Incorporate a Business in Canada as an International Student for $35
Start your Canadian corporation for $35, HST included. Government fees are separate. Complete the intake form and a CPA checks the share structure, your Canadian-controlled private corporation position and your HST threshold before we file.
A study permit, not a college, sets the limits on what you may do here. Immigration, Refugees and Citizenship Canada allows an eligible full-time student at a designated learning institution to work up to 24 hours per week off campus during a class session, and it treats self-employment as work. Holding a share is not the same act as running the business day to day. We prepare and file your Canadian corporation for $35.00, HST included, with registry charges at cost. Open Corporation for $35 is a department of Gondaliya CPA.
A licensed immigration representative settles the permit question first.
Why International Students Starting a Business Incorporate
Active business income inside the $500,000 federal business limit is taxed at 9% federally and 3.2% in Ontario, a combined 12.2%, where the company is a Canadian-controlled private corporation. The same dollar earned personally can face an Ontario marginal rate reaching 53.53%.
The deferral is the real reason. Profit left inside the corporation is taxed once at 12.2% and stays there while you finish a degree, so the business funds its own growth instead of your tax bill.
A corporation is a separate person, which matters when the founder holds a temporary document. The company keeps its contracts, bank account, business number and filing history when a study permit expires and a post-graduation work permit begins.
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Professional Corporation Rules
Starting a business as an international student is not a regulated profession, so there is no college, no certificate of authorization, no professional corporation and no restriction on who may hold a share. Immigration law and tax law take the college’s place.
Typical Share Structure for an International Student’s Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The student founder | Yes | Discretionary | Control and growth, held as property rather than earned as wages |
| Class B common | A co-founder who is a citizen, permanent resident or open work permit holder | Yes | Discretionary | Unrestricted authorization to run daily operations |
| Class C preferred | A parent or relative who funded the launch, often non-resident | No | Fixed | Returns their capital without handing voting control to a non-resident |
| Class D common | A spouse in Canada on a spousal open work permit, working in the business | No | Discretionary | Splitting only where a tax on split income exception is met |
| Class E common | A holding company, once your status is settled | No | Discretionary | Moves retained profit out of operating risk |
Section 120.4 of the Income Tax Act taxes a dividend paid to a related individual at the top marginal rate unless an exception applies, and tuition credits cannot reduce it. The excluded shares exception requires the shareholder to be 25 or older and to hold 10% or more of the votes and 10% or more of the fair market value, and it is closed where 90% or more of the corporation’s business income comes from services, which rules out most students on age alone and most service businesses on top of that.
The excluded business exception turns on an average of 20 hours a week of active engagement in the year or in any five earlier years, and a student capped at 24 hours can only reach it by spending nearly every permitted hour on the business and logging it. A CPA sizes each class, keeps voting control with a Canadian resident so the CCPC test is not failed, and starts the hours log in month one.
HST for International Students Starting a Business
Registration is compulsory once worldwide taxable supplies exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, under the Excise Tax Act. You must register within 29 days of your effective date of registration, and where the threshold is passed in one quarter that date is no later than the day of the supply that took you past $30,000.
Common CRA Issues for International Students in Business
Platform and cash income not reported
Triggered by Stripe, PayPal, Shopify, delivery apps and e-transfers landing in a personal account while the return shows less. The Canada Revenue Agency obtains platform records and matches deposits.
World income missed in the year you became a resident
Triggered by a first T1 showing Canadian income only while foreign rent, interest or business income continued after ties were established.
Tuition, rent and flights home paid by the company
Subsection 15(1) of the Income Tax Act assesses a shareholder benefit with no offsetting deduction, and subsection 15(2) taxes a shareholder loan left outstanding beyond the end of the following tax year.
Dividends to parents or siblings reassessed under TOSI
Triggered by paying a relative who neither works in the business nor holds excluded shares. Section 120.4 applies the top marginal rate.
Canadian-controlled private corporation status lost
Triggered by voting shares issued to parents overseas so control sits with non-residents. The $500,000 business limit and the 12.2% Ontario rate go with it, tested at the year end.
