Located in North America, Canada is the largest country in the western hemisphere and one of the largest in the world. With a stable government and a skilled workforce, company formation in Canada has increased in popularity, specifically in the province of British Columbia. The province of British Columbia highlights a thriving free-market economy and commercially minded company laws and is home to not only small owner-managed enterprises but is also home to multinational corporations.
Company formation in British Columbia is a relatively simple process for non-Canadian parties. Firstly, Canadian companies are only required to have 1 shareholder and 1 director for company formation purposes, with the position of company secretary optional (unless required by a company’s articles). Directors of Canadian companies must meet a residency requirement (25% of a company’s directors are required to be Canadian residents). However, provinces such as British Columbia are not subject to these requirements.
Unlike other Canadian provinces, company formation in British Columbia does not require a local office lease. Virtual offices are sufficient for the purposes of company formation.
Lastly, there are no minimum capital requirements. However, parties contemplating company formation in Canada should note that Canada possesses thin-capitalization rules that may deny deductions for interest payments to specified non-residents.
Yes. Although Canadian companies are required to have at least 1 shareholder and 1 director, a single individual can hold one or more positions. However, non-profit corporations usually require a minimum of three directors.
Names of Canadian companies must be in a 3-element format which contains a distinctive unique name, a descriptive of the activity of the business (services, products etc) and the legal form of the business entity.
Yes. The provision of a local registered address by a third-party service provider is allowed for the purposes of company formation in British Columbia. FastLane can provide both virtual office addresses in addition to physical office addresses upon request.
A bank account is not necessary when forming a Canadian company and can be opened after successful formation. FastLane can assist our clients open bank accounts in Canada.