Quick answer: An Australian can own 100% of a Canadian company without living in Canada. The usual route is to incorporate a subsidiary in British Columbia, Ontario or Alberta, where no Canadian resident director is required. Federal incorporation costs $200 in government fees, but it needs at least one resident Canadian director.
Canada is a natural next market for Australian businesses. Both countries share Westminster-style company law, English-language contracts and a tax treaty that dates back to 1980. Canada also gives you a base for selling into the US.
This guide is for Australian founders and SME owners who want a Canadian entity, whether to sign local clients, hire staff or open a North American office. It covers the structure, the paperwork, tax and what to plan for before you start a company in Canada from Australia.
Can an Australian own a company in Canada?
Yes. Canada places no general limit on foreign ownership of a private company. An Australian individual or an Australian Pty Ltd can hold all the shares.
What matters is who sits on the board, not who owns the shares:
- Shareholders can live anywhere.
- Directors may need to include a Canadian resident, depending on where you incorporate (see the table below).
- A few regulated sectors, such as telecommunications and broadcasting, carry Canadian-control rules. Check your sector before you start.
Choose your structure: subsidiary or branch
Most Australian businesses set up a Canadian subsidiary. A branch is simpler on paper but leaves the Australian parent exposed.
| Canadian subsidiary (corporation) | Branch of your Australian company | |
|---|---|---|
| Legal status | Separate Canadian company | Extension of the Australian company |
| Liability | Limited to the subsidiary | Parent is liable for Canadian debts |
| Tax | Canadian corporate tax on its profits | Canadian tax on branch profits, plus branch tax |
| Registration | Incorporate federally or in a province | Extra-provincial registration in each province you operate in |
| Best for | Hiring, local contracts, raising money in Canada | Short projects or testing the market |
If you trade in more than one province, a corporation formed in one province registers as “extra-provincial” in the others. Ontario, for example, charges no government fee for this filing.
Federal or provincial incorporation?
If no one on your team lives in Canada, incorporate in a province that does not require a resident director. Federal incorporation gives name protection across Canada, but it needs at least one resident Canadian on the board.
| Where you incorporate | Resident Canadian director needed? | Combined general tax rate 2026 |
|---|---|---|
| Federal (CBCA) | Yes: 25% of directors, at least 1 if you have fewer than 4 | Depends on the province you operate in |
| British Columbia | No | 27% |
| Ontario | No (removed in 2021) | 26.50% |
| Alberta | No (removed in 2021) | 23% |
| Quebec | No | 26.50% |
Pick the province where you will actually have staff, an office or most customers. A federal company still has to register in each province it operates in.
Other provinces have their own director rules. Check before choosing one outside this list.
How to register a company in Canada from Australia: step by step
You can do the whole incorporation online from Australia. Opening a bank account is usually the slowest step.
1. Pick the province where you will operate, using the table above.
2. Choose and reserve a name. Federal online filing runs the name check for you. Ontario needs a NUANS name report (from 13.80), and BC uses its own name request (30). You can also skip the name and incorporate as a numbered company (e.g. 1234567 B.C. Ltd.), then add a trade name later.
3. Set up the share structure. Decide who holds the shares: you personally, or your Australian Pty Ltd. A subsidiary owned by the Pty Ltd is the most common setup.
4. Appoint directors and a registered office. The registered office must be a street address in the province, not a PO box. If you have no office yet, a registered agent can provide one.
5. File the articles of incorporation online. Federal filing costs $200 in government fees, and provincial fees vary.
6. Register with the Canada Revenue Agency (CRA) for a 9-digit Business Number (BN). Federal and most provincial filings start this automatically. Add the program accounts you need: corporate income tax (RC), GST/HST (RT), payroll (RP) before paying Canadian staff, and import/export (RM) if you ship goods into Canada.
7. Open a Canadian bank account and register for provincial payroll and workplace insurance if you are hiring.
Documents you will need: passport copies for directors and shareholders, proof of address, the Australian parent’s company extract (ASIC) if it is the shareholder, and the proposed company name.
What it costs to incorporate in Canada from Australia?
