Company in Canada
Canada is a country located in the northern part of North America. It extends from the Atlantic to the Pacific and Arctic Ocean. It is the world’s largest country by total area. The capital city is Ottawa and its three largest metropolitan areas are Toronto, Montreal and Vancouver.
Company formation in Canada
Regulations applied to company registration in Canada are characterized with its simplicity and transparency. It can take up to couple of hours to open business in Canada. Opening a business in Canada can all be done remotely. However, to open a bank account, a personal appearance in this country is required.
Company in Canada is formed in form of written agreement between two or more persons who combine their funds to undertake joint business activities. Such contract should regulate crucial aspect of a company in Canada – way of sharing profits. Moreover, a company must have at least one director. If a person does not want to appear as a company director, it is possible to use the services of a nominee director. Company registration in Canada does not require any minimum statutory share capital. The companies operate based on legal regulations binding in particular provinces. Company formation in Canada is practiced by entrepreneurs conducting e-commerce, companies providing international business advisory and consultancy services, managing real estate assets and investment. It is also popular among the IT and cryptocurrency industries.
Taxes in Canada
Canada has signed agreements to prevent double taxation with over 90 countries, offering non-resident people the opportunity to establish several types of companies. Entrepreneurs who decide to open company in Canada can reduce corporate income tax to 5% and in some provinces by up to 0%. To take advantage of such tax breaks, a company in Canada must have a non-resident shareholder and the company must operate outside of Canada. Company registration in Canada obliges the entrepreneur to keep accounts, but there is no obligation to report it to local authorities. VAT applies only to services provided locally and varies from 5 to 15% depending on the location.
Ready made company in Canada / Purchase of a company in Canada
Buying a company in Canada is not widely practiced. The purchase of a company in Canada is an unprofitable solution due to the fact that the company registration is done quickly.