Why Canada
Canada is a stable country with a mature legal system, English-language environment and immediate proximity to the US market. It is popular among IT companies and agencies serving North America.
Tax System
| Type | Rate |
|---|---|
| Federal corporate tax | 15% |
| Provincial tax (Ontario) | 11.5% |
| Provincial tax (British Columbia) | 12% |
| Combined rate (approx.) | ~26–27% |
| GST/HST | 13–15% |
| Dividend withholding (non-residents, treaty) | 15% |
Popular Provinces
| Province | Highlights |
|---|---|
| Ontario (Toronto) | Financial centre, largest market |
| British Columbia (Vancouver) | Tech ecosystem, close to Seattle |
| Quebec (Montreal) | French, IT tax credits |
| Alberta | No provincial sales tax |
Who It Is For
- IT companies and agencies with US and Canadian clients
- Startups planning to enter the North American market
- Trading companies with US market access (CUSMA/USMCA)
- Immigrants who have obtained Canadian permanent residence
Cost & Timeline
| Item | Amount |
|---|---|
| Federal incorporation | CAD $200 |
| Provincial registration | CAD $300–500 |
| Annual maintenance + accounting | from CAD $2,000/yr |
| Registration time | 1–5 business days |
Pros & Cons
Pros:
- Stable legal system, English language
- Proximity to US market, CUSMA agreement
- Good banking (RBC, TD, BMO)
- Reputation as a reliable jurisdiction
- Stripe, Wise, PayPal — native
Cons:
- Combined tax ~26–27% — relatively high
- Complex tax system (federal + provincial + HST)
- Bank account opening for non-residents is difficult
- Strict FINTRAC AML compliance
FAQ
Can a non-resident open a Canadian company?
For a federal corporation, 25% of directors must be Canadian residents. Some provinces (BC, Quebec) have no resident director requirement.
Is Canada suitable for SaaS startups?
For companies with Canadian and US clients — yes. As a global jurisdiction, it is more expensive than Cyprus or Estonia.