How Indian Register and Immigrate their Business in Canada? | A Complete Guide

For entrepreneurs in India seeking to expand internationally, Canada offers a welcoming and business-friendly environment with straightforward processes and multiple avenues for business growth. Whether it’s setting up a new venture or expanding an existing business, Canada’s stable economy, skilled workforce, and supportive government policies make it a favorable destination. Here’s an in-depth guide covering essential steps, options, and requirements for Indian entrepreneurs aiming to establish a business in Canada.

Read More: Do you want cheapest incorporation in Canada?

Canadian Immigration Programs for Business Owners from India

Canada has developed several immigration programs that allow foreign entrepreneurs to set up and operate businesses while facilitating pathways to permanent residency.

a. Intra-Company Transfer (ICT) Program

The ICT program allows Indian companies to transfer qualified employees to Canadian branches or subsidiaries. This work permit facilitates business expansion and allows workers to pursue permanent residency after a year of employment in Canada. It’s suitable for established businesses with proven operational records in India seeking to expand to the Canadian market.

b. Entrepreneur Work Permit (C11)

This option is ideal for entrepreneurs and investors willing to start or buy a Canadian business. The C11 permit provides entrepreneurs with temporary residence and can lead to permanent residency after a year of business operations, provided certain performance metrics are met.

c. Start-Up Visa (SUV) Program

This competitive program grants permanent residency to entrepreneurs with innovative, scalable business ideas that can create jobs in Canada. Applicants must secure the backing of a Canadian venture capital firm, angel investor, or business incubator, making this pathway ideal for technology and high-growth industries.

d. Provincial Nominee Programs (PNPs)

Each Canadian province has unique PNPs tailored to local economic needs. For instance, British Columbia’s PNP is suited for tech businesses, while Ontario offers a stream for general business entrepreneurs. These programs are beneficial for entrepreneurs committed to specific provinces and come with unique residency pathways.

Key Business Structures in Canada

Choosing the right business structure is critical for compliance, taxation, and risk management. In Canada, the main business types include:

• Sole Proprietorship: A simple and cost-effective setup, ideal for small businesses with single ownership. However, the owner is personally liable for all business debts.
• Partnership: Allows shared ownership among partners, with shared responsibility for debts and profits. Suitable for small to medium-sized ventures with multiple owners.
• Corporation: A separate legal entity from its owners, providing limited liability protection. Corporations have more regulatory requirements but offer a professional image and growth potential.
• Subsidiary: Indian companies are attracted to Canada’s developed industries like manufacturing, energy, and pharmaceuticals, prompting their interest in establishing a local presence. Opening a subsidiary company can be an advantageous strategy for international firms seeking incorporation in Canada.
• Branch Operations: Involves setting up a branch office in Canada, which enjoys tax advantages but does not provide legal separation from the parent company, making the parent liable for obligations and debts.

Choosing a business structure aligned with your goals and resources is vital as it impacts legal obligations, tax requirements, and potential liability.

How to Register a Business in Canada for Indian?

• Choose a Business Structure: Decide on the type of business structure that best suits your needs, such as a sole proprietorship, partnership, or corporation.
• Select a Business Name: Choose a unique name for your company that complies with Canadian naming rules and is not already in use by another business.
• Obtain a Business Number: Acquire a Business Number (BN) or an NEQ (Quebec only) to identify your business for tax and administrative purposes.
• Decide on Federal or Provincial Incorporation: Determine whether you want to incorporate your business at the federal or provincial level, considering the specific requirements and benefits of each.
• Create Articles of Incorporation: Prepare articles of incorporation outlining the structure, share classes, directors, and any restrictions of your corporation.
• Register Your Company Name: Check the availability of your chosen company name and reserve it through the appropriate channels, such as the NUANS or Canada’s corporate registry.
• Establish a Registered Office Address: Every business must have a registered office where official records are kept, so ensure you have a valid address for this purpose.
• Gather Required Documents: Collect all necessary documentation, including articles of association, proof of registered office address, and details about the firm’s paid-up capital.
• Complete the Registration Process: File your company registration request along with the required documents with the government authorities to officially register your business.
• Register for Taxes: Sign up for a GST/HST account if your anticipated annual revenue is $30,000 or higher to comply with tax regulations.

