Business registration in Canada

[Ethan William]

Hi,

I’m thinking to start a business in Canada. We have few business partners from outside Canada. And I will have to go abroad for business related needs. So, I would like to ask a question about that. In case, if I don’t live in Canada for two out of the five years. Is it a big problem? Will it be difficult to renew the PR? Has anyone faced the same situation? Kindly, let me know your suggestions and experiences.

Also, I have been searching details for my business to register. Came across few blogs about that. And I could make out the advantages of incorporating a business. While reading about the Canada federal incorporation, I came across the advantages it has. The top three reasons for an individual to incorporate in Canada they listed was:

1.limited liability protection

2.highest business name protection available in Canada

3.there are tax advantages

Do, you agree with these points? I would like to know about your comment on this. Waiting for your reply.

Thanks in advance

 

[scylla]

Yes - it will be a big problem.

You need to live in Canada for 2 out of 5 rolling years to keep your status. Establishing a business in Canada and then traveling abroad for business related needs won't change this fact. You can only count time spent outside of Canada towards the PR residency obligation if you are first hired by an existing company for a full time role in Canada and are then later transferred to a full time role outside of Canada. Setting up your own business doesn't meet these requirements and CIC will require you to live in Canada for 2 out of every 5 years to keep PR. CIC regards the "setting up your own business and then spending time abroad" as a loop hole people try to use to get around having to live in Canada and doesn't allow it. They call it "establishing a business in Canada primarily for the reasons of maintaining residency". (Long story short, they caught onto this trick years ago and it no longer works.)

You need to live in Canada for 2 out of every 5 years to keep PR.

 

[torontosm]

Hi,

I’m thinking to start a business in Canada. We have few business partners from outside Canada. And I will have to go abroad for business related needs. So, I would like to ask a question about that. In case, if I don’t live in Canada for two out of the five years. Is it a big problem? Will it be difficult to renew the PR? Has anyone faced the same situation? Kindly, let me know your suggestions and experiences.

Also, I have been searching details for my business to register. Came across few blogs about that. And I could make out the advantages of incorporating a business. While reading about the Canada federal incorporation, I came across the advantages it has. The top three reasons for an individual to incorporate in Canada they listed was:

1.limited liability protection

2.highest business name protection available in Canada

3.there are tax advantages

Do, you agree with these points? I would like to know about your comment on this. Waiting for your reply.

Thanks in advance

If you are planning on having commercial activities in Canada, you should absolutely incorporate. Limiting your legal liability is of paramount importance, and there are clear tax advantages to having a company (and being able to write off expenses) vs. taking the income as personal earnings. Incorporation seems like a bit of a hassle, but is very worth it in the long run.

 

[NetMecca]

Not sure about the immigration issues. Federal incorporation over provincial has some benefits regarding name protection as it is Canada wide (excluding Quebec). But to operate in any of the provinces you still have to register as an extra-provincial corporation. This increases the cost somewhat.

For federal you also generally need actual office locations in more than one province. Do you have that?

For small business provincial is usually more than fine. Cost is about the same, so no real benefit there.

Limited liability applies federal or provincial.

 

[Trusty]

Hi,

I’m thinking to start a business in Canada. We have few business partners from outside Canada. And I will have to go abroad for business related needs. So, I would like to ask a question about that. In case, if I don’t live in Canada for two out of the five years. Is it a big problem? Will it be difficult to renew the PR? Has anyone faced the same situation? Kindly, let me know your suggestions and experiences.

Also, I have been searching details for my business to register. Came across few blogs about that. And I could make out the advantages of incorporating a business. While reading about the Canada federal incorporation, I came across the advantages it has. The top three reasons for an individual to incorporate in Canada they listed was:

1.limited liability protection

2.highest business name protection available in Canada

3.there are tax advantages

Do, you agree with these points? I would like to know about your comment on this. Waiting for your reply.

Thanks in advance

Double check with a lawyer but if you are traveling or living abroad on a job for a company based in Canada and paying Canadian taxes, there is a way for you to stay outside Canada and still fulfill PR obligations. The company needs to meet certain criteria, lawyer can help you figure out best method for PR & taxes.