Government fees are low; the real costs are the registered office and accounting. Share capital is not a cost: Canada has no minimum, so you can start with a nominal amount.
| Cost (CAD) | Federal | Ontario | British Columbia |
|---|---|---|---|
| Name check | Included in filing | NUANS report, from $13.80 | Name Request, $30 |
| Incorporation filing | $200 ($300 with 4-hour express) | $300 | $350 |
| Resident director needed | Yes, so add a nominee director fee | No | No |
| Annual government filing | $12 | Annual return (filed online) | Annual report, about $43 |
| Registered office / agent | Typically $400–900 a year | Typically $400–900 a year | Typically $400–900 a year |
For most Australian founders, BC or Ontario works out cheaper overall than federal, because you avoid paying for a Canadian nominee director. Budget separately for accounting: the company files a T2 corporate tax return every year. Government fees change, so check the registry before you file.
Tax for an Australian-owned Canadian company
Plan for the general corporate rate of 23% to 27%, not Canada’s well-known small business rate. That lower rate applies only to Canadian-controlled private corporations (CCPCs), and a company controlled from Australia is not one.
- Corporate income tax: 15% federal plus the provincial rate, for example 26.5% combined in Ontario and 23% in Alberta.
- GST/HST: Register once taxable sales pass $30,000 over four quarters. GST is 5%; HST ranges from 13% to 15% in the provinces that use it. BC, Saskatchewan and Manitoba add a separate provincial sales tax.
- Paying profits back to Australia: Under the Australia–Canada tax treaty, Canada withholds 5% on dividends to an Australian company holding at least 10% of the voting power (15% otherwise). The rate is 10% on related-party interest and 10% on royalties. Without the treaty, each would be 25%.
- On the Australian side: Canada is a “listed country” under Australia’s controlled foreign company (CFC) rules. That means fewer types of income from your Canadian subsidiary get taxed in Australia before you bring it home.
Treaty rates can change, so confirm the current position with a cross-border tax adviser before you structure dividends or intercompany charges.
Banking, address and moving to Canada
Bank account: Most major Canadian banks want to verify directors in person. Budget for a short trip, or work with an adviser who has banking relationships for non-resident owners. Many Australian founders start with a CAD business account from a FINTRAC-registered fintech, which can be opened remotely and gives you Canadian account details for local payments, then add a big-bank account later.
Registered office: Every company needs a street address in its province. A registered agent or virtual office covers this until you lease space.
Working in Canada yourself: Owning the company does not give you the right to work there. Common routes for Australians include:
- Business visitor: Short trips for meetings, with no hands-on work in Canada.
- Intra-company transfer: If you have worked for the Australian company for at least a year, it can send you to manage the new Canadian subsidiary.
- Working holiday (IEC): An open work permit for Australians aged 18 to 35.
Canada’s Start-up Visa stopped taking new applications at the end of 2025. A replacement entrepreneur pilot was announced for 2026 but had not opened as of the last update we checked, so don’t plan around it yet.
Common mistakes to avoid
- Paying for a nominee director you don’t need. Many Australians incorporate federally by default, then pay a Canadian nominee every year. BC, Ontario and Alberta let you run a fully Australian board.
- Skipping extra-provincial registration. A company that operates outside its home province must register there too. Skipping it can bring fines and make contracts harder to enforce in that province’s courts.
- Planning for the small business tax rate. An Australian-controlled company pays the general rate (23–27%), not the 9% federal small business rate.
- Missing annual filings. Federal companies file an annual return within 60 days of their anniversary. Repeated misses can lead to the company being dissolved.
- Assuming the company gives you a visa. Owning a Canadian company does not give you the right to work or live in Canada.
How OnDemand International helps
OnDemand International sets up Canadian companies for Australian founders end to end, without you needing to fly over for the incorporation itself:
- Advice on federal vs provincial incorporation and the right province for your plans
- Name search, articles of incorporation and corporate records
- Registered office address in your chosen province
- CRA Business Number, GST/HST and payroll registration
- Ongoing annual filings and compliance
Ready to expand into Canada? Talk to our Canada incorporation team for a fixed quote.
Going the other way? Read our guide on starting a company in Australia from Canada.