Offshore Company in Canada

General information

Tax rate

Time of establishment of the company

Minimum capital

Forming a company in Canada

Canada is the second largest country in the world and has a population of around 34 million. Its economic and technological development has been stimulated by its trade ties with the United States, who purchase almost 80% of Canada’s exports. Boasting rich natural resources, this country has been able to develop on an equal footing with the U.S. and to move quickly from a primary economy (based on agriculture) to one based on services, with a strong industrial sector.

Canada can be presented as a new offshore jurisdiction, only certain provinces of Canada have a similar status to an offshore company with almost non-existent tax (only 5%) if the business is conducted outside Canada.

Canada and Hong Kong are the destinations that offer the best image for Offshore companies given that the main difficulty in using an offshore company is often the negative exotic image presented when the company is created on a remote island. This is not the case in Canada and, unknown to the public, just two provinces (regions) allow this application.

Canada allows the use of a nominee director, which avoids the need to appear in the Public Registry.

Tax system

Corporate income tax may be reduced to 5%, even 0% in some provinces.

Accounting

The accounts must be kept by the customer but do not need to be submitted to the local government.

VAT applies only to services performed locally and ranges from 5% to 15% depending on the province.

Also, if you do operate in Canada, you can invoice your customers exclusive of tax and you are not subject to VAT.

Conditions

The formation of an offshore company requires a number of essential elements listed below. These are always included when setting up a company to guarantee adequate operations.

Type of company

The most common type of company in Canada is the INC. (Incorporated company) and is a limited liability company with capital.

Corporate headquarters

The company must have a head office in Canada. There is also an optional virtual office service available complete with local telephone number and personalized standard.

Minimum capital

The minimum capital can be 1 CAN$ in Canada, i.e. there is no minimum capital.

Bank account

A multi-currency company bank account will be opened with Internet access and a Visa or MasterCard ATM card.

Director

The Director may be of any nationality, however, a Nominee Director service offering additional privacy can be provided.

Shareholders

The Nominee Shareholder service is also a stock solution for offshore companies enabling privacy and anonymity guaranteed.

Set-up time

The easiest way to have your company set up in 24 hours is to choose a Ready-made company from a list of names of existing companies incorporated in advance to minimize delays. A period of 5-7 days plus postage is needed to set up a custom company.

Holdings

Companies in Canada can serve as Holdings and may hold movable or immovable assets.

Renewak

The company has to be renewed each year, which involves paying a stamp duty, renewing the domicile of the corporate headquarters and the reappointment of the Nominee Director and Shareholder (if applicable).

Conditions for forming a company

The final condition is that the business activity is legal both in Canada and in the country in which the business is conducted. Forming an offshore company should not and cannot be used to legitimize an illegal activity.

The British authorities do not authorize financial activities, banking, betting, online gambling, and insurance, without an existing license.

Company registration procedure

Taxes and finances

Other information