Late HST registration
Triggered by passing $30,000 and continuing to invoice without an RT account. Tax is assessed on sales already made, plus interest, whether or not the customer was charged.
Foreign property not disclosed
Form T1135 is required once specified foreign property exceeds $100,000 in cost amount at any time in the year. Under subsection 233.3(3) of the Income Tax Act it is not required for the year you first become resident in Canada, and it is required every year after.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Before incorporation | Written advice from a registered immigration consultant or licensed lawyer | You | Loss of student status, refusal of a future permit |
| Before incorporation | Social Insurance Number application, no fee, permit must authorize work | You, at Service Canada | No SIN, so no business number and no payroll account |
| Within 60 days of incorporation | Initial Return, Corporations Information Act, Ontario | Us, Ontario Business Registry | Non-compliance under the Act. No fee |
| Week 1 to 2 | Business number and RC0001 corporate income tax account | Your CPA, with the CRA | No account to file the T2 against |
| Every week, ongoing | Off-campus hours log against the 24-hour weekly limit | You | No evidence of compliance if IRCC asks |
| Within 29 days of the effective date | HST registration, RT account | Your CPA, with the CRA | Tax assessed on sales already made, plus interest |
| Before the first pay run | Payroll RP0001 account, then source deductions by the 15th of each month | Your CPA, then the corporation | Penalty of 3% to 10%, 20% on a repeat |
| Within 53 weeks of incorporation | First fiscal year end chosen | Your CPA | Hard to change once the first T2 is filed |
| One or three months after each period end | First HST return, monthly or quarterly filer | Your CPA, with the CRA | Late filing penalty and interest |
| 30 April | Personal T1, with the T2202 and Form T1135 where required | Your CPA, with the CRA | 5% of the balance plus 1% per month, and a separate T1135 penalty |
| 3 months after year end | Part I tax balance, CCPC claiming the small business deduction | The corporation, to the CRA | Interest from the next day |
| 6 months after year end | T2 return, and the Ontario Annual Return | Your CPA, and us | 5% of unpaid tax plus 1% per month, then cancellation |
| Within 60 days of the anniversary | Federal annual return, $12.00, where incorporated federally | Us, Corporations Canada | Administrative dissolution |
| Year two | Corporate instalments begin past $3,000 of tax payable | The corporation, to the CRA | Instalment interest |
We check eight things before a student’s company is filed, and the first one can stop the file.
Written immigration advice
Whether you have written immigration advice, because self-employment is work under section 2 of the Immigration and Refugee Protection Regulations and the hours belong to your permit, not to us.
Who does the work
Who does the work and who holds the shares. If your permitted hours cannot cover operations, we look at whether a co-founder or contractor with unrestricted authorization should hold the operating role, and we build the share register to match reality rather than intention.
Voting control
Where voting control sits at the first year end. Shares issued to parents overseas can put control in non-resident hands, costing the corporation its Canadian-controlled private corporation status, the $500,000 business limit and the 12.2% combined Ontario rate.
Residency date
Your residency date and residential ties, because they decide whether your first T1 reports world income, whether Form NR74 should go to the CRA, and what Canadian cost your foreign assets take.
How you will be paid
Salary creates RRSP room, a T4 and a record a bank will read, but it is payment for services and it consumes permitted hours, while a dividend is a return on shares. That choice is a tax decision and an immigration decision at once, so both advisers see it.
TOSI on every shareholder
Your TOSI position on every proposed shareholder, including age, hours and share percentage, before a class is issued rather than after a dividend is declared.
HST treatment
Whether your supplies are taxable at 13%, exempt as designated tutoring, or zero-rated as an export, and whether registering voluntarily below $30,000 recovers more than it costs.
Year end and structure
The fiscal year end, the register of individuals with significant control that Ontario requires, and whether a section 85 rollover of an existing proprietorship or a later holding company belongs in the plan.
