Are you an Indian entrepreneur considering expanding your business in the growing Canadian economy? With a business-friendly environment, access to North American markets, and government incentives, setting up a business in Canada from India offers tremendous opportunities.
According to the World Bank’s Ease of Doing Business Index, Canada ranks 23rd globally in ease of doing business, with a well-regulated corporate structure and strong economic policies. The country also has over 1.4 million businesses, a low corporate tax rate of 15%, and numerous free trade agreements (FTAs), making it an ideal destination for Indian entrepreneurs looking to scale globally.
If you’re looking to form a company in Canada from India, this detailed guide will walk you through the process, requirements, legal structures, benefits, and challenges.
Benefits of Incorporating a Business in Canada from India
- Access to a Strong Economy: Canada is the 10th largest economy globally, with a GDP of over $2.1 trillion. The country has a stable banking system, making it appealing for foreign business owners.
- Low Corporate Tax Rates: The 15% federal corporate tax rate is one of the lowest among developed nations.
- Ease of Business Incorporation: The Canadian government has a well-defined process that allows Indian entrepreneurs to register a company in Canada remotely.
- Trade Agreements: Canada has FTAs with over 50 nations, such as the United States, European Union, and Mexico.
Steps to Form a Company in Canada from India
In order to set up your business in canada as an Indian entrepreneur, you must follow the steps given below:
Step 1: Choose the Right Business Structure
Before you register a company in Canada from India, you need to select a legal structure.
The most common options are:
- Sole Proprietorship – Straightforward and affordable but provides no personal liability protection.
- Partnership – Shared responsibility and profits among two or more people.
- Corporation – Registering a corporation in Canada offers liability protection, better tax planning, and increased credibility.
For Indian entrepreneurs, the best option is a corporation (federal or provincial) as it offers liability protection and makes it easier to attract investors.
Step 2: Select Between Federal and Provincial Incorporation
When forming a company in Canada as an Indian entrepreneur, you can choose between:
- Federal Incorporation: Gives your company the ability to operate across Canada with a more recognized name.
- Provincial Incorporation: Limits operations to a certain province but offers easier compliance and registration.
If you plan to expand beyond one province, federal incorporation is the best option.
Also Read: Federal vs Provincial Incorporation in Canada
Step 3: Register the Company Name
Your company name has to be unique and comply with Canadian regulations. You can check name availability through NUANS (New Upgraded Automated Name Search). Our experts from OnDemand International can help you through this stage.
Step 4: Appoint a Canadian Resident Director
Under Canadian corporate law, at least 25% of a company’s directors must be Canadian residents.
However, if you don’t have a Canadian resident partner, you can:
- Partner with a Canadian resident
- Use a nominee director service
Step 5: File Incorporation Documents
To form a company in Canada from India, you need to submit incorporation documents to either Corporations Canada (for federal registration) or the respective provincial registry.
The primary documents include:
- Articles of Incorporation
- Name Reservation Report
- Business Number (BN) application with Canada Revenue Agency (CRA)
Our experts can assist you gather and file the required documents with the Canadian government authorities.
Step 6: Apply for a Business Number (BN) and Register for Taxes
After incorporating your business, you must acquire a Business Number (BN) from Canada Revenue Agency (CRA). This is required for:
- GST/HST registration (Goods and Services Tax/Harmonized Sales Tax)
- Corporate Income Tax filings
- Payroll and Import-Export Registration
Step 7: Open a Canadian Business Bank Account
You must also open a Canadian business bank account for your financial transactions. Most banks require a physical presence in Canada to open an account.
Documents Required to Open a Company in Canada from India
- Valid passport of the business owner(s)
- Business name approval (NUANS report)
- Articles of Incorporation
- Proof of business address in Canada
- Shareholder agreement (if applicable)
- Tax registration documents
- Business plan (if applying for business immigration)
Is It Possible to Remotely Register a Business in Canada as an Indian?
Yes, it is possible to register a business in Canada from India remotely. However, you may need a Canadian resident director or use nominee director services.
To simplify the process and ensure compliance, Indian entrepreneurs can seek assistance from OnDemand International’s Canadian incorporation experts, who provide end-to-end business setup solutions.
Best Business to Start in Canada as an Indian Entrepreneur
1. IT and Software Services
With Canada’s growing tech industry and high demand for software development, Indian entrepreneurs can capitalize on IT consulting, mobile app development, and SaaS businesses.
Looking to register a consulting business in Canada? Read our guide today.
2. E-commerce and Retail
Online businesses, including dropshipping and digital storefronts, are highly profitable due to Canada’s increasing online shopping trends.
3. Franchise Business
Investing in well-established franchises such as Tim Hortons, McDonald’s, or Subway can be a lucrative opportunity with lower risk.
4. Export and Import Trade
Canada’s trade agreements make it easy for Indian entrepreneurs to import Indian goods like textiles, spices, and electronics and export Canadian products to India.
Looking to start an import-export business in Canada? Get in touch with our industry experts today.
5. Food and Restaurant Business
Opening an Indian restaurant or food chain in Canada can be a profitable venture, as Indian cuisine is growing in popularity across Canadian cities.
6. Financial and Consulting Services
Providing financial advisory, business consulting, or tax services can be a high-demand industry, especially catering to Indian expatriates and new immigrants.
Conclusion
Expanding to Canada can provide Indian entrepreneurs with access to a global market, lower tax rates, and business-friendly regulations. The process to form a company in Canada from India is straightforward, provided you follow the legal requirements. Whether you’re looking to register a company in Canada from India for global expansion or leverage Canada’s start-up ecosystem, now is the right time to make your move!
If you need assistance, contact business incorporation experts from OnDemand International to simplify the process. From business incorporation to bank account opening, our business professionals will guide you through every step.
FAQ’s
Yes, you can register a business in Canada from India remotely. However, you may need a Canadian resident director or use nominee director services. OnDemand International’s Canadian incorporation experts can assist you with this process.
Some of the best business opportunities include:
- IT and Software Services
- E-commerce and Retail
- Franchise Business
- Export and Import Trade
- Food and Restaurant Business
- Financial and Consulting Services
The incorporation process typically takes between 1 to 3 weeks, depending on the province and additional approvals required.
No, physical presence is not mandatory. However, opening a business bank account may require a visit or assistance from a Canadian legal representative.
