Most foreign entrepreneurs looking to expand their existing business, or start a new one, have not seriously considered Canada. They should. As Prime Minister Mark Carney put it at the World Economic Forum in Davos in January 2026: “Canada has what the world wants.” Canada ranks 2nd in the G20 for business conditions through 2029 and has sat in the top 10 consistently for the past five years (Economist Intelligence Unit, August 2025). Its tax treatment on new business investment – at 13.0% – is the lowest in the G7, well below the OECD average and significantly lower than the United States (Finance Canada, Fall Economic Statement 2024). Fifteen active free trade agreements give businesses based in Canada preferential access to markets representing 61% of the global economy (Global Affairs Canada, May 2025). Add one of the world’s most educated workforces – 65% of Canadians aged 25 to 64 hold tertiary qualifications, the highest rate in the OECD (OECD, Education at a Glance, September 2025) – a banking system ranked among the soundest anywhere, and a transparent legal environment. Foreign direct investment into Canada reached its second-largest stock-to-GDP ratio among G20 countries in 2024 (UNCTAD, September 2025). Many entrepreneurs undervalue Canada’s combination of market access, low effective tax rates on new investment, and a skilled labour pool.
The right path into Canada will depend on your starting point – whether you already have an operating business, whether you plan to relocate, and what your long-term goals are. This guide breaks down the three main routes available to non-Canadians.
For non-Canadians, there are three primary ways to start or expand a business in Canada: (1) establishing a business in Canada – whether expanding an existing foreign business or launching a new venture – without necessarily relocating; (2) immigrating to Canada as a business entrepreneur; or (3) building a business as an international student already in Canada. Each stream has its own requirements, and choosing the right one will depend on your specific circumstances.
Stream 1: Establishing a Business in Canada
Whether you are expanding an established foreign business into Canada or starting a new venture from abroad, the first and most important decision is how to structure your Canadian presence. Will you operate directly in Canada as a branch of your existing business, or create a separate Canadian legal entity? The right choice will depend on your operational goals, liability tolerance, tax considerations, and the nature of your Canadian activities.
The Branch Office. The simplest way to establish a Canadian presence is to operate your existing foreign corporation directly in Canada as a branch. A branch is not a separate legal entity – it runs under your foreign parent’s name and structure. To operate in a given province, your corporation must register extra-provincially there. There is no single national registration covering all provinces, so operating across multiple provinces means registering in each one. Branch registration is relatively straightforward and inexpensive, and there are no Canadian-resident director requirements for the foreign parent itself. The catch is liability: because a branch has no separate legal existence, your foreign parent is directly on the hook for any debts or obligations incurred in Canada.
The Canadian Subsidiary. For most foreign businesses making a serious commitment to the Canadian market, incorporating a wholly-owned Canadian subsidiary is the better route. This creates a legally separate Canadian entity – meaning that, as a general rule, claims against the subsidiary do not reach the foreign parent. You can incorporate federally under the Canada Business Corporations Act (CBCA), which gives the corporation the right to operate across Canada, or provincially under the relevant provincial statute. Under the CBCA, a percentage of directors must be Canadian residents; the precise test depends on board size (Canada Business Corporations Act, RSC 1985, c C-44, s 105). Several provinces – including British Columbia, Alberta, Quebec, and Ontario – have removed residency requirements entirely, making them practical choices for non-Canadians. Check the governing statute before incorporating. Bear in mind that even a federally incorporated subsidiary may still need to register extra-provincially in provinces where it carries on business.
The Unlimited Liability Company (ULC). Particularly relevant for US businesses, the ULC is available in British Columbia, Alberta, and Nova Scotia. Taxed as a corporation in Canada, a ULC can be treated as a flow-through entity for US tax purposes under the “check-the-box” rules – a potentially significant cross-border planning advantage. The trade-off is shareholder liability: ULC shareholders do not get the protection that comes with a standard corporation. This is a structure that warrants input from both Canadian and US tax counsel before you commit.
The Partnership or Joint Venture. If your Canadian plans involve working with an existing Canadian business, a partnership or joint venture may be the right fit. Partnerships are not taxable entities – income and losses flow through directly to the partners, which can work well in early years when losses are expected. A joint venture is a creature of contract and offers flexibility, but creates no distinct legal entity. Both structures carry real legal and tax consequences, and the choice between them is worth getting right from the start.
One point worth emphasising across all of these structures: you do not need to live in Canada to own and operate a Canadian business. Non-resident entrepreneurs have successfully built technology companies, professional services firms, and product businesses using Canadian entities – serving Canadian customers and accessing North American markets entirely from abroad. A Canadian incorporation gives you a credible, tax-efficient market presence without requiring a permanent move.
Stream 2: Starting a Business by Immigrating to Canada
Immigration is the second pathway through which non-Canadians can start a business in Canada. By applying to enter Canada as a business immigrant, you can establish and actively manage your business while living in the country – and in many cases, obtain permanent residence in the process. Canada’s business immigration landscape changed significantly at the end of 2025, and anyone considering this route should seek up-to-date legal advice.
Historically, the Canadian government operated two primary business immigration programs for entrepreneurs: the Start-up Visa (SUV) Program and the Self-Employed Persons Program. As of December 31, 2025, the Start-up Visa Program is closed to new applicants following significant policy changes by Immigration, Refugees and Citizenship Canada (IRCC). A new, more selective entrepreneur pilot program launched in 2026. The Self-Employed Persons Program remains available for individuals with relevant experience in cultural activities or athletics who intend to be self-employed in Canada and can demonstrate the ability to make a significant contribution to those sectors. It is not a general business immigration stream – applicants must meet a points-based assessment covering experience, education, age, language proficiency, and adaptability, and processing times have historically been lengthy.