AFFORDABLE Incorporation Pricing for International Students
Federal incorporation includes the name search. Every government fee is its own line, at cost.
| Item | Amount | HST | Total | Who charges it |
|---|---|---|---|---|
| Incorporation preparation and filing | $35.00 | Included | $35.00 | Open Corporation for $35 |
| Ontario articles of incorporation, online | $300.00 | None | $300.00 | Ontario Business Registry |
| Federal articles of incorporation, online | $200.00 | None | $200.00 | Corporations Canada |
| Ontario Initial Return and Annual Return | $0.00 | None | $0.00 | Ontario Business Registry |
| Federal annual return | $12.00 | None | $12.00 | Corporations Canada |
| Social Insurance Number application | $0.00 | None | $0.00 | Service Canada |
| Business number and program accounts | $0.00 | None | $0.00 | Canada Revenue Agency |
| Ontario NUANS report, named corporations only | $25.00 | Included | $25.00 | Ordered through us |
| Immigration advice | Not our fee. Set by the representative | Not our fee | Not our fee | Registered immigration consultant or lawyer |
Our Services for International Students
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for International Students
The name search a named student company needs, so the brand on your website and the corporate name on your invoices match.
Incorporation Service for International Students
Articles drafted for a student founder, a co-founder with unrestricted work authorization and a parent who funded the launch, with voting control kept in Canada.
Address Service for International Students
A registered office address in downtown Toronto for the public register and corporate mail, so a residence or rented room never appears on the record.
Payroll Service for International Students
Payroll for a co-founder or staff who run daily operations, with source deductions remitted by the 15th and T4 slips filed on time.
One Window Service for International Students
The articles, the business number, the HST and payroll accounts and the Initial Return set up in one engagement, once your SIN is issued.
Corporate Annual Filing for International Students
The Ontario Annual Return or the federal annual return filed on time, with director, officer and address changes kept current as your permit changes.
Corporate Tax Filing for International Students
The T2 with GIFI statements, prepared from books reconciled to Stripe, PayPal, Shopify and the business bank account.
Federal Incorporation for International Students
A federal corporation where you may move provinces after graduation, with the name protected across Canada.
Holding Company Setup for International Students
A holding company once your status is settled, reviewed first against the shared $500,000 small business limit.
The Bundle for International Students Starting a Business
After incorporation the ongoing work moves to the parent firm. Gondaliya CPA keeps the books in Xero, maintains the RC, RT and RP program accounts, files the HST returns, runs payroll where a founder or co-founder takes salary, and prepares the T2 and the annual return. The firm also prepares your personal T1, claims the tuition amounts on your T2202, and keeps the corporate and personal files consistent where you still hold an account or property overseas. When you move to a post-graduation work permit and start saving for a first home, that advice sits in the same file.
Why International Students Use Us
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Our clients have left us 1,300+ five-star Google reviews, and we work from 13 Ontario offices, open 9:00 AM to 8:30 PM, Monday to Sunday. We back every filing with a 30-day money-back guarantee and a 60-day fee-matching policy, and we are a Xero Partner Award Winner 2026. The platform is operated by WealthBamboo Inc., a federal corporation. Open Corporation for $35 is a department of Gondaliya CPA.
- CPA Ontario firm registration number 61330051
- 1,300+ five-star Google reviews
- 13 Ontario offices
- Open 9:00 AM to 8:30 PM, Monday to Sunday
- 30-day money-back guarantee
- 60-day fee-matching policy
- Xero Partner Award Winner 2026
Google Reviews
Free CPA Consultation for International Students
Case Studies: International Student Incorporation
Three Ontario student files, each showing where the founder started and what changed before anything went to the registry or the CRA. In each one the student had written advice from a licensed immigration representative before we filed.
Brampton Web Design Student – Hours Nobody Was Counting
The problem: A college student in Brampton was building websites for local shops through a personal PayPal account, working evenings and weekends with no record of hours and no idea how close the work came to the 24-hour weekly limit.
What we did: After the student had written immigration advice, we incorporated with a permanent resident co-founder holding voting common shares and running client delivery, set up a weekly hours log for the student from month one, and moved PayPal and the bank account into the corporation’s name.
