Starting a Business in Canada for Foreigners: A Guide

Did you know that you don’t need a Canadian passport to build a Canadian business? 

You don’t need to be a citizen or permanent resident (PR) to register or own a Canadian business. In fact, starting a business in Canada as a foreigner is more common than you’d think.

This step-by-step guide walks you through everything you need to know about starting a Canadian business. Learn how to choose a business structure, register your company, sort your immigration status, and get your very own Canada Business Number (BN). This way, you can launch legally.

Let’s get started.

Key Takeaways

• Foreigners can own 100% of a Canadian corporation in most sectors.
• British Columbia is the most accessible province for non-residents who want to start a Canadian business. No Canadian director required.
• Canada’s Startup Visa Program is paused as of January 1, 2026, but there are other options you can take to start a business here in Canada.

Can a foreigner own 100% of a Canadian business?

Yes. Foreign nationals can own 100% of a Canadian corporation in most sectors. The only catch is that, under the Canada Business Corporations Act (CBCA), federally incorporated companies must have at least 25% of their directors be Canadian residents.

This does not cover British Columbia (BC), though. The BC Business Corporations Act does not require directors to reside in BC or that the majority be residents in Canada. This makes BC the top choice for non-resident founders. Read our full guide on how to start a business in BC to get started.

Ontario and Alberta also have no Canadian resident director requirements at the provincial level.

If you have no Canadian contacts, you can always appoint a nominee director, a Canadian resident who holds the director title to meet legal requirements.

Step-by-step guide on how to start a business as a foreigner in Canada

Here’s how the process works so you can register your business in Canada as a foreigner:

Step 1: Choose your business structure 

Your business structure affects your taxes, liability, and ability to scale. Choose between sole proprietorship, partnership, and corporation based on your growth goals.

• Sole proprietorship: Simple and cheap, but zero liability protection. As a remote business owner or e-commerce entrepreneur testing the market, this works. But as a non-resident, you may experience banking and tax complications without a Canadian presence.
• Partnership: Two or more people share ownership. Requires a shareholder agreement or operating agreement. Rules vary by province.
• Corporation: Separate legal entity. Best for tech founders, immigrant entrepreneurs, or anyone planning to scale, raise funding, or hire. Requires articles of incorporation, corporate bylaws, and a directors’ resolution. 

Not sure if incorporating is the right move? Read our guide on sole proprietorship vs. corporation to weigh your options before you decide.

Step 2: Decide between federal and provincial incorporation 

Federal incorporation through Corporations Canada lets you operate nationally under one business name. But you need to follow the 25% Canadian-resident-director rule. It also requires extra-provincial registration in every province where you operate.

Provincial incorporation is faster and cheaper, especially if you plan to operate in just one region. 

Key registries:

• Ontario Business Registry
• BC Registry Services
• Quebec Business Centre
• Alberta Corporate Registry

Before filing, run a Nuans name search to confirm your business name is available. Use BizPal and the Canada.ca business portal to find the required permits for your province and industry.

Ownr handles your entire incorporation process without you ever having to go through a government portal. It reduces the time spent navigating government portals and outlines the required business registration documents, so nothing slips through the cracks.

Step 3: Sort out your immigration and visa status

Once you have a plan, confirm your legal status with IRCC before registering a business or entering Canada to run it.

The Startup Visa Program is currently paused and not accepting new applications as of January 1, 2026. Check IRCC for reinstatement updates.

Your current options as of this writing:

• Entrepreneur Work Permit (C11): Enter Canada temporarily to launch or buy a business and manage its operations
• Intra-Company Transfer: Best for relocating an existing foreign business to a Canadian branch or subsidiary
• Provincial Nominee Programs (PNPs): Province-specific entrepreneur immigration streams with their own eligibility rules

For more information, check out the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). They offer financing and advisory services to foreign investors and startup founders.

Step 4: Register your business and get your BN

Register with Corporations Canada (federal) or your provincial registry offices (provincial). You’ll receive your Canada Business Number (BN) from the CRA (Canada Revenue Agency) upon registration. This is your tax ID for all federal accounts.

