A Canadian company lets you sign with Canadian customers, hire there and bank there. For a founder who lives outside Canada, the first decision is not the name or the shares but where in Canada to incorporate, because the federal rules and some provinces require Canadian-resident directors and others don’t. This guide explains why we incorporate in British Columbia, how to do it from abroad, and what the company pays and files, from official sources checked in October 2026.
Why British Columbia and not a federal company
A company incorporated federally under the Canada Business Corporations Act must have resident Canadians as at least 25% of its directors, and at least one if it has fewer than four. A founder abroad would need a Canadian to sit on the board.
British Columbia has no such rule. Its Business Corporations Act requires at least one director, who must be an individual and 18 or over, and says nothing about where that director lives. One director, living anywhere, is enough.
A BC company can do business across Canada. If it carries on business in another province, it generally has to register there too; the rules and fees depend on the province.
Sources: CBCA s.105 · BC Business Corporations Act (directors) · BC Registries: no residency requirement
What a BC company needs
- At least one director: an individual, 18 or over, living anywhere.
- A registered office and a records office in British Columbia. The records office keeps the company’s register of directors, its securities register, minutes, resolutions and other records. For our clients both addresses are provided by our BC partner.
- Four documents: an incorporation agreement, an incorporation application, a notice of articles, and articles setting the company’s rules.
- A name, approved through a Name Request, or none at all: a numbered company is called “[number] B.C. Ltd.” and needs no name approval.
- A transparency register of individuals with significant control, usually anyone holding 25% or more of the shares or votes. It is kept by the company and is not public; BC has announced a public registry that isn’t yet in force.
Sources: BC Business Corporations Act (ss.10, 12, 34, 42) · BC: transparency register · BC: significant individuals
Step by step, from abroad
- Sign in to the BC Registry. BC recommends its BC Services Card app, which most people outside BC don’t have. The alternative is a BCeID: someone who isn’t a BC resident sets one up with a notarised identity affidavit and two-factor authentication, which takes a few business days to review. Many founders let their agent file instead.
- Name Request ($30), currently taking about six business days, with a paid priority option. Or skip it with a numbered company.
- File the incorporation application ($350) with the notice of articles, once the incorporation agreement and articles are signed.
- Business Number. The CRA business number is issued automatically as part of incorporation.
- Set up the records office and the transparency register, then open the bank account; see what banks ask a non-resident founder.
Sources: BC Registry sign-in · BC: incorporated companies and fees · BC: processing times · BC: Business Number
Tax: a Canadian company, owned from abroad
- It is resident in Canada. A corporation incorporated in Canada is deemed resident in Canada for tax, wherever its owner lives. Your own country may have a view too, so ask an adviser in both.
- General rates, not the small-business rate. Federal tax is 15% after the general reduction, and BC adds 12%. Canada’s lower small-business rate is only for Canadian-controlled private corporations, and a company controlled by non-residents isn’t one.
- Dividends to you are taxed at source. Dividends paid to a non-resident shareholder carry 25% Canadian withholding tax, often reduced by a tax treaty with your country. The company withholds it, pays it to the CRA by the 15th of the next month, and issues an NR4 slip.
- GST/HST registration is required once taxable sales pass $30,000 over four consecutive calendar quarters; for a non-resident business the test counts worldwide sales.
Sources: Income Tax Act s.250(4) · CRA: corporation tax rates · CRA: type of corporation · CRA: Part XIII and NR4 (T4061) · CRA: treaty rates (IC76-12) · CRA: GST/HST for non-residents
Every year
| What | When | |
|---|---|---|
| BC Registries | Annual report ($43.39) | Within 2 months after each anniversary of incorporation |
| CRA | Corporate tax payment (balance due) | 2 months after the year end for a company that isn’t a CCPC |
| CRA | T2 return, even with no tax to pay, with Schedule 50 (10%+ shareholders) and Schedule 19 (non-resident shareholders) | 6 months after the year end |
| CRA | NR4 slips for dividends or other Part XIII amounts paid to non-residents | Withholding paid by the 15th of the next month; slips yearly |
If the company’s dealings with related non-residents (you, or another company you own) total more than $1 million in a year, it also files Form T106. The transparency register has to be kept up to date during the year.
Sources: BC Business Corporations Act s.51 · CRA: when to file the T2 · CRA: T2 guide (Schedules 19, 50, T106)
An example
Invented for illustration. Priya lives in Singapore and sells training software to hospitals in British Columbia and Alberta, which prefer to contract with a Canadian company. She forms a numbered BC company with herself as sole director and shareholder, using an agent so she doesn’t need a BC Registry login. Her adviser flags three things before the first invoice: GST/HST registration once Canadian sales pass the threshold, whether the company should also register in Alberta because of her Alberta contracts, and how much Canadian withholding tax will apply to dividends under the Canada–Singapore treaty.
When Canada isn’t the right answer
- Your customers aren’t in Canada: a Canadian company pays the general corporate rates and withholds tax on your dividends; compare the options in best country to incorporate.
- You sell mostly to the US: see the US LLC for non-residents.
Form your BC company with us
We file the incorporation, arrange the BC registered and records office through our BC partner, set up the transparency register, help with the bank account, and keep the yearly dates in front of you.
Canada company formationFrequently asked questions
Can a non-resident own a company in Canada?
Yes. A British Columbia company has no residency requirement for directors, so you can own and run it from abroad. A federal company is different: at least 25% of its directors must be resident Canadians.
Why incorporate in British Columbia instead of federally?
Because of the director rule. A federal company needs resident Canadian directors, which a founder abroad usually doesn’t have. A BC company needs one director living anywhere, and can still do business across Canada, registering in other provinces where it carries on business.
What tax does a non-resident-owned Canadian company pay?
The general rates: 15% federal plus 12% in British Columbia. The lower small-business rate is only for Canadian-controlled private corporations. Dividends paid to you abroad carry 25% Canadian withholding tax, often reduced by a tax treaty.
How do I sign in to the BC Registry from outside Canada?
With a BCeID. Someone who isn’t a BC resident sets it up with a notarised identity affidavit and two-factor authentication, which takes a few business days to review. Or an agent can file for you.
What does a BC company file every year?
An annual report to BC Registries within two months of each anniversary ($43.39), a T2 tax return within six months of the year end even if no tax is due, and, if it pays dividends to non-residents, Part XIII withholding and NR4 slips.
General information for internationally mobile founders, not tax, legal or immigration advice for your situation. Rules and fees change; confirm your position with a qualified adviser in each country involved before acting.