Top 3 types of companies in Canada that businesses need to know (2025)

With a growing and vibrant economy, establishing a company in Canada is an ideal choice for business owners wishing to establish a company abroad.

However, besides such attractive advantages, your business should also pay attention to the necessary information before establishing a company in Canada because the process of establishing a company in Canada is very specific to the federal and provincial systems.

The following article by Global Links Asia will provide businesses with the necessary information related to the benefits of set up company in canada, Types and forms of company formation suitable for foreigners in Canada.

1. Can a foreign business owner open a company in Canada?

Foreign business owners can open a company in Canada. The process of opening a company in Canada for foreigners will have more requirements than for permanent residents in Canada. 

Depending on the type and state of Canada you choose, the requirements for opening a company will vary. Canadian companies do not require a minimum amount of charter capital, and there is no limit on the number of shares issued.

For more details on the process of opening a company in Canada, businesses should refer to the following article: Detailed process of opening a Canadian company.

2. What benefits do businesses receive when establishing a company in Canada?

• Easy to operate and trade cooperation between US and Canadian companies.
• High quality of life, ideal environment for investment and business.
• The legal system is transparent, safe, and protects the rights of investors.
• Prestigious company brand with corporation type, easy to attract investment.
• Foreigners own 100% of Canadian companies in some states.

That is why many foreign business owners choose Canada as the right country to open an international business and build their brand. 

GLA is the most popular choice for many experienced business owners when it comes to consulting and support in opening a company.

After consulting with GLA experts, they decided to establish businesses in states such as British Columbia, Quebec, New Brunswick, Manitoba and Ontario. 

In these areas, foreign owners can open a 100% owned company without having a Canadian citizen director.

To open a company that best meets development requirements, many business owners need to clarify the following company type.

3. Sole Proprietorship, Limited Partnership and Corporation in Canada

Theo Canadian federal and state governments, Enterprises can open 1 of the following 3 types of companies:

3.1. Sole Proprietorship

A sole proprietorship is a company owned by a single owner. A sole proprietorship is not considered a separate legal entity. 

This is the most common type of business entity in Canada, but it has certain advantages and disadvantages.

3.2. Limited Partnership

Partnerships A limited liability company is the most popular way to start a business in Canada, but it has certain advantages and disadvantages.

Important note

• To set up a company, you need a registered agent and a registered address in Canada.
• Every company MUST register at least one province for its headquarters. This is REQUIRED by law to start and operate a business. You cannot open a bank account, nor can you start a business without provincial registration.
• Non-residents living outside Canada, operating outside Canada must appoint a lawyer in Canada to register their business.

3.3. Joint Stock Company (Corporation)

A corporation is a separate legal entity protected by Canadian law. 

In Canada, businesses can choose between a Provincial corporation or a Federal corporation. 

To learn more about the differences between these two types, businesses should refer to the following article: Comparison between Provincial corporation and Federal corporation.

Important note

• To set up a company, you need a registered agent and a registered address in Canada.
• Every company MUST register in at least one province for its headquarters. This is REQUIRED by law to start & operate a business. You cannot open a bank account, nor can you start a business without provincial registration.
• A non-resident living outside Canada, operating outside Canada must appoint a lawyer in Canada to

3. What is the best type of Canadian company for foreign investors?

Provincial Corporation is the best choice for foreign investors.. Next is the limited partnership type.

Businesses can review the comparison table below to see the differences between these types in Canada.

4. How does GLA support businesses in opening joint stock companies in Canada?

At Global Links Asia, we have over XNUMX years of experience helping SMEs and entrepreneurs expand into international markets. We understand what you need and provide comprehensive support for a smooth, hassle-free share transfer process.

• State consulting tailored to your company needs.
• Consulting on suitable company types, helping businesses optimize business operations.
• Assisting Canadian companies in complying with laws and annual requirements in a legal, accurate and efficient manner.
• Tax and accounting services and financial reporting according to Canadian standards.
• Register to open and verify bank accounts with reputable banks in Canada, USA, Singapore, Hong Kong.

5. Questions about types of companies in Canada