
Imagine expanding your business into a thriving North American market, with its natural resources, diverse economy, and world-class infrastructure—all while enjoying the comforts of being an entrepreneur from the UK. Sounds like a dream, right? Well, it’s a dream that’s within reach. Canada, with its strong ties to the UK and commitment to supporting international businesses, offers an exciting pathway for British entrepreneurs looking to broaden their horizons.
Whether you’re looking to expand an existing company or incorporate a new business, this guide will cover everything for you- from the steps to start a business in Canada from the UK to the legal requirements for your business.
Why Choose Canada as a British Entrepreneur?
Before diving into the process, let’s understand why Canada is an attractive destination for British entrepreneurs:
1. Business-Friendly Environment
- Canada ranks 23rd in the World Bank’s Ease of Doing Business index (2022).
- The country offers strong intellectual property rights, low corporate taxes, and transparent regulations.
- It has a stable and strong economy, projected to grow at 2.3% annually over the next few years.
2. Access to North American and Global Markets
- As a member of CPTPP, Canada provides access to 500+ million consumers globally.
- The USMCA Agreement (formerly NAFTA) allows businesses in Canada to trade duty-free with the USA and Mexico.
3. Favorable Immigration Policies for Entrepreneurs
- The Start-Up Visa Program enables entrepreneurs to move to Canada while setting up their businesses.
- The Intra-Company Transfer Program allows UK business owners to relocate key personnel to manage their Canadian operations.
Business Structures to Start a Business in Canada as a British Entrepreneur
Foreign entrepreneurs can choose from several business structures, but the most common are:
1. Corporation (Recommended for Foreign Investors)
- A corporation in Canada offers limited liability to business owners.
- Profits are taxed separately from personal income.
- Eligible for corporate tax incentives.
- Can be federally or provincially registered.
2. Partnership
- Involves two or more individuals sharing profits and responsibilities.
- Can be general or limited partners.
- UK entrepreneurs can set up a limited partnership in Canada.
3. Sole Proprietorship
- Easy to set up but offers no liability protection.
- Profits are taxed as personal income.
- Not recommended for foreign entrepreneurs due to tax risks.
Best Choice: If you plan to grow your UK company, registering a Canadian corporation is the best option. It allows you to operate nationwide, raise capital, and access government incentives.
How to Start a Business in Canada from the UK?
The following steps to start a company in Canada from the United Kingdom includes:
Step 1: Decide on a Business Structure
Some of the best business forms available in Canada are corporation, partnership, and sole proprietorship. Select the structure that best meets your company’s demands as each has pros and cons of its own.
Step 2: Choose Federal vs. Provincial Incorporation
- Federal Incorporation (Corporations Canada): Allows your business to operate in every province and territory.
- Provincial Incorporation: Allows operation within a specific province (e.g., Ontario, British Columbia).
For UK entrepreneurs looking for nationwide reach, federal incorporation is recommended.
Step 3: Company Name Registration
The company name has to be unique and approved. In order to check the availability of the business name, you must conduct a NUANS (Newly Upgraded Automated Name Search) in Canada.
Step 4: Get a Business Number (BN)
The Canada Revenue Agency (CRA) assigns a Business Number (BN) for taxation purposes. The business number in Canada is required for corporate tax, payroll, and import/export registration.
Step 5: Open a Canadian Business Bank Account
Opening a corporate bank account in Canada is required for financial transactions, tax filings, and credibility. Most banks require at least one Canadian director or a physical presence in Canada. Some banks offer remote account openings for foreign business owners.
Step 6: Register for Taxes
You must also process with GST/HST Registration in Canada if annual revenue exceeds $30,000 CAD.
Legal Requirements for Opening a Business in Canada
Some of the required legal requirements for opening a business in Canada from the UK are:
- Articles of Incorporation
- Registered Office Address
- Certificate of Incorporation
- Certificate of Status
- Business number in Canada
- Notice of assessment for income tax
- Two pieces of ID
Conclusion
Setting up a business in Canada from the UK opens a gateway to a market filled with innovation, diversity, and growth potential. As you venture into this promising landscape, remember that each step you take brings you closer to a rewarding, international success story. Canada’s supportive business environment, coupled with the resources available to UK entrepreneurs, makes this journey as straightforward as it is exciting.
Canada offers incredible opportunities for UK entrepreneurs, and with OnDemand International’s experts by your side, you don’t have to navigate this journey alone. We’re here to simplify each step—from meeting legal requirements to setting up operations—so you can focus on making your mark in Canada’s thriving market.
Are you planning to start a business in Canada? Contact us for expert assistance on business registration, compliance, and investment opportunities!
FAQ’s
To register a business in Canada, it takes 5-7 days.
Yes, UK citizens incorporate their company in Canada. Canadian Laws allow non-Canadian nationalist to incorporate and operate their business in Canada.
Yes, you require a registered office address to establish a business in Canada. You will receive all your post, mails and important documents on that address.