There is a difference between a business name (what you trade under) and a trade name (different from your legal corporate name). To protect your brand, consider registering your trademark with CIPO (Canadian Intellectual Property Office) to secure your intellectual property (IP).

If your province requires it, appoint a registered agent, a Canadian resident authorized to receive legal notices on your behalf. If your business handles large financial transactions, register with FINTRAC to comply with anti-money laundering (AML) rules.

Planning to operate in Ontario? Here’s a full breakdown of how to start a business in Ontario and what the registration process looks like.

Step 5: Open a business bank account and handle taxes 

You need a business bank account before you can collect payments or pay Canadian suppliers. Most Canadian banks require your BN, articles of incorporation, and government-issued ID. 

Ownr helps foreigners open a Canadian business bank account through its partnership with RBC. The platform links business setup to Canadian banking requirements so you can get your BN, incorporation documents, and business bank account sorted in one place, without bouncing between portals.

Register for GST/HST registration once your taxable revenue hits $30,000 CAD in any 12-month period. You have 29 days from the day you cross that threshold to register. In Quebec and BC, you may also need to collect PST/QST.

Step 6: Stay compliant after you register

File your annual return with Corporations Canada or your provincial registry to keep your corporation active. Missing two consecutive years can lead to dissolution.

Keep your corporate bylaws, directors’ resolutions, and shareholder agreement up to date in your minute book. In Quebec, comply with bilingual (EN/FR) requirements for contracts and public signage. Revisit FINTRAC obligations if your transaction volumes change significantly.

Common Mistakes Foreigners Make When Starting a Canadian Business

Here are practical heads-up for foreign founders, so you avoid making mistakes when starting a Canadian business:

• Choosing the wrong business structure: Take time to identify the right business structure for foreign owners before you file anything.
• Ignoring the Canadian resident director requirement: Know whether you need to hire Canadian residents as directors before you register.
• Registering in the wrong province: Each province has different rules, costs, and director requirements.
• Skipping the minute book: It’s a legal requirement for every corporation in Canada, and auditors and Canadian regulatory bodies will ask for it.
• Assuming immigration status handles itself: Always map out visa and work permit requirements with a qualified immigration consultant before you launch.

Start your Canadian business with Ownr

Setting up a business in a foreign country involves many moving parts. Ownr guides foreigners through Canada’s business setup process. It simplifies complex immigration and business requirements by handling the paperwork so you don’t have to juggle multiple government portals.

Over 24,000+ entrepreneurs have already used Ownr to get their businesses off the ground. If you’re a foreign investor, a startup founder, or an immigrant entrepreneur, Ownr gives you a clear, simple, and legal path forward.

Incorporate your Canadian business with Ownr today.

Frequently Asked Questions

How much does it cost to register a business in Canada?

Sole proprietorship registration runs $60–$80 CAD, depending on the province. Federal incorporation costs around $200 CAD. Provincial incorporation typically runs $300–$450. When you factor in legal and accounting setup, budget $1,500–$3,000 CAD total. 

Can I start a business in Canada without living there? 

Yes. The Investment Canada Act allows foreign ownership. You’ll likely need a Canadian resident director (except in BC, Ontario, and Alberta) and an Agent for Service. Platforms like Ownr allow fully remote registration.

Can an international student start a business in Canada? 

Yes, but IRCC classifies it as “off-campus work.” During semesters, you’re limited to 24 hours per week. You can work full-time during scheduled breaks. A sole proprietorship is the simplest structure to start with. After graduation, the Post-Graduation Work Permit (PGWP) removes these restrictions.

Can I start a business in Canada without permanent residency (PR)? 

Yes. You don’t need a PR to register or own a business in Canada. However, you need proper work permit authorization. Ownership and work authorization are separate. This distinction trips up many foreign entrepreneurs.

What is the best business in Canada for foreigners?

There’s no single best answer. High-demand, accessible sectors include tech, e-commerce, and consulting. The right fit depends on your skills, capital, and the Canadian province where you plan to operate.

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