Starting a business in Canada as a foreigner: FAQ Draft

Many people ask whether they can start a business in Canada from abroad, or after arriving without permanent residence. These answers are general information drawn from official sources, not immigration, legal or tax advice. Wealth Theory prepares business plans and works alongside whichever immigration consultant or lawyer you choose.

In a video, Hasan Javaran of Wealth Theory answers some of these questions: watch on YouTube.

Can a foreigner start a business in Canada?

In general, yes. Government of Canada guidance on starting a business does not list citizenship or permanent residence among its steps. Some corporate laws do have director residency rules. A federal corporation under the Canada Business Corporations Act must have at least 25% resident Canadian directors, or at least one if it has fewer than four directors (section 105(3), current to October 19, 2026). A company incorporated under BC’s Business Corporations Act has no residency requirement for directors (section 124 sets the qualifications, which are about age, capacity, bankruptcy and certain convictions). Provincial rules differ, so check the statute you plan to use. A non-Canadian who acquires control of a Canadian business, or starts a new unrelated one, is also subject to the Investment Canada Act. Running the business day to day from inside Canada is a different matter, because you need permission to work.

Does owning a business give me status in Canada?

No. Owning a business and having the right to work or live in Canada are separate questions. Business owners who want to work in their business generally need a work permit or another authorization. See IRCC’s information on working in Canada. A licensed immigration consultant or lawyer can tell you which one fits your situation.

What immigration options connect to starting a business?

• Provincial entrepreneur streams. These are the main route. BC runs Entrepreneur Immigration (Base and Regional streams). Alberta, Nova Scotia, New Brunswick and Manitoba also run entrepreneur streams. Each program’s status and rules change, so check its official page; as of November 8, 2026 these four were listed as open.
• Federal Start-up Visa. IRCC lists it as paused. See Start-up Visa and our status note.
• Temporary work permits for business owners. IRCC’s operational instructions for officers describe a work permit for entrepreneurs who want only temporary residence (code C11). It requires at least 51% ownership, normally allows up to 18 months, and is not a route to permanent residence (IRCC, C11, page dated May 27, 2025). Intra-company transferees, who work for a multinational enterprise, have separate codes (C61, C62, C63).

Some programs have since closed. Saskatchewan permanently closed its Entrepreneur and Farm pathways on March 27, 2025 (SINP). Ontario’s nominee program now describes its Ontario Workforce Priority stream as the open stream and says all other streams are closed (Ontario, OINP, updated October 27, 2026).

Last reviewed: 2026-11-08.

Which business structure should I choose?

The main options are a sole proprietorship, a partnership and a corporation. A corporation can be incorporated federally through Corporations Canada or in a province, for example through BC Registries. A corporation is a separate legal entity, which affects liability and tax. Speak to an accountant and a lawyer before choosing.

What do I need to register?

1. A business name or incorporation, federally or provincially.
2. A CRA business number, and program accounts such as GST/HST and payroll as needed.
3. Provincial registrations, for example PST in BC. In BC, businesses located in the province that sell or lease taxable goods, software or services must register to collect PST, online through eTaxBC (Province of BC).
4. Municipal business licences and any industry-specific permits.
5. Workers’ compensation registration. In BC, WorkSafeBC says most businesses are required by law to have coverage. Other provinces have their own boards, so check the one where you operate.

Should I buy an existing business or start a new one?

Buying an established business is generally faster to revenue and brings customers, staff and a location. Starting new gives more control and a lower purchase cost. Immigration programs treat each differently, so check the program guide before deciding. Factors include your background, where the business will be, how much you want to invest and whether an immigration pathway is involved. Read our practical guide to buying a business in Vancouver and BC.

How do I choose a business idea?

Consider two kinds of factors.

• Personal: your skills and experience, your strengths and weaknesses, the time you can commit and whether you will move to the right location.
• Market: who your customers are, who you compete with, whether people will pay for the product at a price that makes a profit, and whether you can test the idea cheaply first.

If you have several ideas, a market study can compare them. See business plans and contact us.

Can I write my own business plan for immigration?

Yes. Nothing requires you to use a professional. If you do write it yourself, note that programs have different requirements. For BC PNP Entrepreneur Immigration, for instance, a business concept is scored at registration and a comprehensive business plan is required only if invited. Read the official guide closely. Our pages on the BC PNP business plan and business plans for immigration programs explain what a plan should cover. To estimate a BC score, use the points calculator.

Questions? Contact us or book a consultation.