How to Set Up an Entity in Canada (British Columbia Corporation)

Incorporating a business in British Columbia (BC), Canada, offers an attractive gateway for companies seeking access to Canada’s stable economy, skilled workforce, and strong legal protections. BC’s location on the Pacific coast also provides strategic access to Asia-Pacific markets. Many foreign investors find that setting up a local corporation gives credibility, regional presence, and control over operations.

The process is relatively streamlined compared to many jurisdictions, thanks to digital services for name registration and filings via BC Registries and Online Services. However, it still involves multiple regulatory steps, provincial plus federal tax registrations, and compliance obligations. Common challenges include coordinating federal and provincial requirements, managing cross-border tax issues, and ensuring ongoing compliance with Canadian accounting and employment rules.

On the plus side, a BC corporation grants you the ability to retain earnings locally and clarity on local liability structures. It also allows foreign investors to operate under a recognized Canadian legal entity rather than via branch or representative offices.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Canada?

Opening an entity in Canada means legally incorporating a company (federal or provincial) that registers with the Canada Revenue Agency (CRA) and the relevant provincial authorities. This grants the business domestic legal status, allows it to enter into contracts, hire employees, and pay Canadian taxes. Foreign investors typically choose to form a provincial corporation (such as in BC) or a federal corporation and then register provincially.

Entity overview in Canada (BC corporation)

Below is a summary of key attributes of a British Columbia corporation structure commonly used by foreign investors:

Step-by-step guide: How to open an entity in Canada (British Columbia Corporation)

Step 1: Choose the right structure

In British Columbia, your main options are:

• Provincial BC Corporation (incorporated under the BC Business Corporations Act): Ideal if you primarily operate in BC or across Canada but want a provincial base.
• Federal corporation (via Corporations Canada): Gives you name protection nationwide; then you’ll register extra-provincially in BC.
• Extra-provincial registration (branch): If you already have a federal or out-of-BC entity, you can register it to carry on business in BC without full incorporation.

A BC corporation limits liability to the corporate entity, permits share issuance, and separates personal and business obligations. A branch exposes the foreign parent’s liability directly in Canada.

Step 2: Verify business name availability

First, submit a Name Request application with BC Registries and Online Services (via Corporate Online) to check name availability and reserve it. You will receive a Name Request Number (NR) valid for 56 days, which you must use when filing for incorporation. Names must not be confusingly similar to existing entities, must include “Limited”, “Incorporated”, “Corp.” (or variants), and not infringe trademarks.

Step 3: Prepare incorporation documents

You will typically need:

• Name Request Number (NR)
• Form 1 – Incorporation Application (BC)
• Notice of Address (registered office and records address) (Form 2)
• Notice of Directors (listing initial directors, addresses, and residency status)
• Articles of Incorporation (setting share structure, classes of shares)
• Consent to Act by each director (signed)
• Bylaws and perhaps organizational resolutions (internal documents)

Step 4: Register with BC Registries (Corporate Online)

You submit the incorporation package through Corporate Online, BC’s digital filing system. After review, the province issues a Certificate of Incorporation and assigns a BC Corporation Number. At incorporation, the business is officially registered in BC.

Step 5: Register for tax and social security

Once incorporated, register with the CRA for a Business Number (BN), and open program accounts for corporate income tax (T2 account), GST/HST (if applicable), and payroll deductions. In many cases, these registrations can be triggered automatically as part of the incorporation process. You must also register with WorkSafeBC for workers’ compensation if hiring employees. Province of British Columbia. For provincial sales tax (PST), if your business sells taxable goods, register with BC’s Provincial Sales Tax system.

Step 6: Open a corporate bank account

To operate financially, you will need a Canadian bank account. Most banks require:

• Certificate of Incorporation
• Articles of Incorporation
• Resolution of the board authorizing the opening of the account
• Identification documents for directors/controllers
• Proof of address
• Good credit or banking reference (in some cases)

Timelines vary—usually a few days to one week. Most banks require a local Canadian bank branch. Establishing banking from abroad can be more difficult and often requires an in-person visit or the use of a local representative.

Step 7: Set up payroll and employment compliance

To legally hire employees in BC, you must:

• Enroll as an employer with CRA for payroll source deductions (CPP, EI, income tax)
• Submit withholding and remittances on scheduled intervals (monthly or semi-monthly)
• Register with WorkSafeBC to obtain coverage and pay premiums
• Draft compliant employment contracts per BC employment standards (hours, paid leave, overtime, termination)
• Contribute to statutory benefits (CPP, EI) and withhold the employee portion
• Maintain records, provide pay stubs, issue T4's annually

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Post-registration obligations

After incorporation, your BC corporation must maintain compliance via:

• Tax and financial reporting: File a T2 corporate income tax return annually with CRA. File Goods and Services Tax/Harmonized Sales Tax (GST/HST) returns periodically.
• Corporate registers: Maintain and update records of directors, shareholders, and beneficial owners. Report changes to BC Registries via Corporate Online (e.g., director changes) in required timeframes.
• Compliance tracking: Use a compliance calendar or service to monitor obligations such as annual reports, remittance deadlines, and tax filings to avoid penalties.
• Licenses and renewals: Depending on your business, you may require local municipal business licenses, industry-specific permits, or professional registrations. Renew as required.
• Recordkeeping: Retain accounting, HR, payroll, and transaction records for at least 6 years (per CRA guidelines) and ensure documents are audit-ready.
• Employment law compliance: Stay aligned with BC provincial labor laws, minimum wage, statutory leaves, health and safety, and data privacy rules.

Taxes and financial considerations

• Corporate income tax: The federal tax rate is 15% for general corporations; for Canadian-Controlled Private Corporations (CCPCs), the rate is reduced to 9% on qualifying active business income under the Small Business Deduction. In BC, the provincial rate is 2 % on small business income and 12 % on general income.
• VAT/GST and PST: The federal GST is 5%. BC’s PST is 7% on certain goods and services; this must be handled separately.
• Payroll/social contributions: Employers contribute to the Canada Pension Plan (CPP) and Employment Insurance (EI), and withhold employee contributions. WorkSafeBC (the mandatory provincial workers’ compensation insurance program that provides coverage for workplace injuries and occupational health and safety in British Columbia) premiums depend on industry class.
• Accounting standards: British Columbia companies must also prepare audited or reviewed financial statements (depending on size) in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP) or International Financial Reporting Standards (IFRS).

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into Canada—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Canada (BC)?
Typically 1–3 weeks, depending on the completeness of documents and the speed of name reservation and provincial approvals.

What is the minimum capital required?
There is no statutory minimum capital requirement; you can issue shares with a nominal or no par value.

Can foreign companies own 100 % of an entity in Canada?
Yes. Foreign ownership is allowed. However, at the provincial BC level, at least 25% of directors must be resident Canadians unless an exemption is granted.

Do I need a local director or representative?
Yes. Under BC law, a minimum of 25 % of the board must be Canadian residents. If that threshold doesn’t result in a whole number, round up to the next integer. An exemption may be sought in some cases.

How much does it cost to register an entity?
Government filing and name reservation fees are generally in the range of CAD 350–500. Professional and legal fees vary depending on complexity. Use our Entity Setup Calculator to estimate your cost.

Can I hire employees before the entity is fully registered?
Typically no. In most cases, you must be registered with CRA (payroll account), WorkSafeBC, and have a legal entity before formally employing staff. However, Deel’s EOR service allows you to hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Canada?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.
If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.