By Sharad Gondaliya, CPA
German founders and companies often reach Canada through an Ontario corporation. You can own 100% of it, be its sole director, and set it up from Germany without travelling. This guide covers the Canadian side: structure, steps, fees, tax and banking.
Open Corporation for $35 is a department of Gondaliya CPA.
Choose the structure
| Structure | Who owns the Canadian corporation | Typical use |
|---|---|---|
| Personal ownership | You, as an individual in Germany | Founders starting fresh in Canada |
| Subsidiary of a GmbH | Your German company | Established businesses entering the Canadian market |
Either way, Ontario allows 100% German directors and shareholders. A federal corporation would need at least 25% resident Canadian directors, so we recommend Ontario, or BC if you will operate in British Columbia.
Steps
- Choose a named company, which needs an Ontario NUANS report, or a numbered company.
- Provide passport details and home addresses for each director and shareholder.
- Decide the share structure and who signs for the GmbH, if it is the shareholder.
- Provide an Ontario registered office address. We offer one at 55 Queen St E, Suite 1205, Toronto.
- We file the articles with the Ontario Business Registry.
- We register all CRA accounts: Business Number, GST/HST, payroll and corporate income tax. No SIN is needed.
- We help you open a Canadian business account without visiting Canada; the financial institution gives final approval.
Open Corporation for $35 is a department of Gondaliya CPA. The same team handles incorporation, CRA registration and your annual filings.
Fees
| Item | Amount |
|---|---|
| Our service fee | $35.00 |
| HST on our fee (13%) | $4.55 |
| Ontario government fee (no HST) | $300.00 |
| Ontario NUANS report, named company | $25.00 |
| Total, named company | $364.55 |
| Optional registered office address, per year | $1,000.00 |
| HST on the address service (13%) | $130.00 |
Canadian tax for German owners
- The Ontario corporation is resident in Canada and files a T2 return every year.
- Because it is controlled by non-residents, it pays the general combined rate of 26.5% on active business income.
- Dividends paid to Germany carry Canadian withholding tax under the Canada-Germany tax treaty.
| Shareholder | Canadian withholding on dividends |
|---|---|
| German company holding at least 10% of the votes | 5% |
| Individual resident in Germany | 15% |
For the German side, including how German tax treats Canadian dividends, please speak with your Steuerberater.
Practical points
- Toronto is usually six hours behind Germany, and five hours for a few weeks each spring and autumn. We work 9 AM to 8:30 PM Toronto time, seven days a week, which overlaps your afternoon and evening.
- The Canada-EU trade agreement, CETA, removes tariffs on most goods traded between Canada and the EU. Your customs broker confirms origin rules for each product.
- If you import goods, the Canadian corporation can act as importer of record and register with CBSA through the CARM portal.
Open Corporation for $35 is a department of Gondaliya CPA. Questions? Please email info@opencorporationfor35.ca.
FAQs
Do I need a Canadian visa to own the corporation?
No. Owning or directing a Canadian corporation does not require a visa. Working in Canada in person is a separate immigration question.
Can my GmbH be the only shareholder?
Yes. The register of individuals with significant control then lists the people who own or control the GmbH.
Who is Open Corporation for $35?
Open Corporation for $35 is a department of Gondaliya CPA. Gondaliya CPA is a CPA Ontario firm in Toronto, led by Sharad Gondaliya, CPA.
Start from Germany
Please start at opencorporationfor35.ca or email info@opencorporationfor35.ca. Open Corporation for $35 is a department of Gondaliya CPA.
