AFFORDABLE Incorporation for International Students, Filed by a CPA Firm

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.

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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.

Gondaliya CPA team preparing a corporation filing for an international student
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Customers and platforms want an entity

Agencies, universities, app stores and wholesalers open accounts against a corporation with a business number, not against a student with no Canadian credit file, and limited liability keeps a supplier dispute out of your own name.

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Others can do the daily work

The corporation can lawfully do what you may not have hours for. It can employ or contract a citizen or permanent resident to run daily operations while your own participation stays inside the limit your permit allows.

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Converting a proprietorship

Where a sole proprietorship ran first, section 85 of the Income Tax Act carries goodwill, equipment and inventory across at elected amounts, and only a share sale reaches the lifetime capital gains exemption on qualified small business corporation shares. The exemption rose to $1,250,000 for dispositions after 24 June 2024 and is indexed to inflation from 2026.

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One warning

Tuition credits on your T2202 do not reduce tax on split income at all, and that single point changes how the shares should be issued.

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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.

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The work-hour condition

Immigration, Refugees and Citizenship Canada permits an eligible full-time student at a designated learning institution to work up to 24 hours per week off campus during a regular class session, and full time during a scheduled break. Work may only begin once your program starts.

The permit must carry a condition such as “May work 24 hours per week off campus or full-time during regular breaks if meeting criteria outlined in paragraph 186(v) of the IRPR”. Read the condition printed on your own permit before you take any payment.

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Self-employment counts, and the hours are yours to prove

IRCC states that a self-employed person is responsible for keeping track of hours worked off campus and proving compliance with the study permit conditions. Hours count as time spent earning wages, being paid for a service or a product, or collecting a commission.

So does the consequence: working more than 24 hours per week violates your permit conditions, you can lose student status, and you may not be approved for a future permit.

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What work means

Section 2 of the Immigration and Refugee Protection Regulations defines work as an activity for which wages are paid or commission is earned, or that is in direct competition with the activities of Canadian citizens or permanent residents in the Canadian labour market. Running your own company is not treated differently from a shift at a store.

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Owning shares is not the same as working

A share is a property interest. Performing services is work. A student can hold shares while a co-founder or employee with unrestricted authorization carries operations, and a dividend is a return on property rather than payment for a service. Ontario imposes no director residency requirement under the Business Corporations Act, so a student may be named a director.

Whether acting as a director, signing contracts or managing staff is itself work under section 2 is not answered in one published IRCC line, and a CPA firm may not answer it. Ask a consultant registered with the College of Immigration and Citizenship Consultants or a licensed lawyer, in writing.

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Tax residency is a separate test

The Canada Revenue Agency decides your status on residential ties, not on your permit, treating you as a resident, non-resident, deemed resident or deemed non-resident. Significant residential ties are a home in Canada, a spouse or common-law partner in Canada, and dependants in Canada.

A person without significant ties present 183 days or more in a calendar year may be a deemed resident. A resident student reports world income, and Form NR74 puts the question to the CRA in writing.

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Get that answer in writing

Get the immigration answer in writing before you incorporate or take a payment. We do not give immigration advice and we will not file for a student who has not had the conversation.

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.

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Most student businesses charge 13%

Most student businesses supply taxable services at 13% in Ontario, including web design, social media, photography, e-commerce, delivery and consulting.

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Two exceptions

Tutoring or instructing an individual in a course approved for credit by, or following a curriculum designated by, a school authority is exempt under section 9 of Part III of Schedule V to the Excise Tax Act, so no HST is charged and no input tax credits are claimed.

Services supplied to a non-resident client outside Canada may instead be zero-rated at 0% under Part V of Schedule VI, which keeps the credits. We confirm the treatment of each line before you invoice.

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Voluntary registration

Voluntary registration below $30,000 pays where start-up spending is heavy, because a laptop, camera or inventory build produces input tax credits a small supplier loses.

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The quick method

The quick method suits a service company with few credits. It stops at $400,000 of annual worldwide taxable supplies including GST/HST, carries a 1% credit on the first $30,000 of eligible supplies each year, and is closed to bookkeeping, tax, legal and accounting businesses.

Common CRA Issues for International Students in Business

1

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.

2

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.

3

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.

4

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.

5

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.

6

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.

7

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

Before Anything Is Filed

What a CPA Checks Before You Incorporate

Start Your Intake Form

We check eight things before a student’s company is filed, and the first one can stop the file.

No written immigration advice, no filing.
Check 1

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.

