Advantages to Incorporate in Ontario

Incorporating a business in Ontario, Canada as a non-resident has some unique advantages, but also a few restrictions to be aware of. Below is a comprehensive list of all the advantages—including both general Canadian benefits and those specific to Ontario—for a non-resident entrepreneur or investor.

General Advantages of Incorporating in Canada, Ontario
As a Non-Resident

These advantages apply across all provinces:

Access to the Canadian Market

Operate legally across Canada and access a stable, developed economy.
Benefit from Canada’s global trade ties and open business environment.

International Trade Agreements

As a Canadian corporation, your company can take advantage of:

CUSMA/USMCA (U.S.–Mexico–Canada)
CETA (EU)
CPTPP (Asia-Pacific)
Numerous other FTAs (Free Trade Agreements)

Limited Liability Protection

Personal assets are protected; liability is generally limited to the corporation’s assets.

Credibility and Reputation

A Canadian business enjoys global trust and legitimacy, especially helpful in partnerships and investor relations.

Access to Canadian Financial Services

A Canadian-incorporated company can open a business bank account and access capital from Canadian financial institutions (though personal presence is often required).

Business Immigration Pathways

Incorporating a business may support eligibility for Canadian entrepreneur/investor immigration programs.

Intellectual Property & Legal Protections

Canada offers strong protections for IP and a well-respected legal system.

Tax Planning Opportunities

With the right structure, you may benefit from tax advantages and deferral strategies under Canadian tax law.

Advantages Specific to Ontario

Ontario is Canada’s most populous and economically powerful province, and here’s what makes it attractive:

Largest Consumer & Business Market in Canada

Ontario houses over 40% of Canada’s population and GDP.
Access to major urban centers (Toronto, Ottawa) and thriving business ecosystems.

Proximity to U.S. Markets

Ontario borders key U.S. states (e.g., New York, Michigan) and is a hub for cross-border trade.
Strategic location for logistics, warehousing, import/export businesses.

Robust Infrastructure

Excellent transportation networks: ports, highways, rail, and airports.
Toronto is a global financial center.

World-Class Talent Pool

Ontario is home to top universities and colleges (University of Toronto, Waterloo, etc.).
Diverse, skilled labor force with strength in:

Tech
Finance
Healthcare
Advanced manufacturing

Strong Startup and Tech Ecosystem

Major innovation hubs like Toronto-Waterloo corridor (sometimes called “Silicon Valley North”).
Access to incubators (e.g., MaRS, Communitech) and VC investment.

Government Incentives and Grants

Access to provincial and federal funding for:

Research & Development (R&D)
Hiring and training
Export support
Clean tech and innovation

Bilingual Services

While English is predominant, official bilingualism (with French) is supported in many government and legal contexts.

Federal & Provincial Tax Incentives

Ontario offers targeted tax credits like:

Ontario Innovation Tax Credit (OITC)
Ontario Research and Development Tax Credit
Ontario Interactive Digital Media Tax Credit

Important Considerations for Non-Residents

Not disadvantages, but key to planning your incorporation:

Residency Requirement for Directors

Ontario requires at least 25% of directors of a corporation to be Canadian residents.
If you want full foreign control, this is a limitation (unlike Nova Scotia or New Brunswick).
Workaround: Incorporate federally (no residency requirement) and register to operate in Ontario.

Registered Ontario Office Address Required

You must have a physical address in Ontario (can use our own services for this).

Bank Account Setup

Most Canadian banks require a director or officer to be physically present to open a business account.

Extra-Provincial Operations

If incorporated provincially in Ontario, you’ll need extra-provincial registration to operate in other provinces.

Best Use Cases for Non-Residents Incorporating in Ontario

• Tech startups and innovation-focused companies
• Businesses targeting Ontario’s massive consumer base
• Cross-border trade with the U.S.
• Companies seeking institutional funding or partnerships
• Immigration-linked entrepreneurship (via Owner-Operator LMIA or OINP Entrepreneur Stream)