When incorporating a company in Canada, it used to be a requirement to have at least 1 Canadian resident as a directors of the company. This made it difficult for some clients who did not know anyone in Canada to establish companies here.
British Columbia was one of the few jurisdictions which did not have any residency requirements for directors. Thus, when our clients needed to establish a company in Canada, we would often to incorporate a BC company even if they were doing business in Ontario or other provinces so that they would not need to find a Canadian director for their company.
In 2021, Ontario and Alberta both removed their residence requirements for companies. Now, Ontario, Quebec, British Columbia and Alberta (which have about 87% of Canada’s population) no longer have residence requirements for directors, making it easier to set up Canadian subsidiaries wherever they are doing business. If you are interested in setting up or purchasing a business anywhere in Canada, book a consultation with us so we can advise you of your options.