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Obtain Extra-Provincial License for Corporations in Canada

Obtain Extra-Provincial License for Corporations in Canada

The incorporation of a company in Canada implies several steps and respecting various laws. One of the most interesting facts about starting a business in Canada is that a company can be registered at a federal, or provincial or territorial level. This can lead to obtaining various licenses, among which the extra-provincial permit.

The extra-provincial license falls under the provisions of the Extra-Provincial Corporations Act and our local agents explain below how to obtain it. We can help those opening companies in Canada and obtaining the extra-provincial license for them.

The Canadian extra-provincial license under the law

The extra-provincial license must be obtained by corporations registered outside Canada or which were registered in Canada, exited it and want to operate in the country again. A corporation seeking to obtain an extra-provincial license in Canada must comply with several requirements and is subject to filing various documents with the Trade Register.

Given the fact that Canada is a rather complex country in terms of company registration, do not hesitate to discuss your business options and the licensing requirements for them with our local consultants.

Requirements for obtaining an extra-provincial license for a Canadian corporation

The requisites for obtaining a corporation extra-provincial license are not many, the company being requested to have a registered address in the Canadian province it will operate and appointing a representative in the same province. Also, the company must use the trading name it was issued in its home country (the same requirement applies when setting up a branch office in Canada).

It is important to pay attention to the trading name requirements, considering that in Canada, companies can obtain a business number without going through the company name reservation procedure.

Our company formation specialists in Canada can explain the legal requirements related to setting up a business here.

Documents needed to obtain an extra-provincial license in Canada

In order to obtain an extra-provincial license for a corporation in Canada, the following documents are required:

  1. the application form called Application for Extra-Provincial License in two copies;
  2. the Appointment for Agent of Service form which must also be submitted in duplicate copies;
  3. a name search report, also known as the NUANS search report issued by the Trade Register in the province the corporation will operate in;
  4. the Certificate of Registration (Certificate of Status, according to Canadian regulations);
  5. proof of payment of the registration fee and a covering letter with the name, address and phone number of the applicant.

The Certificate of Status which must be completed when applying for an extra-provincial license for a corporation must contain the name of the company, the date of incorporation, the jurisdiction (country) it is originally registered in and the fact that the company has an ongoing economic activity.

In case the Certificate of Status cannot be obtained, a lawyer who can compile the information will be allowed to issue a legal declaration in this sense. The lawyer must have a practice authorization in the Canadian province where the company will operate.

Our company registration consultants in Canada can offer more information on this matter.

Other requirements for obtaining an extra-provincial license in Canada

One of the important aspects which need to be considered when appointing the agent for service is that the position can be occupied by a natural person (who must be at least 18 years old) or a corporation. The requirement is for both the person and the company to be a resident of the province in which the service will be offered.

The company obtaining the extra-provincial license must also file an Initial Return with the local office of the Trade Register within 60 days from commencing its activities here. Any changes made in the company must also be reported within 15 days since they were made.

Why register a company in Canada?

Canada is a very prolific business destination with good economic results in the last few years. In terms of foreign investments, Canada:

  • ranked 15th at a worldwide level as a destination for Foreign Direct Investments (FDIs) in 2017;
  • in 2017, Canada’s FDI stock stood at 1,084 billion USD (11% higher than in the previous year);
  • approximately 1/3 of the FDI stock in Canada is held by the USA, the Netherlands and Luxembourg;
  • Canada ranks 22nd in the Doing Business Report issued by the World Bank in 2019.

For assistance in obtaining an extra-provincial license for a corporation, please contact our agents in Canada.