Check 2

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.

Check 3

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.

Check 4

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.

Check 5

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.

Check 6

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.

Check 7

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.

Check 8

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
See Full Pricing

Our Services for International Students

Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.

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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.

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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.

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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.

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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.

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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.

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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.

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Corporate Tax Filing for International Students

The T2 with GIFI statements, prepared from books reconciled to Stripe, PayPal, Shopify and the business bank account.

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Federal Incorporation for International Students

A federal corporation where you may move provinces after graduation, with the name protected across Canada.

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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 incorporation team for international students

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

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Fully Licensed CPA Ontario
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1,300+ ★★★★★
Google Reviews
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30-Day Money-Back Guarantee
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60-Day Fee-Matching Policy

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
Start Your Incorporation

Our Simple Process

How Your Incorporation Works as an International Student

Start for $35

Six steps from the intake form to a corporation with a business number and the right share register.

Nothing is filed until you approve the draft.
Step 1

Send the intake form

Your permit conditions, the written immigration advice you received, the founders and investors, and whether a sole proprietorship already trades.

Step 2

A CPA reviews the file

Voting control, residency, the HST treatment of your supplies and every proposed shareholder against section 120.4.

Step 3

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.

Step 4

You approve the draft

You see the articles, the share classes, the directors and the registered office before anything is filed.

Step 5

Filed online

Ontario articles go through the Ontario Business Registry and federal articles through Corporations Canada.

Step 6

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.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242

What Our Clients Say

These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.

International Student Incorporation FAQs

Can an international student start a business in Canada?

Nothing in the Business Corporations Act (Ontario) stops an international student from incorporating, because Ontario removed its director residency requirement effective 5 July 2021, but whether you may work in that business is governed by your study permit. Immigration, Refugees and Citizenship Canada limits an eligible off-campus student to 24 hours of work per week during a regular class session. Speak to a consultant registered with the College of Immigration and Citizenship Consultants or a licensed lawyer before you incorporate.

Does self-employment count as work on a study permit?

Yes, Immigration, Refugees and Citizenship Canada states that a self-employed person must keep track of the hours worked off campus and prove compliance with the conditions of the study permit. Section 2 of the Immigration and Refugee Protection Regulations defines work as an activity for which wages are paid or commission is earned, or that competes directly with Canadian citizens and permanent residents in the labour market. Hours earning fees in your own company count toward the 24-hour limit.

How many hours a week can an international student work off campus?

Up to 24 hours per week during a regular class session, and full time during a scheduled break at your designated learning institution, according to Immigration, Refugees and Citizenship Canada. Work may only begin once your study program has started. Check the work condition printed on your own permit.

Is owning shares in a corporation the same as working in it?

No, holding a share is a property interest while performing services is work, and the definition in section 2 of the Immigration and Refugee Protection Regulations turns on the activity rather than on the share. A student can hold shares while a co-founder or employee with unrestricted work authorization runs operations. Whether acting as a director is itself work is not settled in one published IRCC line, so get that answer from a licensed representative in writing.

Am I a resident of Canada for tax purposes as an international student?

The Canada Revenue Agency decides your status on residential ties rather than on your permit, treating you as a resident, a non-resident, a deemed resident or a deemed non-resident. Significant residential ties are a home in Canada, a spouse or common-law partner in Canada, and dependants in Canada, and a person without significant ties present 183 days or more in a calendar year may be a deemed resident. A resident student reports world income, and Form NR74 puts the question to the CRA in writing.

Can I incorporate on a study permit without a Social Insurance Number?

Yes, you can file articles of incorporation on a study permit without a Social Insurance Number, because the Ontario Business Registry does not ask for one, but the Canada Revenue Agency needs a SIN before it will open the corporation’s business number. Service Canada issues a SIN to a temporary resident whose work or study permit authorizes them to work, and that number begins with 9 and expires with the immigration document.

When must my student business register for HST?

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, and you must register within 29 days of your effective date of registration. Ontario taxable supplies are charged at 13%. Designated tutoring is exempt and services to a non-resident client may be zero-rated, so a CPA should confirm the treatment before you invoice.

Will my tuition credits reduce tax on dividends from my company?

No, tuition amounts reported on the T2202 cannot reduce tax on split income under section 120.4 of the Income Tax Act, which applies the top marginal rate to a dividend caught by those rules. 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 does not apply where 90% or more of the corporation’s business income comes from services.

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.

Open Corporation for $35 is a department of Gondaliya CPA.