2 posts tagged with "non-resident"

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.

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.