This country currently has a directory entry or basic profile only; a full handbook is planned.
01Overview
- Region
- North America
- Capital
- Ottawa
- Currency
- CAD
- Languages
- English, French
- ISO code
- CA / CAN
Jurisdictions
- Canada — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Generally unrestricted
- Applies to
- Notification or review under the Investment Canada Act; state-owned investment in critical minerals faces strict scrutiny
- Jurisdiction
- Canada
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Corporation (federal or provincial)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Corporations Canada (federal) or provincial registries
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Generally unrestricted
- Applies to
- Notification or review under the Investment Canada Act; state-owned investment in critical minerals faces strict scrutiny
- Jurisdiction
- Canada
- Source
- MOFCOM
Local director / representative
Whether a locally resident director, manager or representative is required.
At least 25% of directors of a federal (CBCA) corporation must be resident Canadians
- Applies to
- Provincial corporate laws differ; some provinces have no resident director rule
- Jurisdiction
- Canada
- Source
- Corporations Canada
Local registered address
Whether a local registered address or premises is required at incorporation.
A registered office in the province named in the articles is required
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- Corporations Canada
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Federal corporations must keep an ISC register and file it with Corporations Canada
- Applies to
- Provincial laws differ
- Jurisdiction
- Canada
- Source
- Corporations Canada
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
File incorporation with Corporations Canada (or a province) → obtain a Business Number → provincial registration and tax accounts
- Applies to
- Some foreign investments need notification or review under the Investment Canada Act
- Jurisdiction
- Canada
- Source
- Corporations Canada
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
15% (federal general rate)
- Applies to
- Provincial income tax applies on top; combined roughly 23%–31%
- Jurisdiction
- Canada
- Source
- State Taxation Administration
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
Federal GST 5%
- Applies to
- Provinces add PST or a harmonised HST
- Jurisdiction
- Canada
- Source
- State Taxation Administration
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
25%
- Applies to
- Reduced to 10% or 15% under the China–Canada treaty
- Jurisdiction
- Canada
- Source
- State Taxation Administration
Tax authority
Authority responsible for corporate tax registration and filing.
Canada Revenue Agency (CRA)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- State Taxation Administration Canada Revenue Agency (CRA)
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Canada
- Source
- State Taxation Administration (China) State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No exchange controls
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Bank of Canada; Office of the Superintendent of Financial Institutions (OSFI)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Work permit (usually with a Labour Market Impact Assessment), issued by IRCC
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Immigration, Refugees and Citizenship Canada (IRCC)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Canada Pension Plan (QPP in Quebec) and Employment Insurance (EI)
- Applies to
- Withheld through payroll by the CRA; Chinese posted workers may claim CPP exemption under the China–Canada agreement
- Jurisdiction
- Canada
- Source
- Canada Revenue Agency (CRA)
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
Canada Border Services Agency (CBSA)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
CUSMA, Canada–EU CETA and others
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Innovation, Science and Economic Development Canada (review); Invest in Canada (promotion)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Foreign Trade Zone (FTZ) programmes
- Applies to
- Duty and tax relief can be used anywhere in the country
- Jurisdiction
- Canada
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Canadian Intellectual Property Office (CIPO)
- Applies to
- Ordinary companies
- Jurisdiction
- Canada
- Source
- MOFCOM
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Personal Information Protection and Electronic Documents Act (PIPEDA)
- Applies to
- Quebec, British Columbia and Alberta have their own private-sector privacy laws
- Jurisdiction
- Canada
- Source
- Office of the Privacy Commissioner of Canada
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Canada
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Americas, monitored by our sister site Global Risk Monitor.
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in Canada
- 1File incorporation with Corporations Canada (or a province)
- 2obtain a Business Number
- 3provincial registration and tax accounts
Some foreign investments need notification or review under the Investment Canada Act
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻加拿大大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.