services, including credit products.
• Ability to establish a comprehensive Canadian bank account.

Drawbacks​

• Requires physical travel to Canada.
• All shareholders and directors may need to be present to open the account.

Conclusion​

Establishing a business bank account is a critical step in managing your Canadian business's financial affairs, and choosing the right method will ensure smooth financial operations and growth. To help you think through the options, Ribbon offers a free business bank account consultation with every business incorporation where their team will help you understand the available options.

Doing business in Canada requires adhering to various legal requirements, and one important aspect is extra-provincial registration or extra-territorial registration. In this blog post, we will explore the concept of extra-provincial registration, focusing on Ontario as an example. We'll delve into the criteria that determine whether a business needs to register as an extra-provincial corporation.

What is Extra-Provincial Registration?​

In Canada, each province and territory has its own set of rules and regulations governing business activities. When a business operates outside of its home province or territory, it may be required to register as an extra-provincial corporation or an extra-territorial corporation, depending on the jurisdiction. This process ensures that businesses are accountable and comply with the local laws and regulations in the areas where they conduct business.

Extra-Provincial Registration in Ontario​

Ontario, one of Canada's most populous provinces and a hub for economic activity, follows its own guidelines for extra-provincial registration. A business is considered an extra-provincial corporation in Ontario and is required to register if it meets any of the following criteria:

Physical Presence:​

If the business has a resident agent, representative, warehouse, office, or any other place where it carries on its business in Ontario, it must register as an extra-provincial corporation.

Real Property Ownership:​

If the business holds an interest, other than by way of security, in real property situated in Ontario, it is obligated to register.

Business Operations:​

If the business otherwise carries on business in Ontario it must register as an extra-provincial corporation.

Further Clarity on the Definition of an Extra-Provincial Corporation​

However, it is important to note that not all businesses are required to register as extra-provincial corporations. The Extra-Provincial Corporations Act in Ontario provides additional clarity. A business is not considered an extra-provincial corporation based solely on if it:

Takes Orders or Trades Goods:​

If a business only takes orders for or buys or sells goods, wares, and merchandise within Ontario, it is not considered an extra-provincial corporation.

Offers or Sells Services:​

Similarly, if a business exclusively offers or sells services of any type within Ontario but doesn’t have a permanent presence, ex. Sales representatives that travel through the province, sales through online marketing, etc., it is not obligated to register as an extra-provincial corporation. By providing this clarification, Ontario acknowledges that businesses solely engaged in trade or service activities without a physical presence or real property ownership may not require extra-provincial registration. This flexibility ensures that businesses operating within specific parameters are not burdened with additional registration requirements.

Conclusion​

Extra-provincial registration is an essential process for businesses operating in Canada across multiple provinces and territories. In Ontario, businesses meeting specific criteria related to physical presence, real property ownership, or business operations are required to register as extra-provincial corporations. However, clarifications under the Extra-Provincial Corporations Act relieve businesses engaged solely in trade or service activities from this obligation.

Understanding the extra-provincial registration requirements and exemptions is crucial for businesses aiming to expand their operations in Canada.

Ribbon Makes Business Easy​

To keep a corporation compliant is challenging. Ribbon gives entrepreneurs the tools to help them stay compliant. From setting up minute books, maintaining registers to annual filings, Ribbon let's Entrepreneurs focus on their business. Learn more about Ribbon or email support@getribbon.ai.