Advantages to Incorporate in Nova Scotia

Incorporating a business in Nova Scotia, Canada as a non-resident comes with a set of distinct advantages, both general to Canada and specific to Nova Scotia.

Here is s a breakdown of all the relevant advantages:

General Advantages
For Non-Residents Incorporating In Canada

Access to the Canadian Market

A registered company in Nova Scotia gives you legal access to do business in Canada.
Canada is a G7 country with a stable economy and strong consumer base.

Trade Agreements

As a Canadian company, you can benefit from Canada’s trade agreements like:

USMCA/CUSMA (formerly NAFTA)
CETA (with the EU)
CPTPP (Asia-Pacific)
Dozens of bilateral trade agreements.

Strong Legal System

Canada has a transparent, stable legal system.
Reliable contract enforcement and intellectual property (IP) protections.

Reputation & Trust

A Canadian corporation is seen as reputable and trustworthy internationally.
Helps in forming global partnerships and attracting investors.

Limited Liability

Corporations offer personal asset protection.
Directors and shareholders are generally not liable for the debts of the corporation.

Access to Canadian Banking & Financial Services

Once incorporated, you can open a Canadian business bank account (though physical presence or local representative is often required).

Immigration Opportunities

Having a Canadian company may help you qualify for business or entrepreneur immigration programs, potentially leading to permanent residency.

Tax Benefits

If structured properly, you can access Canada’s Small Business Deduction (SBD) for reduced corporate tax rates.
Possible tax deferral and planning strategies using a Canadian corporation.

Specific Advantages of Incorporating in Nova Scotia

No Canadian Residency Requirement for Directors

Nova Scotia does not require Canadian residents to be on the board of directors.
This is a major advantage over provinces like Ontario, where at least 25% of directors must be Canadian residents.

Lower Incorporation Costs

Nova Scotia’s incorporation and annual maintenance fees are competitive.
Incorporation fee (as of 2024): ~$337.90 CAD for limited company.
Annual return filing fee: ~$118.35 CAD.

100% Foreign Ownership Allowed

Foreigners can fully own the business with no local ownership requirements.

Ease of Incorporation Process

Simple incorporation process through the Nova Scotia Registry of Joint Stock Companies.
Can be done online or through service providers.
The province offers helpful resources and support for startups.

Bilingual Capability

English is the primary language, but Nova Scotia supports bilingualism (English/French), helping in dealing with federal bodies or Quebec markets.

Skilled Workforce & Education Institutions

Home to universities like Dalhousie, Saint Mary’s, and others – great sources of talent.
Strong research and innovation networks.

Government Grants & Incentives

Nova Scotia offers grants and tax credits for:

R&D
Film and digital media
Export development
Hiring and training programs

Strategic Location

Halifax is a key Atlantic seaport, making Nova Scotia ideal for businesses in:

Shipping
Logistics
Import/export

Close to the northeastern U.S. and Europe via transatlantic routes.

High Quality of Life & Low Cost of Living

This makes Nova Scotia attractive for relocating business operations or bringing in talent.
Potentially lower office and employee costs compared to Toronto or Vancouver.

Innovation & Tech Hub (Especially Halifax)

Halifax has a growing startup and tech ecosystem, with support from accelerators like Volta Labs.
Opportunities for networking, mentorship, and funding.