REGISTRATION OF EPC COMPANY IN ONTARIO
Ontario region is suitable to open a branch of a foreign Limited Liability Company and register a corporate account with a bank in Canada. This is the most developed Canadian jurisdiction, in which more than half of Canada's financial and industrial corporations are registered.
Law&Trust International proposes to register a company in Ontario of an EPC type — an extra-provincial corporation — for non-residents of Canada.
HOW TO establish a COMPANY
Canada is a country with a preferential taxation system, but many non-residents are interested in offshore zones of Ontario and its other provinces. Contact Law&Trust for detailed advice on business registration.
If a company is registered with an organizational form of EPC, a non-Canadian company receives an additional license at the provincial level of Ontario. The document gives the right to open a bank account, register an office and conduct business with other Canadian jurisdictions, as well as with counterparties from abroad.
In order for an EPC to be successfully registered in Ontario, a foreign corporation must have a resident registration agent in the jurisdiction.
Extra-provincial form of business does not entitle a company to be registered as a Canadian legal entity. In this regard, a corporation with a non-resident founder does not have tax liabilities in Canada in the case of doing business outside the country.
Why is it profitable to register an EPC in Ontario
Facts in favour of registering an extra-provincial corporation:
- offshore and onshore companies registered in any of the regions can obtain a license in Ontario;
- status of EPC in Ontario positively influences the image of non-Canadian companies;
- absence of requirements for residency of directors, officers and shareholders of EPC in the jurisdiction;
- opportunity to open a bank account, office and conduct business in Ontario;
- registration of an offshore company in Ontario to conduct activities outside the country deprives the founder of the need to pay taxes to the treasury of the state;
- there is no need to file tax returns if a corporation conducts business outside of Canada;
- all operating costs in Ontario (advertising, wages, office rent, etc.) are deducted from the taxable income received in Ontario;
- there is no need to hold annual meetings.
OFFSHORE in ONTARIO: INCOME TAX FOR CORPORATIONS
EPC is required to pay income tax that applies to all profits earned in the country.
All operating costs, including staff salaries, remuneration paid to directors, contract payments to individual entrepreneurs, partnerships, companies and corporations, advertising costs, etc., are deductible from taxable income on profits for registered EPC business in Ontario.
Income tax is paid after 2 months from the end of a fiscal year.
Requirements for filing a tax return
Registration of EPC in Ontario does not exempt from the need to file financial statements. A company must annually submit corporate tax return to the authorized bodies of Canada, if it operates within the state. Reporting must be submitted within 6 months after the end of a fiscal year.
Our company offers accounting services. Clients will be able to comply with the requirements of Canadian legislation on filing tax returns, timely pay corporate income tax and maintain their company's rating.
What name to choose for registering EPC in Ontario
Officially registered name of a non-Canadian company must be unique. Otherwise, a company can not be registered in Ontario and can not obtain the status of EPC.
Words that can be misleading about business activities and include such words as, for example, bank, trust, insurance, stock exchange, can not be used for naming.