The result:
- Numbered Ontario corporation filed at $335.00
- Weekly hours log kept from the first invoice
- Platform deposits reconciled in the corporation
Waterloo App Founder – Parents Holding the Votes
The problem: A Waterloo engineering student planned to issue voting shares to parents abroad who were funding the launch, which would have put control in non-resident hands and cost the corporation its Canadian-controlled private corporation status.
What we did: We issued the parents fixed-value non-voting preferred shares for their capital, kept the voting common shares with the student and a Canadian co-founder, and incorporated federally so the name was protected across Canada.
The result:
- Federal corporation filed at $235.00
- CCPC status and the 12.2% Ontario rate kept
- Parents’ capital returned without voting control
Mississauga Tutoring Business – HST on the Wrong Lines
The problem: A Mississauga university student tutoring high school students in Ontario curriculum courses, and also selling general coding lessons, was about to charge 13% HST on everything.
What we did: We separated tutoring that follows a curriculum designated by a school authority, which is exempt, from coding lessons outside any designated curriculum, which are taxable, and tested whether voluntary registration would recover more than it cost.
The result:
- Named Ontario corporation filed at $360.00
- Exempt and taxable lines separated on invoices
- HST registration timed to the $30,000 threshold
Six steps from the intake form to a corporation with a business number and the right share register.
Send the intake form
Your permit conditions, the written immigration advice you received, the founders and investors, and whether a sole proprietorship already trades.
A CPA reviews the file
Voting control, residency, the HST treatment of your supplies and every proposed shareholder against section 120.4.
Numbered or named
A numbered company needs no search. A named Ontario company needs a NUANS report at $25, and the federal online filing includes its name search.
You approve the draft
You see the articles, the share classes, the directors and the registered office before anything is filed.
Filed online
Ontario articles go through the Ontario Business Registry and federal articles through Corporations Canada.
Ready to trade
The business number with the program accounts you need, the Initial Return, and an hours log template for your own off-campus work.
Meet the Lead CPAs Behind Your Corporation
A Chartered Professional Accountant checks the share register, residency and the HST position before anything is filed.
What Our Clients Say
These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.
Incorporating as an International Student Anywhere in Canada
We incorporate for international students in Brampton, Mississauga, Scarborough, North York and Waterloo from thirteen Ontario offices, and remotely across Canada. The filing is electronic, so no visit is needed. Ontario has no director residency requirement, and the federal and provincial rules elsewhere are confirmed before you file.
International Student Incorporation FAQs
Can an international student start a business in Canada?
Does self-employment count as work on a study permit?
How many hours a week can an international student work off campus?
Is owning shares in a corporation the same as working in it?
Am I a resident of Canada for tax purposes as an international student?
Can I incorporate on a study permit without a Social Insurance Number?
When must my student business register for HST?
Will my tuition credits reduce tax on dividends from my company?
Related Industries We Serve
Immigrants and Newcomers
- Director residency by province
- Temporary SIN and business number
- First-year tax residency
Non-Residents Incorporating in Canada
- Resident director rules
- Part XIII withholding
- CCPC control tests
IT Consultants and Software Developers
- Personal services business test
- US clients and zero-rating
- SR&ED credits
E-commerce and Amazon Sellers
- Marketplace operator HST
- Inventory at landed cost
- US sales tax
Read next: How to incorporate a business in Canada · Director residency requirements · What happens after you incorporate
Get the Immigration Answer First, Then Incorporate
Get the immigration answer in writing from a licensed representative, then complete one form. Pay $35 including HST, and a CPA sets the shares, the year end, the business number and your first personal return.
No legal advice. Gondaliya CPA Professional Corporation is a firm of Chartered Professional Accountants licensed by CPA Ontario, firm registration number 61330051. It is not a law firm. We prepare and file corporate documents and we provide accounting and tax advice. Nothing on this page is legal advice, and reading it creates no solicitor and client relationship. For legal advice, including advice on a shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.
Open Corporation for $35 is a department of Gondaliya CPA.