The Start-Up Visa Program (Now Closed)
Launched in 2013, the Start-up Visa Program was designed to attract innovative entrepreneurs capable of building globally competitive businesses. The cornerstone of a successful application was a letter of support from a designated Canadian organization – a venture capital fund, an angel investor group, or a business incubator – each of which had its own minimum investment or acceptance threshold. There was no minimum net worth requirement in the program’s later years, and it was broadly accessible across sectors including technology, life sciences, and clean energy. It was widely regarded as one of the world’s most entrepreneur-friendly immigration pathways. Its closure on December 31, 2025 marked a significant shift in Canada’s approach to business immigration.
The New Entrepreneur Pilot Program (2026)
In place of the Start-Up Visa Program, IRCC launched a new and more selective entrepreneur pilot program in 2026. The program features lower intake caps and stricter eligibility requirements than its predecessor. It is expected to prioritize applicants who can demonstrate significant economic benefit to Canada, with a particular emphasis on innovation, technology, and scalable business models. Unlike the SUV, which was broadly accessible to a wide range of entrepreneurs, the new pilot is designed to attract a smaller number of high-impact applicants.
Because IRCC’s new pilot program is still evolving and intake caps are expected to be tight, early preparation is essential. A Canadian immigration lawyer can help you assess your eligibility, structure your business and documentation effectively, and ensure you are ready to move quickly when intake opens. Given the program’s lower caps, competition for spots is expected to be significant.
Stream 3: International Students Pursuing Business Ventures in Canada
Not every non-Canadian building a business in Canada is starting from the outside. Canada hosts one of the largest international student populations in the world, and many arrive with serious entrepreneurial ambitions. If you are currently studying here on a study permit, you can be self-employed – but the rules around how and when you can work are strict, and the consequences of getting them wrong are serious. Off-campus work including self-employment is generally limited to 24 hours per week during academic terms. Exceed that limit and you risk losing your student status, being barred from future study or work permits, and potentially having to leave Canada. If you plan to build a business while studying, track your hours carefully and get legal advice before you act.
After graduating from an eligible designated learning institution, many international students can apply for a Post-Graduation Work Permit (PGWP), which allows you to work in Canada – including as a self-employed person or as the founder of your own business. PGWP duration depends on your program: a program longer than two years earns a three-year PGWP; graduates of master’s degree programs of at least eight months are also eligible for a three-year PGWP regardless of the program’s specific length (a rule in effect since February 15, 2024); shorter programs produce shorter permits, with a minimum of eight months. The PGWP is an open work permit, meaning it is not tied to any single employer, giving you genuine flexibility to pursue entrepreneurial ventures. However, there is a critical planning consideration that many international student entrepreneurs overlook: self-employment on an open work permit is generally not recommended if permanent residence is your goal. To qualify under the Canadian Experience Class (CEC) – one of the primary Express Entry routes to permanent residence – you need at least 1,560 hours (one year) of skilled Canadian work experience at TEER 0, 1, 2, or 3 within the past three years. A significant range of experience is excluded from that count and cannot be used toward CEC eligibility: self-employment in Canada, work performed while studying full time in Canada (even if you held a work permit at the time), unpaid work or volunteer work, unauthorized work, and work performed after a loss of status. Building a business while inadvertently undermining your PR pathway is a real and common risk, and early legal advice is essential to avoid it.
For international student entrepreneurs who want to both build a business and achieve permanent residence in Canada, the path forward requires deliberate planning. Several options are worth exploring. Provincial Nominee Programs (PNPs) include entrepreneur-specific streams in a number of provinces that may credit business ownership and management experience toward a provincial nomination. The new 2026 federal entrepreneur pilot program described in Stream 2 may also be a viable route for graduating entrepreneurs who can demonstrate an innovative, scalable business concept with strong economic potential. For those whose businesses generate employment and Canadian economic activity, there may also be pathways through employer-based sponsorship or other work permit categories that better preserve PR eligibility. The right strategy will depend on the nature of your business, your field of study, your immigration history, and your long-term goals in Canada. A qualified Canadian immigration and business lawyer can help you design an approach that protects both your entrepreneurial ambitions and your permanent residence pathway – and the earlier you seek that advice, the more options will be available to you.
Conclusion
Canada remains one of the world’s most attractive destinations for foreign entrepreneurs – offering a stable economy, a low business tax burden, an educated workforce, and unparalleled access to global markets. Whether you are looking to expand an existing foreign business into Canada, launch a Canadian venture without relocating, immigrate as a business entrepreneur, or build a business while studying here, there is a pathway available to you. Canada’s business and immigration landscape is complex and evolving rapidly – particularly following the closure of the Start-Up Visa Program and the launch of the new 2026 entrepreneur pilot. Other immigration pathways may also be available depending on your specific circumstances, and the right advice early can make all the difference. Contact our business lawyers today to discuss your situation and identify the best path forward for your Canadian business ambitions.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for professional legal counsel. Laws and regulations may change over time, and the application of any legal principle will depend on the specific facts and circumstances of each matter. Readers are encouraged to consult with a qualified lawyer before acting on any information contained in this article.
