How to open a foreign company branch in Canada

Start with the right question

What does opening a Canadian branch actually involve?

A foreign company can establish a Canadian operation, subject to the applicable registration, investment and licensing requirements. The practical plan needs to address the business and the people who will run it.

Before signing a lease or committing to a launch date, establish what the Canadian operation will do, who needs to be physically present and which immigration route could support those duties.

Should you open a branch or a subsidiary?

People often use “branch” to mean any overseas office. Legally, the structure matters. A corporate lawyer and a cross-border accountant can help compare the options for your business.

Neither structure gives an owner or employee permission to work in Canada. Choose the structure for the commercial, legal and tax needs of the business, alongside the immigration assessment.

Further reading: Blakes’ guide to Canadian business entities and branch offices.

Six steps to plan your Canadian operation

1. Define the Canadian business. Set out the products or services, target customers, location, staffing and reason for expanding. Build a budget around actual operating needs.
2. Assess who needs to work in Canada. Identify each person’s citizenship, current role, employment history and proposed Canadian duties. Review immigration feasibility before making commitments that depend on their arrival.
3. Choose the structure and province. Compare a branch with a subsidiary. Confirm the relevant corporate requirements, director rules and any foreign investment review obligations with your corporate adviser.
4. Complete the registrations and licences. A foreign corporation must consider registration wherever it carries on business. Check provincial, territorial, municipal and industry requirements; one registration does not necessarily cover every location.
5. Arrange tax accounts and operational support. Review the business number, corporation tax, GST/HST and payroll accounts that apply. CRA provides a non-resident registration route. Arrange banking, insurance, bookkeeping and employment support for the operation.
6. Build an evidence-based launch plan. Bring the ownership records, funding, contracts, staffing and proposed work into one consistent plan. Align the launch timetable with any required immigration approval and ongoing compliance duties.

Registration guidance: provincial and territorial requirements · CRA registration for non-resident businesses.

Which work permit options should you consider?

The answer depends on the business, the individual and the proposed work. There is no automatic work permit attached to a Canadian company registration.

Intra-company transfers: check the multinational requirement

Under the general ICT route for establishing a new Canadian enterprise (C61), the foreign company must already have revenue-generating business operations in at least two countries before establishing the Canadian enterprise. A company operating only in its home country cannot use that route to make Canada its first foreign operation.

The individual generally needs current employment abroad and at least one continuous year of full-time work in a similar executive, managerial or specialized-knowledge role during the previous three years. The businesses must have a qualifying relationship, and the proposed operation and assignment must meet the category’s requirements.

IRCC’s general ICT rules · Our ICT assessment services.

Trade agreements and other work permits

An applicable free trade agreement may provide a separate route, depending on nationality and the agreement’s conditions. Review the relevant category before assuming the general ICT rules apply.

Some business owners may be considered under C11 for a temporary purpose. Current guidance requires control of at least 51% of the business, significant benefit to Canada, a credible temporary stay and adequate personal and business funds. This is an individual assessment, not a general permit for buying or opening a company.

Where an exemption does not apply, an employer may need an LMIA before the worker applies for an employer-specific permit. Explore our LMIA-exempt work permit guide and LMIA services.

Official guidance: business people and trade agreements · C11 business owners · employer-specific work permits.

What should you bring to an initial assessment?

A clear business summary helps identify the relevant route and the gaps to address. Start with these three groups of information:

• The existing businessOwnership chart, countries of operation, trading history, financial position and evidence of what the business actually does.
• The Canadian operationProposed structure, location, customers, funding, staffing, operating costs and realistic launch timetable.
• The people movingCitizenship, immigration history, employment dates, current responsibilities, proposed Canadian duties and intended length of stay.

This is a consultation starting point. The application evidence depends on the route selected and the facts of your case.