Canada is one of the largest economies in the world and it attracts many international players in the financial industry. Also, Canada relies on a very good financial sector which is supervised by the Office of the Superintendent of Financial Institutions.
Foreign investors who want to open financial companies in Canada are allowed to do that, as long as they comply with the local legislation and obtain the necessary licenses depending on the type of financial institution they want to set up.
Below, our Canada company formation agents explain the procedure on how to open a financial company.
Types of financial companies in Canada
There are two main types of financial institutions which can be opened in Canada:
- companies which can receive money deposits;
- insurance companies.
Financial companies which can receive deposits are further divided into:
- banks;
- trust companies;
- loan companies;
- cooperatives.
Foreign banks can also set up branch offices in Canada.
Insurance companies are categorized into life and non-life insurance companies.
Registering a financial company in Canada
The company registration process of a Canadian financial company is the same as for any other type of business in this country. Our company registration consultants in Canada can assist with this procedure.
Once the company is registered, it must comply with the requirements of the Office of the Superintendent of Financial Institutions which will issue the charter of the financial institution.
Special requirements for financial companies in Canada
Banking institutions and insurance companies registered in Canada must also comply with the following requirements:
- banks accepting deposits of more than 150,000 CAD must become members of the Canada Deposit and Insurance Corporation;
- trust and loan companies must become members of the Canadian Payments Association;
- insurance companies must apply for an insurance company license and must meet certain capital requirements;
- all types of financial companies must obtain specific approvals depending on the province where they will operate.
For full information or assistance in opening a financial company in Canada, do not hesitate to contact our local company formation representatives.