Set Up a Subsidiary in Canada

Foreign companies seeking to expand their business activities in Canada can set up subsidiaries or branch offices. The main difference between these types of structures is the degree of independence from the parent-company. Foreign business owners can rely on us for assistance in registering a subsidiary in Canada.

What types of subsidiaries can investors register in Canada?

• non-profit;
• subsidiaries with share capital;
• statutory subsidiaries which apply in the case of foreign banks.

What are the business forms available for the registration of a Canadian subsidiary in 2026?

Compared to other jurisdictions, Canada has more types of legal entities that can be used for the creation of a subsidiary. Among these, the corporation, which is the equivalent of the limited liability company, is often used and there are also other business forms, among which the extra-provincial corporation, the partnership, and even the trust.

What are the requirements to create a Canadian subsidiary company?

When setting up a subsidiary company in Canada, a foreign entity must take into account the following requirements:

1. the company must be registered under the federal or regional legislation, depending on where its seat will be and the market it will address;
2. the foreign company must choose the type of subsidiary it wants to create;
3. the parent company must take into consideration the residency of the subsidiary directors;
4. subsidiaries are tax residents of Canada, therefore they will pay their taxes in this country.

You can also read about the creation of a subsidiary in Canada in the scheme below:

What are the main registration steps if I want to set up a corporation in Canada?

The next steps are required to complete the subsidiary registration procedure in Canada:

• carry out a name search report in order to make sure the trade name is unique;
• prepare the documents related to company registration, which include the articles of association and the bylaws;
• filing the documents with the provincial or federal Trade Register;
• obtaining a business number (BN) from the Canada Revenue Agency (issued automatically on federal and most provincial incorporations);
• obtain the necessary licenses and permits.

What are the accounting requirements of the subsidiary in Canada in 2026?

The following accounting requisites must be considered by a foreign company opening subsidiaries in Canada:

• it will be subject to the income tax applied at the federal and provincial level;
• the taxation will be applied to the income generated at a global level;
• the subsidiary will be subject to the accounting and reporting requisites applied in Canada;
• itcan benefit from tax credits against the taxes paid on the income generated in other countries than Canada;
• it will benefit from the provisions of the Canadian double taxation agreements;
• certain tax benefits are granted for the repatriation of capital gains.

Is it difficult to register a subsidiary in Canada?

The company registration procedure of a Canadian subsidiary will be completed just as in the case of a corporation, therefore it is not complicated.

Which one is the best: federal or territorial incorporation of a subsidiary?

Both registration options are advantageous, however, it should be noted that certain provinces do not impose any residency requirements for company directors.  Among these are: Quebec, British Columbia, Nova Scotia, Ontario and New Brunswick (federal CBCA corporations still need at least 25% resident Canadian directors).

Are nominee directors allowed for Canadian subsidiaries?

Yes, nominee directors can be employed when opening a subsidiary in Canada, but the individuals with significant control must still be recorded and, for federal corporations, reported to Corporations Canada (public registry since 22 January 2024).

The video below shows the main steps for opening a subsidiary in Canada:

What is the duration of the registration process?

The process of company formation in Canada starts by addressing our team, who will gather the necessary paperwork from our client. Once we have received the documentation, we can file in around 24 to 48 hours. After this, the following timelines can take place:

1. the registration can be completed by the Canadian registrars in around 8 to 9 business days;
2. provided that you need to complete the process of company registration in Canada as soon as possible, there is also the possibility of opting for expedite services by paying an additional governmental fee, in which case the application file can be reviewed in only 1-2 business days.

What are the governmental fees charged for the registration?

The Canadian registrar authorities will charge governmental fees ranging from CAD 200 to CAD 600.

What are the fees charged by your team for corporate services?

Our consultants are specialized in offering professional services for company registration in Canada, which also include the registration of a subsidiary. For our services, we charge different fees, which vary depending on the services selected by our clients. In the list below, you can observe some of the fees we apply in 2026:

1. CAD 1,250 (standard incorporation services);
2. CAD 2,250 – CAD 4,000 (standard incorporation services plus annual tax services);
3. CAD 2,250 (corporate maintenance package, which includes the registered address, corporate tax returns and tax consulting services);
4. CAD 450/ year (registered address services).

What does the standard incorporation package include?

In order to set up a subsidiary in Canada (by completing the basic registration steps) it is sufficient to select our standard incorporation services package. This package includes the following:

1. consultancy services prior to starting the registration procedure;
2. reservation of a trade name;
3. drafting and signing the articles of incorporation;
4. obtaining the certificate of incorporation;
5. obtaining a business number;
6. obtaining a VAT number.

Do I need to have a registered address in Canada?

Yes, if you will operate through asubsidiaryof a foreign company you must, among many other basic steps, secure a registered address (by opting for the services of a virtual office,renting an office space, purchasing a commercial space).

What is the Canadian legislation on subsidiaries in Canada?

The main law that provides for the establishment of a company in Canada is the Canada Business Corporations Act (federal), alongside the provincial business corporations acts, however, it contains specific regulations for those who want to expand their businesses here. There are also provincial and territorial regulations that determine the conditions under which such expansions are possible.

Please feel free to contact us if you need information about the registration of Canadian subsidiaries.