Incorporate a Business in Canada as a Newcomer for $35
Start your Canadian corporation for $35, HST included. Government fees are separate. Complete the intake form and a CPA checks the director residency rule for your province, your CCPC position and your residency date before we file.
Which province you file in decides how quickly you can start. Ontario is the usual answer in the Greater Toronto Area because it imposes no director residency rule, while federal incorporation does. We prepare and file your Canadian corporation for $35.00, HST included, and the registry charge appears at the government’s price. Open Corporation for $35 is a department of Gondaliya CPA.
The costly error is issuing voting shares to a parent or spouse still living abroad, which can end Canadian-controlled private corporation status and the small business deduction on your first $500,000. A Chartered Professional Accountant tests that at the outset.
Why Immigrants and Newcomers 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%. That rate belongs only to a Canadian-controlled private corporation, and the CCPC test turns on who controls the company, not on who lives where.
The Canada Revenue Agency states that a CCPC must not be “controlled directly or indirectly by one or more non-resident persons”. A company set up so that a parent or spouse still overseas holds the majority is not a CCPC, and the small business deduction is gone before the first sale.
The deferral matters more here than almost anywhere. A newcomer is rebuilding capital, and profit left inside a CCPC is taxed once at 12.2% rather than at a personal marginal rate reaching 53.53% in Ontario.
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Professional Corporation Rules
Starting a business as a newcomer 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. Five practical questions take the college’s place.
Where you can incorporate immediately
Federal incorporation carries a residency rule. Most provinces do not. A “resident Canadian” under these rules is a citizen or permanent resident ordinarily resident in Canada, so a work or study permit does not satisfy it.
| Jurisdiction | Director residency requirement | Newcomer alone can incorporate |
|---|---|---|
| Federal, CBCA | 25% of directors must be resident Canadians, and at least 1 where there are fewer than 4. CBCA s. 105(3) | No |
| Ontario, OBCA | None, repealed effective 5 July 2021 | Yes |
| British Columbia | None | Yes |
| Alberta | None, the 25% rule was repealed effective 29 March 2021 | Yes |
| Quebec | None. A head office physically in Quebec is required | Yes |
| New Brunswick | None. Business Corporations Act s. 60 contains no residency test | Yes |
| Newfoundland and Labrador | None. The former 25% rule in s. 174 was repealed by 2021 c26 s4 | Yes |
| Manitoba | 25% of directors must be resident Canadians, so a sole director must be one. The Corporations Act s. 100(3) | No, unless a resident Canadian joins the board |
Ontario is the usual answer for a newcomer in the Greater Toronto Area, because there is no director residency rule and the Ontario Business Registry accepts the address you already rent. A post office box alone is not accepted. See director residency requirements province by province.
Typical Share Structure for a Newcomer’s Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The founder, once resident in Canada | Yes | Discretionary | Control, growth, and the votes that keep the company Canadian-controlled |
| Class B common | A spouse resident in Canada and working in the business | Yes | Discretionary | Splitting where a TOSI exception is met |
| Class C preferred | A relative abroad who funded the launch | No | Fixed | Return of capital without handing control to a non-resident |
| Class D common | A holding company or family trust, once the family has landed | No | Discretionary | Moves surplus out of operating risk and holds future growth |
Section 120.4 of the Income Tax Act taxes a dividend paid to a family member at the top marginal rate unless an exception applies. The excluded shares exception requires the shareholder to be 25 or older and to hold shares carrying 10% or more of the votes and 10% or more of the fair market value of all issued shares.
The trap for newcomers is that the exceptions test participation and residence in Canada, so a spouse who has not landed rarely qualifies. A CPA sizes each class, keeps voting control with a Canadian resident so the CCPC test is not failed, and records hours worked from the first month so an exception can be evidenced later.
HST for Newcomers Starting a Business
Registration is compulsory once worldwide taxable supplies exceed $30,000 in a single calendar quarter or over the last four consecutive calendar quarters, under the Excise Tax Act. Below that you are a small supplier and registration is optional.
Common CRA Issues for Newcomer Business Owners
CCPC status lost to non-resident control
Triggered by voting shares issued to a parent, sibling or spouse still living abroad, or by a foreign parent company. The test is applied at year end, the small business deduction on the first $500,000 disappears, and the reassessment usually reaches back more than one year.