Documents Required to Register a Business in Canada from India

• Statutory documents of the company: This includes the articles of incorporation for corporations or deeds of establishment for other business structures.
• Personal information of the owners/directors: You will need to submit details like name, address, and identification documents for all individuals with significant control over the company.
• Declaration appointing the company directors: A document stating who the directors of the company will be.
• Proof of registered office address: Every company must have a registered office address where official records are kept.
• Business Number (BN) or NEQ (Quebec only): A unique 9-digit number assigned by the government to identify your business for tax and administrative purposes.
• Paid-up capital details: Information on the amount of capital invested in the company.
• Passport/visa copies: If you are a non-Canadian citizen, you will need to provide copies of your passport and visa.
• Name search documentation: Proof that you have checked the availability of your chosen company name and reserved it through the NUANS or Canada’s corporate registry.
• Translation and notarization of shareholder identity documents: If any shareholders are not Canadian citizens, their identity documents may need to be translated and notarized.

Cost for Canadian Incorporation for Indian Residents

The cost of forming a company in Canada from India varies depending on the province or territory and the type of business entity being registered. Here are some key points about the costs:

Sole proprietorship: The cost of registering a sole proprietorship is generally under $100, including the registration fee (around $60-$80) and additional fees for the official business name search.

Corporation: Incorporation costs start at around $200 for a federal incorporation fee and can cost as much as $350 for provincial incorporation. Additional fees for the business name search will also apply.

Alberta: The government fee for incorporating an Alberta corporation is $275, plus a service fee charged by the registry agent or service provider that processes the application.

British Columbia: The cost of incorporating a company in British Columbia is not explicitly mentioned, but it states that companies usually seek legal guidance to ensure everything is done properly. However, there is an alternative of using OnDemand International‘s incorporation services, which include a full package with a name search report, Articles of Incorporation, company formation documents, and a business number.

Federal incorporation: It costs $12 to incorporate a business or not-for-profit corporation federally and takes 1 day to process.

So in summary, the cost can range from around $60-$80 for a sole proprietorship to $200-$350 for provincial or federal incorporation, plus additional fees for name searches and legal guidance if needed. The exact cost will depend on the specific province or territory and the type of business entity being formed.

Benefits for Incorporating a Business in Canada from India

Access to Capital

• Companies in Canada, especially corporations, have easier access to capital through borrowing at lower rates and raising funds by selling shares or bonds to investors, known as shareholders.
• This access to capital is crucial for business growth and expansion, providing financial resources to support various operational and strategic initiatives.

Lower Tax Rates

• Corporate entities in Canada benefit from lower tax rates compared to personal income tax rates, making incorporation an attractive option for tax efficiency and savings.
• The federal tax rate for Canadian-controlled small businesses is notably low at 15%, thanks to the small business deduction, with additional tax benefits such as the ability to carry forward losses and defer personal income tax by retaining earnings at the company level.

Limited Liability

• Incorporating a business in Canada offers limited liability protection, separating personal assets from business debts and responsibilities. Shareholders are not personally liable for the corporation’s debts, limiting financial risk to their initial investment.

Professional Credibility

• Operating as a corporation in Canada enhances professional credibility, signaling commitment to long-term success and demonstrating a strong business foundation to stakeholders like investors, lenders, suppliers, and customers.
  
• This credibility can be advantageous when seeking partnerships, attracting investors, or expanding business relationships both locally and internationally.

Global Market Access

• Canada’s strategic location and trade relationships provide businesses with access to global markets, including the U.S., Mexico, and countries with which Canada has free trade agreements.
• This global market access opens up opportunities for businesses to tap into diverse markets, expand their reach, and leverage international trade relationships for growth and profitability.

Conclusion

Starting a company in Canada from India presents a promising opportunity for aspiring entrepreneurs willing to navigate the complexities of cross-border business. From understanding legal requirements to adapting to cultural nuances, thorough preparation is key. Researching market trends and seeking professional guidance can mitigate risks and enhance prospects for success. As we’ve explored, perseverance and resilience are vital traits on this journey. By leveraging innovation and fostering strategic partnerships, entrepreneurs can capitalize on Canada’s robust economy and multicultural landscape. To those considering this venture, remember: with dedication and determination, the dream of establishing a thriving company knows no bounds. Are you ready to take the next step in starting your company in Canada from India? Contact OnDemand International. Reach out to legal and business experts for personalized guidance and support. Your entrepreneurial journey awaits!