I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

Each province in Canada has their own residency requirements for directors of a corporation. If you don’t meet these requirements in a particular province of Canada, you cannot incorporate in that province. Note that a corporation requires a minimum of one (1) director.

The list below outlines each province’s requirements for directors:

• Ontario: Majority of directors (51%) must be residents of Canada. If there are only two directors, then one must be a Canadian resident.

• Federal: At least 25% of the directors must be residents of Canada

• British Columbia: Directors are not required to be residents of Canada

• Alberta: At least 25% of the directors must be residents of Canada.

• New Brunswick: Directors are not required to be residents of Canada.

• Manitoba: Majority of directors (51%) must be residents of Canada. If there are only two directors, then one must be a Canadian resident.

• Nova Scotia: Directors are not required to be residents of Canada

• Prince Edward Island: Directors are not required to be residents of Canada

• Saskatchewan: Majority of directors (51%) must be residents of Canada, and at least one director must be a resident of Saskatchewan.

• Quebec: Directors are not required to be residents of Canada.

• Yukon: Directors are not required to be residents of Canada.

• Northwest Territory: Directors are not required to be residents of Canada.

• Newfoundland and Labrador: Majority of directors (51%) must be residents of Canada. If there are only two directors, then one must be a Canadian resident.

• Nunavut: Directors are not required to be residents of Canada.

ABOUT THE AUTHOR

ALLAN MADAN

CA.CPA.CGA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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