Starting a Business · Canada
Starting a Business - Canada
Canada places no restrictions on foreign ownership of company shares and offers fast, low-cost online incorporation, but the federal CBCA requires that at least 25% of directors be resident Canadians (or at least one if there are fewer than four). Foreigners can avoid the director-residency hurdle by incorporating in provinces such as Ontario, British Columbia, Alberta and Quebec, which have no director-residency requirement. Setup is procedurally simple and quick, so the main friction is the resident-director rule at the federal level rather than ownership limits.
There is no general limit on foreign or non-resident ownership of a Canadian corporation's shares; a non-resident may own 100% of the company. Restrictions apply only in specific regulated sectors (e.g., telecom, broadcasting, transport).
Under CBCA s.105(3), at least 25% of directors must be resident Canadians; if a corporation has fewer than four directors, at least one must be a resident Canadian. A 'resident Canadian' is a citizen or permanent resident ordinarily resident in Canada.
Several provinces—including Ontario, British Columbia, Alberta, Quebec, Nova Scotia and New Brunswick—have no director-residency requirement, allowing a foreign founder to incorporate provincially with a fully non-resident board.
Federal incorporation is a five-step online process: choose a corporate name (word or numbered), establish corporate structure (registered office address and board of directors), and submit the application via the Online Filing Centre. Incorporation also provides a federal business number, corporate income-tax account, and optional GST/HST, payroll and provincial registrations.
Online federal incorporation costs CAD 200 and is typically processed within one business day; an express service is available for an additional CAD 100 with processing in about four hours.
The CBCA imposes no minimum share capital; a corporation may issue shares for any consideration set by the directors, so a business can be incorporated without a prescribed paid-up capital amount.
Machine-assisted translation · verified 5/23/2026 · orientation, not legal advice. English version →