Mon–Fri: 8:30 AM – 4:30 PM
Stoney Creek, ON L8G 1C1
Expanding a U.S. company into Canada? Set up the entity, business number and CRA accounts in the right order
We map what your Canadian activity actually requires, from branch or subsidiary and provincial registration to the CRA business number and the corporate-tax, GST/HST and payroll accounts. We coordinate the legal steps with your counsel and set up the books and filing calendar around them.
or call (905) 561-1278
Your file is reviewed by Affan Khalid, CPA, CAOver 20 years of Canadian and international tax experience · 750+ Canadian business-number registrations completed · About Affan
- U.S. companies starting sales, projects, hiring or inventory in Canada
- Finance leads deciding between operating as a branch and forming a Canadian subsidiary
- U.S. businesses that need a Canadian business number and CRA accounts
Takes about a minute. We reply by email with the likely steps and what we’d need. Submitting does not commit you to an engagement.
Request a Canada setup review
A few quick questions about your plans. We’ll reply by email with the likely setup steps.
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Branch or subsidiary: what changes for tax
A Canadian incorporation and a Canadian bank account aren’t automatically required in every case. What you’ll do in Canada decides which setup fits.
Operate through the U.S. company (branch)
The U.S. company itself does business in Canada. In Ontario, a corporation incorporated outside Canada needs an extra-provincial licence and a continuing Ontario agent for service before it carries on business there; other provinces have their own registration rules. If it carries on business in Canada, it files a Canadian corporate return (T2), claiming treaty relief on Schedule 91 where applicable, even if no tax is owed. Branch profits can also attract an additional branch tax, which the treaty can reduce.
Form a Canadian subsidiary
A separate Canadian corporation owned by the U.S. company, with its own T2, accounts and directors. A federal incorporation can include the business number and corporate-tax account in the same filing. GST/HST, payroll and provincial registrations are confirmed separately.
The setup sequence
- Confirm what you’ll do in CanadaLepore & Company
- Choose branch or subsidiaryYour lawyer, with our tax input
- Provincial registration or licenceYour legal counsel
- CRA business number and program accountsLepore & Company
- Investment Canada Act notificationYour legal counsel (we flag it)
- Books and filing calendarLepore & Company
- Confirm what you’ll do in Canada: sales, staff, site work, inventory, office. Under the Canada–U.S. treaty, these facts decide whether there is a permanent establishment and whether Canada can tax the profits.
- Choose the structure with your lawyer: branch or subsidiary. We model the tax side.
- Provincial registration or licence where you’ll operate (for example, Ontario’s extra-provincial licence for non-Canadian corporations).
- CRA business number and program accounts: corporation income tax, GST/HST, payroll and information returns as needed. Import/export accounts are now handled by the CBSA.
- Investment Canada Act notification: establishing a new Canadian business can require a notification within 30 days of starting. We flag it so your counsel can file.
- Books and filing calendar: Canadian bookkeeping, payroll, GST/HST returns and the first T2, set up before activity starts. CRA and registry timing can’t be guaranteed, so we sequence the steps to avoid rework.
What we handle and what your lawyer handles
Lepore & Company: tax structuring input, the CRA business number and accounts, GST/HST and payroll setup, bookkeeping, T2 and other filings.
Your legal counsel: incorporation or extra-provincial registration filings, agent for service, Investment Canada Act notification and contracts.
What to have ready
- What you’ll do in Canada, where and from when
- Whether you’ll hire in Canada or send U.S. staff
- Expected Canadian sales and customers
- Your U.S. entity type and ownership
- Any existing Canadian numbers or registrations
Why Lepore & Company
One coordinated contact
Registrations, withholding relief and filings for your Canadian activity are coordinated in one place, so nothing falls between advisers.
Senior CPA attention
Your file is reviewed by Affan Khalid, CPA, CA.
