Canada

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CanadaGENERAL INFORMATION ABOUT THE JURISDICTION

Canada is one of the richest countries in the world with high income per capita. Despite the fact that this country is a member of OECD, G8, NATO, WTO, Union Francophonie, OAS, APEC and UN, it without doubt included into top 10 trading countries in the world. You would be offered a very good tax planning conditions for your business and country’s reputation leaves no uncertainty in legality of your business.

After signing North American Free Trade Agreement (NAFTA) between Canada, Mexico and the United States of America creating a trilateral rules-based trade bloc in North America with aim of elimination any boundaries in trade and investments between these countries. This provides not only with good logistic network and with more than 451 millions of customers but also good time zones for trading on American quote-driven market.

Owning business in Canada can help you to obtain permanent resident status.

Benefits:

  • Canada is a stable jurisdiction with very good reputation.
  • Minimum authorized capital is CAN $1.
  • No annual report required if business held outside of Canada.
  • No general shareholder meeting is mandatory in Ontario province.

1. TYPES OF COMPANIES:

The most popular legal forms for offshore operations are Limited partnership and Corporation.

2. NAMES OF COMPANIES

Name of the company must include its organization form (variants on English and French possible as Canada has 2 official languages) – «Limited»/«Limitée», «Incorporated»/«Incorporée» for Limeted partnership or Corporation (or abbreviations «Ltd. », «Ltée», «Inc. » or «Corp.» respectively).

Name of the company in British Columbia can be also a number but it needs to be additionally registered in special register. 

It is forbidden to use words that might be interpreted otherwise for instance (including French equivalent) “bank”, “trust”, “insurance”, “stock exchange market”, “university”, etc.

3. TERMS OF REGISTRATION

Terms of registration is 3-4 weeks.

4. COMPANY STRUCTURE

4.1. Director, Shareholder, Secretary.

Minimum one is required. Can be natural person or legal entity. No residential formalities. In some provinces there different requirements to the age (from 19 years).

In New Brunswick one person can be director, shareholder and secretary at the same time.

5. TAXATION

Operations held outside the country are not subject to taxation.

6. ANNUAL REPORTS

If the operations were held outside the country there are no obligations for annual report. On the other hand if there are operations carried in country there are two reports that has to be filed – provincial and federal.

7. CONFIDENTIAL INFORMATION

Canada is the only country out of G20 where information about bank account holders is not reviled. Information about the companies that are registered on the territory of Canada (due to the Privacy Act and Personal Information Protection and Electronic Documents Act).   

Nevertheless, it has to be noted that Canada is a member of mutual information dissemination agreement (currently members of abovementioned agreement are 20 countries; signed but not enforced agreements with 2 countries and agreements with 8 more countries are under negotiation). 

8. CURRENCY CONTROL

None.

9. AGREEMENTS ON AVOIDANCE OF DOUBLE TAXATION.

Canada has entered into approximately 100 agreements. All countries: http://www.fin.gc.ca/treaties-conventions/in_force--eng.asp

10. APOSTLE  

Canada is not a member of Hague convention of 1961 consequently, we can not apostle documents within the territory of Canada. All set of documents is being notarized by a notary and it is included into total price. As an alternative our company can suggest notarization of Ministry of Foreign Affairs of Canada and, if necessary, notarization in Embassy the country of client’s residence.  We can also offer you obtaining an apostle in the Embassy of the country that member of Hague convention.