Canada: Team Member Nationality Requirements

For non-Canadian residents, options to incorporate a business in Canada are limited. You can form a partnership with a Canadian resident of Canada, or you can form a corporation. If you form a corporation, there is a quota of Canadian citizens on your company board of directors, different depending on province. Ordinarily, at least 25 percent of the directors of a corporation must be resident Canadians. According to a legal article, “Currently, five provinces and three territories (British Columbia, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Yukon, Northwest Territories and Nunavut) do not require a majority of a corporation’s directors be resident Canadians. Other provinces require 25% majority or at least 50% of the directors be residents of Canada. Under Alberta, Saskatchewan and the federal jurisdiction, 25% of a corporation’s directors must be resident Canadians except where the corporation has fewer than 4 directors, in which case at least one director must be a resident Canadian. “

Corporations incorporated outside of Canada can operate in Canada by either opening a branch office or incorporating a subsidiary in Canada.


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