World income under-reported in the arrival year
Triggered by a first T1 showing Canadian income only while foreign rent, dividends, pension or business income continued after the landing date. The Canada Revenue Agency receives foreign account data under the common reporting standard and matches it.
Foreign property not disclosed
Triggered by keeping a house, deposit account or share portfolio overseas past the first year of residency. Form T1135 is required once specified foreign property exceeds $100,000 in cost amount at any time in the year, but not for the year you first become a resident of Canada.
Personal and family costs paid by the company
Triggered by rent, tuition, immigration fees or flights home running through the corporate account. 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.
Late HST registration
Triggered by passing $30,000 and continuing to invoice without an RT account. The tax is assessed on sales already made, plus interest, whether or not the customer was charged.
Fees paid to relatives abroad
Triggered by management, consulting or licence fees deducted in the T2 and paid to a non-resident. Part XIII of the Income Tax Act requires 25% withholding unless a treaty reduces it, with an NR4 slip due by 31 March.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Before incorporation | Social Insurance Number application, no fee | You, at Service Canada | No business number, no payroll account, no CRA online access |
| 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 |
| 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 and TD1 forms | Your CPA, with the CRA | Source deductions cannot be remitted |
| 15th of each month | Payroll source deductions | The corporation, to the CRA | 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 after the year of arrival | First personal T1 as a part-year resident, with 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 newcomer’s company is filed, and the first two sometimes change the whole plan.
Who controls the company at year end
If voting control sits with people not resident in Canada, the corporation is not a Canadian-controlled private corporation, the $500,000 business limit and the 12.2% combined Ontario rate are lost, and the shares must be restructured before filing rather than after.
Your own residency date
We fix the day you established significant residential ties, because that date splits your first personal return, starts world income reporting, sets the Canadian cost of your foreign assets, and decides whether Form NR74 should go to the Canada Revenue Agency.
Which jurisdiction you can use
Federal incorporation needs a resident Canadian director where there are fewer than four, so a sole founder without permanent residence usually incorporates provincially.
Any immigration file
Whether an immigration file depends on the structure, because a Start-up Visa or provincial nominee application fixes ownership percentages in advance and the share register must match the commitment certificate.
What you own abroad
What you already own abroad, because a foreign property, company or account changes your personal filings.
Your HST position
When worldwide taxable supplies first passed $30,000, and whether start-up spending justifies registering voluntarily before you have to.
Salary or dividends in year one
A newcomer with no Canadian earnings history usually needs T4 income to support a mortgage, an immigration file, or RRSP room.
Year end, registers and structure
The fiscal year end, the register of individuals with significant control the bank will ask to see, and whether a holding company or a section 85 rollover of an existing proprietorship belongs in the structure now or later.
AFFORDABLE Incorporation Pricing for Newcomers
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 |
| British Columbia incorporation application | $350.00 | None | $350.00 | BC Registries and Online Services |
| Ontario Initial and Annual Returns | $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 |
Our Services for Newcomers
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Newcomers
The name search a named company needs, with your choices screened first, so the name works in Canada as well as in the language your customers use.
Incorporation Service for Newcomers
Articles drafted for the shareholders you have now and the family you expect to arrive, with voting control kept in Canada from day one.
Address Service for Newcomers
A registered office address in downtown Toronto for the public register and corporate mail while you are still settling where to live.
Payroll Service for Newcomers
The payroll account opened before the first pay run, with the T4 salary a newcomer often needs for a mortgage or an immigration file.
One Window Service for Newcomers
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 Newcomers
The Ontario Annual Return or the federal annual return filed on time, with director, officer and address changes kept current.
Corporate Tax Filing for Newcomers
The T2 with GIFI statements, kept consistent with your first part-year personal return and any foreign reporting.
Federal Incorporation for Newcomers
A federal corporation once your board includes a resident Canadian, with the name protected across Canada.
Holding Company Setup for Newcomers
A holding company that takes surplus cash out of the operating company once the family has landed and the business is earning.
