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Start a Business in Quebec Sucessfully: Process & Benefits

Looking to start a business in Quebec? This guide covers the process, benefits, business opportunities and taxation and compliance requirements for your business in Quebec.

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start a business in quebec

Thinking of expanding your business footprint into North America? Quebec, Canada’s largest province by area and second most populous, offers a thriving, multilingual, and business-friendly environment ideal for foreign investors and entrepreneurs. With its strategic location, generous government incentives, highly skilled bilingual workforce, and direct access to North American and European markets, Quebec is one of the most attractive destinations for global business expansion.

In this article, we’ll guide you through the benefits, business structures, registration steps, taxation, funding opportunities, and more—ensuring you’re well-prepared to start your entrepreneurial journey in Quebec.

Why Start a Business in Quebec?

Quebec is a dynamic economic hub with strong ties to international trade, innovation, and entrepreneurship. As a foreign investor, here’s why Quebec stands out:

  • Strategic Location: Close proximity to major U.S. cities like New York, Boston, and Chicago.
  • Bilingual Advantage: Access to a workforce fluent in both English and French.
  • Innovation Ecosystem: Strong in AI, aerospace, life sciences, clean tech, and ICT.
  • Government Support: Investment-friendly policies, tax credits, and grant programs.
  • Quality of Life: Ranked as one of the safest and most livable places in North America.

Best Business Opportunities in Quebec (2025 Edition)

If you’re a foreign investor, consider entering industries that are aligned with Quebec’s economic priorities and growing sectors:

  • Information Technology (IT) & AI
  • Renewable Energy & Clean Tech
  • Aerospace and Aviation
  • Healthcare and Life Sciences
  • Import-Export & Logistics
  • Real Estate & Property Development
  • Tourism & Hospitality

Business Structures in Quebec: Which One Should You Choose?

Foreign entrepreneurs must select the appropriate legal structure based on their goals, liability, taxation, and control. Here are the main options:

1. Sole Proprietorship

  • Easiest and cheapest to set up.
  • Suitable for freelancers or one-person operations.
  • No legal separation between personal and business assets.

2. Partnership

  • Formed between two or more people.
  • Can be general or limited liability.
  • Requires a written agreement and registration.

3. Corporation (Incorporated Company)

This is the most recommended structure for foreign entrepreneurs:

Key Benefits:

  • Separate legal entity (limits your personal liability)
  • Easier to raise capital

Federal vs Provincial Incorporation:

  • Federal: Allows you to operate Canada-wide and use the same business name in multiple provinces.
  • Provincial (Quebec): Operates only within Quebec. Cheaper and simpler if you plan to do business solely in Quebec.

Step-by-Step Process to Start a Business in Quebec

Starting a business in Quebec as a foreigner involves several key steps such as the following given below:

1. Choose a Business Name

The first step to incorporate a business in Quebec includes choosing the business name which must be unique, descriptive, and comply with the naming guidelines. Our experts from OnDemand can assist you through this phase.

2. Get a Quebec Enterprise Number (NEQ)

This is a unique identifier for your business and is required for taxation, permits, and banking.

3. Incorporate Your Company

To incorporate your company in Quebec, you’ll need to file your application online—either through the Registraire des entreprises (REQ) for a provincial incorporation or Corporations Canada for a federal one. 

During this process, you must submit your Articles of Incorporation, provide details of directors and shareholders, and designate a registered office address.

4. Open a Business Bank Account

In order to open a bank account for your firm in Quebec, you’ll need the following documentation: certificate of incorporation, NEQ, Passport and residency documents and proof of business address.

5. Register for Taxes

Apply for GST/QST numbers through Revenu Québec. If hiring employees, register with Revenu Québec and Revenue Canada for payroll.

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Registering for NEQ (Québec Enterprise Number)

NEQ (NumĂ©ro d’entreprise du QuĂ©bec) is the official business registration number issued by REQ. It’s similar to a Business Number (BN) used federally.

Why is the NEQ is Important?

  • Mandatory for all businesses operating in Quebec.
  • Required for contracts, tax filings, banking, and government communication.

How to Get It?

  • File online via the REQ platform.
  • You’ll receive the NEQ instantly upon successful incorporation (for provincial corporations) or upon registering a federal corporation in Quebec.

Learn more: NEQ Number in Quebec – Full Guide

Taxation and Compliance Requirements

Foreign investors operating a business in Quebec must comply with both federal and provincial tax rules. Here’s what you need to know:

Corporate Income Tax

  • Federal tax: 15%
  • Quebec provincial tax: ~11.5%
  • Combined rate for small businesses (CCPC): ~12.2% on the first CAD 500,000 (after deductions)

Sales Tax (GST/QST)

  • GST (Federal): 5%
  • QST (Quebec): 9.975%

You must register for both if your revenue exceeds CAD 30,000 annually.

Filing Requirements:

  • Corporate tax returns (T2 and CO-17) must be filed annually.
  • Keep financial records for at least six years.

Benefits of Starting a Business in Quebec

Starting a business in Quebec unlocks several tangible advantages for foreign entrepreneurs:

1. Favorable Corporate Tax Rates

Quebec offers competitive provincial tax rates, especially for small businesses. The combined federal and provincial tax rate for a Canadian-controlled private corporation (CCPC) is approximately 12.2% on the first CAD 500,000 of taxable income.

2. Access to a Skilled, Bilingual Workforce

With globally recognized universities such as McGill and Université de Montréal, Quebec produces top talent in science, engineering, business, and tech. Language versatility offers a gateway to both Francophone and Anglophone markets.

3. Low Cost of Living and Business Operations

Compared to Ontario or British Columbia, Quebec offers lower rental costs, affordable utilities, and cost-effective staffing options, especially in cities like Montreal, Laval, and Sherbrooke.

4. Diverse Market and International Reach

Montreal, Quebec’s economic capital, is ranked among the top startup ecosystems globally. It has direct connections to over 150 countries, making it ideal for import-export businesses and global expansions.

Conclusion

Starting a business in Quebec is more than just a strategic move—it’s an opportunity to tap into a thriving economy backed by world-class infrastructure, supportive government policies, and an innovation-driven culture. Whether you’re entering the North American market, scaling your startup, or diversifying into new industries, Quebec offers unmatched potential for success.

At OnDemand International, we help foreign entrepreneurs set up and scale their businesses in Quebec with ease. From NEQ registration and incorporation to opening a bank account and securing funding, our experts guide you every step of the way. Reach out to our experts today. 

FAQ’s

Yes, foreign nationals can incorporate and own 100% of a business in Quebec without being a resident or Canadian citizen.

The NEQ is a unique identifier for businesses in Quebec, required for legal, tax, and administrative purposes.

Absolutely. Montreal is a global AI and tech hub with funding, talent, and tax incentives for IT startups.

It usually takes 1–5 business days if all documents are ready and filed correctly.

Picture of David Campbell

David Campbell

David Campbell is a Canadian business expert in company registration, legal compliance, and navigating the complexities of Canadian regulations with over 12 years of experience in helping entrepreneurs establish businesses across Canada. With a Business Administration degree from the University of Toronto, David has helped over 250 companies navigate the complex process of starting and growing their businesses in Canada.

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