Establish a Branch in Canada

Updated on Monday 27th January 2020

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Foreign companies expanding their operations in other countries have several choices. Among these, the subsidiary companies and the branch offices are often employed. These structures are also available in Canada and the parent company will usually choose the business form depending on various factors, such as taxation and the independence of company registered abroad. According to the Canadian legislation, a branch office is an extension of the foreign company, while the subsidiary is an independent company.

Foreign companies setting up branches in Canada are subject to several requirements which can be explained by our local company formation advisors.

How to register a branch office in Canada

A foreign company starting a business in Canada and choosing the branch office to do that must register this structure with the local authorities in the province it will operate. If the parent company wants to operate in several provinces, it needs to register the branch in each Canadian territory.

The documents to be filed with the authorities when creating a branch in Canada are:

  • information about the parent company along with its certificate of incorporation;
  • the incorporation documents of the branch office to be established in Canada;
  • a declaration with the names of the branch directors and secretary;
  • information about the local representatives of the parent company in the branch office.

The parent company must appoint local agents to carry out the Canadian branch registration process.

Our company registration consultants in Canada can handle this procedure.

We also invite you to see our scheme showing the steps for opening a branch in Canada:


Requirements for branch offices operating in Canada

All branch offices of foreign companies operating in Canada must make sure all the official documents issued by them show the following:
  1. information about the parent company, such its address in the foreign country;
  2. the name of the parent company must be present on all documents issued by the Canadian branch;
  3. the registration number assigned by the Canadian authorities to the branch office;
  4. the registered address of the branch office in the Canadian province;

Additionally, at the head office of the Canadian branch the representatives must also display the name of the parent company. Branches are also required to obtain VAT numbers in Canada.

We also invite you to watch our video on how to open a branch office in Canada:

Why open a branch in Canada?

The costs of opening a company in Canada are not very low, however the branch is a suitable option for those seeking to invest a lower amount of money into a project. Also, the Canadian branch must bear the same name with the parent company, therefore the company name search and approval with the Trade Register is a step which can be skipped in the branch incorporation procedure.

From a taxation point of view, the Canadian branch will be taxed for the profits made in this country, however, under the double tax treaties signed by Canada with many countries, the branch is deemed a permanent established and the parent company can benefit from various tax reliefs.

If you want to open a company or a branch office in Canada and need assistance, please feel free to contact our company formation agents.


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