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How to setup a business in Canada as a 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 guide 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 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.