The Bundle for Immigrants and Newcomers Starting a Business
After incorporation the ongoing work moves to the parent firm. Gondaliya CPA keeps the books in Xero, opens and maintains the RC, RT and RP program accounts, files the HST returns, runs payroll where a founder takes salary, and prepares the T2 and the annual return. The firm also prepares your first personal T1 as a part-year return, with world income reported from the arrival date, and keeps the corporate and personal files consistent where a foreign house or account remains.
Why Newcomers 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 Newcomers Starting a Business
Case Studies: Newcomer Business Incorporation
Three Ontario newcomer files, each showing where the founder started and what changed before anything went to the registry or the Canada Revenue Agency.
Brampton Trucking Dispatcher – A Parent Abroad Holding the Majority
The problem: A founder on a work permit in Brampton planned to issue 60% of the voting shares to a parent in India who was funding the start-up, with the founder holding the rest. The company would have been controlled by a non-resident from its first day.
What we did: We kept the voting common shares with the founder, who was resident in Canada, and gave the parent fixed-dividend preferred shares for the money advanced. The company was incorporated in Ontario, where no resident director is required, and the business number was opened on the founder’s temporary SIN.
The result:
- Numbered Ontario corporation filed at $335.00
- Canadian-controlled private corporation from day one
- Parent’s capital returned through preferred shares
Scarborough Bakery – A First Personal Return With Income Left Behind
The problem: A couple who landed in March opened a bakery in Scarborough and kept a rented flat and a fixed deposit in their home country. Their draft first T1 showed only Canadian wages from April onward.
What we did: We fixed the residency date at the March landing, reported world income from that date on a part-year return, and set the Canadian cost of the foreign flat and deposit at arrival. The corporation registered voluntarily for HST before opening so the oven and fit-out produced input tax credits.
The result:
- Ontario named corporation filed at $360.00
- Part-year T1 with world income from the landing date
- Input tax credits claimed on the fit-out
Mississauga IT Founder – Federal Filing Without a Resident Director
The problem: A software founder in Mississauga on a post-graduation work permit had started a federal incorporation as the sole director, not knowing the CBCA needs at least one resident Canadian director on a board of fewer than four.
What we did: We filed in Ontario instead, where the founder could act as sole director, and noted that the company can continue federally later once the board includes a resident Canadian. Payroll was set up so the founder drew T4 salary for a mortgage application.
The result:
- Numbered Ontario corporation filed at $335.00
- Sole director allowed under the OBCA
- T4 salary history from the first year
Six steps from the intake form to a corporation with a business number, an HST account and a bank account in its own name.
Send the intake form
Owners, shares, your immigration status, your SIN if issued, your arrival date, and anything you own abroad.
A CPA reviews the file
Control at year end, the director residency rule for the jurisdiction, your residency date, and the shareholders 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 HST and payroll accounts, the Initial Return, and the registers your bank will ask to see.
Meet the Lead CPAs Behind Your Newcomer Corporation
A Chartered Professional Accountant checks residency, control 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 a Newcomer Anywhere in Canada
We incorporate newcomers from thirteen Ontario offices and remotely across Canada. The filing is electronic, so no visit is needed. Director residency rules differ by province, so a business outside Ontario is filed in a province that suits your status, and we confirm that registry’s fee in writing first.
Newcomer Incorporation FAQs
Can a newcomer incorporate a business in Canada without permanent residence?
Do I need a Social Insurance Number to incorporate?
Will my corporation qualify for the small business tax rate?
When do I become a resident of Canada for tax purposes?
When must a newcomer’s business register for HST?
Does a newcomer have to give the CRA a security deposit to register for GST/HST?
What does a bank ask for when a newcomer opens a business account?
Can my corporation support a Start-up Visa application?
Related Industries We Serve
IT Consultants
- Personal services business test
- Work permit founders
- US and overseas clients
Grocery and Convenience Stores
- Buying an existing store
- Zero-rated groceries
- Family staff on payroll
Cleaning Companies
- Staff or contractors
- WSIB and bonding
- HST on cleaning services
E-commerce and Amazon Sellers
- Marketplace HST rules
- Inventory at landed cost
- Stock in US warehouses
Set Up Properly in Your New Country
One form stands between you and a corporation set up properly in a new country. Pay $35 including HST, and a CPA checks the jurisdiction, the shares, the business number and your first-year tax residency.
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.
