Company Formation Service in Canada

In Canada, only British Columbia Provincial Corporations are preferred by foreign investors as they are not required to appoint a local director. In other provinces and at the federal level, there is a requirement to appoint a local director.

The corporate tax rate in Canada is applied at the federal and provincial levels. At the federal level, the standard corporate tax rate is 38%, but with the federal tax credit, this rate is reduced to 28%. For Canadian-controlled private corporations (CCPCs), the rate can be as low as 9% with the small business deduction.

At the provincial level, corporate tax rates vary from province to province, and typically range from 0% to 16%.

‍ British Columbia: 2% – 12%
‍ Ontario : 3.5% – 11.5%
‍ Quebec : 3.2% – 11.5%
‍ Alberta : 2% – 8%

These rates can vary depending on the province in which the business is located and its annual income.

Individual income tax rates in Canada are graduated and applied at the federal and provincial levels. The federal income tax rates for 2023 are as follows: ‍ ‍ CAD$ 0
15% ‍ CAD$ 53,359 : 20.5 % ‍ CAD$ 106,717 26% ‍ CAD $165,430 to $235,675: 29% ‍ CAD$ 235,675 33% In addition to these rates, provincial and territorial governments also impose their own income tax rates, so the total tax rate will vary depending on your place of residence.

Incorporating a company in Canada can usually be completed within a few days. Online applications are usually processed within 1-2 business days. However, additional time may be required to prepare and approve the required documents and process the application. In total, the entire process can take approximately 5-7 business days.

There are several types of corporations in Canada. The most common are Sole Proprietorship (operated by a single person), Partnership (formed by two or more people), Corporation (limited liability of shareholders) and Co-operative (looking after the common interests of its members).