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Branch Tax on any non-resident corporation carrying on business in Canada

in Canada the Canada Federal Income Tax Act ITA imposes a “branch tax” on any non-resident corporation carrying on business in Canada. This tax is meant to be a proxy for Canadian non-resident withholding tax on dividends paid by a Canadian subsidiary to its non-resident parent corporation. In the absence of the branch tax, a Canadian branch would be a tax-preferred alternative to a Canadian subsidiary because income earned through the subsidiary would be subject to both tax on business income and tax on dividends distributed to the non-resident shareholder. In contrast, income earned through the branch would be subject only to business income tax. As a result, a 25 percent branch tax would be levied on the non-resident’s Canadian source business profits subject to certain adjustments. This 25 percent rate is intended to match the 25 percent withholding tax rate under the ITA that is imposed on dividends paid to the non-resident shareholder.

Where the rate on dividends paid to a non-resident is reduced by treaty, the branch tax rate is typically correspondingly reduced. A treaty may also provide additional relief from branch tax. For example, the Canada-U.S. treaty provides that the first C$500,000 of after-tax profits is exempt from branch tax.

Canada Company registration for Non-Canadian residents and foreign companies wishing to operate in Canada

With a global clientele, Canadian expertise and a strong national presence, Ecompanies Canada is an independent Canadian firm that offers international clients comprehensive industry knowledge and insights into what it takes to successfully do business in Canada.

Ecompanies Canada provides Canada corporate registry services to foreign companies and global entrepreneurs from around the world.

We Offer

Canada Company Registration Services for Non-Canadian residents

Ecompanies Canada offers fast & easy Canada online incorporation and business registration services to Non-Canadian Residents interested in doing business in Canada. At Ecompanies Canada we help you step-by-step and take care of the entire business registration process from start to finish. Incorporating a business with us is fast, easy and takes just minutes.

Canada Incorporation Service Fees:

$2200 (All Inclusive).

Our Service Includes:

  • Canada Name Search Report
  • Canada Registered Agent Service
  • Canada Government Fees
  • Taxes
  • Ecompanies Service Fees
  • Company ByLaws
  • Company Minute Book

Learn more:
https://www.ecompaniescanada.com/incorporation-for-non-canadian-residents/

 

Register a foreign company in Canada

Ecompanies Canada offers fast & easy Canada online incorporation and business registration services to foreign companies interested in doing business in Canada. At Ecompanies Canada we help you step-by-step and take care of the entire business registration process from start to finish. Incorporating a business with us is fast, easy and takes just minutes.

Canada Incorporation Service Fees:
$2200

Our Service Includes:

Canada Name Search Report
Canada Registered Agent Service
Canada Government Fees
Ecompanies Service Fees
Company ByLaws
Company Minute Book

Learn more
https://www.ecompaniescanada.com/incorporation-service-foreign-companies-canada/

 

Canada Registered Agent Services

Canada Registered Agent services for domestic corporations, extra-provincial corporations and foreign corporations in Canada. A registered agent acts as a registered address for corporations in the province or provinces of incorporation or extraprovincial registration. The registered agent provides a registered address for the receipt of service of government filings and acts as a local contact for government agencies. The registered agent forwards any such documents and correspondence to the corporation.

Ecompanies Canada offers Registered Agent service for companies anywhere in Canada, for only $1200 x year.

When you use our Canada registered agent services:

  • We become registered and records offices of your corporation
  • We send notice to the addresses you provided to us as your contact information if the registered office is served with court action, or any other provincial or federal government requirements.
  • We date stamp all notices which are delivered to the registered office.

Learn More
https://www.ecompaniescanada.com/registered-agent-services/

 

Canada Nominee Passive Services

Resident Director Services in Canada. When you’re setting up a new business or a subsidiary in Canada (Alberta, Ontario, Saskatchewan, Newfoundland and Labrador, Manitoba and Federal Corporations, Government regulations require you to appoint a resident director who lives in the province of registration. This can be challenging when you’re a foreign company or investor with a few local business contacts in Canada.

If your company has difficulties finding a resident director, Ecompanies Canada offers professional, passive nominee director services in Canada. Using Ecompanies Canada as your passive nominee director increases:

  • the probability of timely corporate bank account approval
  • employee visa approvals
  • specific Government licenses;

Ecompanies Canada, passive resident director appointee will neither be a corporate bank account signatory nor play an active role in our Client’s business. Ecompanies Canada officers will merely be the resident director of the company in order to fulfill the local statutory requirements.

Learn More
https://www.ecompaniescanada.com/resident-director-services/

 

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