Case-specific work
Each application or registration is prepared on its own facts, working directly with CRA and, where needed, with your Canadian customer, payer or legal counsel.
We provide a fixed-fee quote after reviewing your information, generally following the initial call.
Lepore & Company CPA · 145 Highway 8, Stoney Creek, ON L8G 1C1 · (905) 561-1278 · Mon–Fri 8:30 AM – 4:30 PM ET
Why Affan Khalid
Affan Khalid, CPA, CA · Tax Partner & Principal
Over 20 years of Canadian and international tax experience, including senior tax roles at PwC and MNP.
Affan reviews each setup file, sequences the registrations with your counsel, and handles the CRA business-number and program-account work.
Affan has completed more than 750 Canadian business-number registrations, with a 100% successful completion record.
A business number identifies you to the CRA; it isn’t a provincial registration or an incorporation. Each registration is handled on its own facts, and past results don’t guarantee a future outcome.
“This was a big win for me as I launch my new firm, thanks to Affan’s due diligence and ability to urgently get my documents filed.”
Larry P., U.S. business owner
Questions
Do we have to form a Canadian subsidiary?
Not always. Many U.S. companies operate through the existing corporation, subject to provincial registration and Canadian tax filings. The right choice needs both legal and tax review.
Is a business number the same as permission to operate in a province?
No. A business number identifies you to the CRA. Provincial registration or licensing is a separate step.
If the treaty exempts our profits, do we still file in Canada?
Generally yes. A non-resident corporation that carries on business in Canada files a T2 and claims treaty relief on Schedule 91, even if no Canadian tax is owed.
Can we get a business number today?
We can start as soon as your information is ready, but CRA and registry timing can’t be guaranteed.
Does getting a business number mean we have to charge GST/HST?
No. The business number is an identifier; GST/HST is a separate program account that applies only if you’re required or choose to register. See GST/HST and QST registration.
What is branch tax?
If a U.S. company carries on business in Canada through a branch, its after-tax Canadian branch profits can attract an additional branch tax on top of corporate income tax. The Canada–U.S. treaty can reduce it, so it belongs in the branch-versus-subsidiary comparison.
Is there an Investment Canada Act filing?
Often. A non-Canadian that establishes a new Canadian business generally has to notify the federal government, before or within 30 days after starting. We flag it so your legal counsel can file.
Do we need a Canadian bank account?
Not in every case. Where it helps, we can introduce you to Canadian business-banking contacts. Remote account opening may be possible in some cases, but onboarding and identification decisions belong to the bank.
Do we need a Canadian address?
Not necessarily. If a Canadian mailing address would help, we offer receipt and forwarding of business mail, including CRA correspondence where appropriate. It’s a mail service only, not an office, registered office or permanent establishment, and it doesn’t by itself satisfy a bank’s or registry’s requirements.
Will our U.S. employees working in Canada need Canadian payroll?
Possibly. Pay for days worked in Canada can require Canadian withholding unless CRA approves a waiver or employer certification. See Regulation 102 payroll waivers.
Do our people need work permits?
That’s an immigration question, not a tax one. We can introduce you to an independent Canadian immigration professional; Lepore doesn’t provide immigration advice.
What does it cost?
We provide a fixed-fee quote after reviewing your information, generally following the initial call. The quote covers the setup steps that actually apply to you.
Related services
These services often come up alongside this one. Start with the review above; we’ll tell you if any of them apply.
Where your situation calls for it, we can also introduce you to Canadian business-banking contacts or an independent Canadian immigration professional, and we offer business-mail receipt and forwarding. Banks make their own onboarding decisions, Lepore doesn’t provide immigration advice, and the mail service isn’t an office or registered office.
Planning Canadian operations? Get the setup order right first.
or call (905) 561-1278
General information only. Corporate structure, provincial registration and Canadian tax obligations depend on your facts. Legal formation steps should be reviewed with your legal counsel. Submitting an inquiry does not create a professional-client relationship.