On PR want to Incorporate and work with Canadian company from outside Canada

[johnnyenglish]

Hello Experts,

I have recently received my Permanent residency status but due to family emergencies, I have to travel back to home country and might have to stay there for 7 months to a year.

The company that I work for here is willing to continue working with me remotely.

I want to know if I Incorporate myself and get paid in Canadian Bank and pay canadian taxes at the end of the year, are there any complications that may arise ?

Thanks in advance for your feedback.

 

[zardoz]

Nothing to stop you having your own business, as long as you obey any federal and provincial regulations.
Obviously, this will not allow you to claim any days outside Canada as "residency days", just in case you were hoping....

 

[johnnyenglish]

Thanks Zardoz.

Yes, I am not hoping for any of the days getting counted.

All I want to make sure is I am following all the regulations and guidelines and not breaking any law which may jeopardize my return to Canada after 1 year.

 

[johnnyenglish]

Hi zardoz,

I am still researching on this topic and a concern popped up is on the Address that needs to be on my Business account.

While setting up I can setup as with the home address that I have currently but when I leave the country, I would like to update it. Can I update my non-Canadian address ?

 

[zardoz]

Obviously companies do change their registered address when they move to bigger premises etc. I see no reason why you should not be able to.

 

[NetMecca]

I agree with Zardoz. It would also be in your interest to do so properly and prudently. I have recently heard of some immigration fraud relating to address issues. I believe that CIC does not look on this kind of thing kindly, and not properly updating your address information (especially while back home) make have some costly consequences.

Good Luck

 

[life2010]

Hi,
I am in the same boat. So did you figure it out? Whats the conclusion? Also whats the best option corporation/proprietorship/llc etc ?

 

[NetMecca]

For incorporation I would recommend LLC (limited company). Protects your personal assets from business creditors and any legal proceedings. No-one should ever do business as a sole proprietor, it is simply very risky (unless you have nothing to loose).

Literature suggest that you must have a registered address in Canada for any business that you incorporate in Canada. You can apparently register secondary addresses however your legal address has this requirement. See :
http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs02717.html#related
-----------
ANEX B - Item 2:
"Address of registered office
The registered office address is the legal address of the corporation. All official documents that are sent by registered mail to, or that are served on, a corporation at the registered office address are deemed to be received by the corporation.

Indicate the street name and number, city, province/ territory and postal code of the registered office.

Note
The registered office address cannot be a post-office box and the address must be within the province or territory as indicated in the articles of the corporation.
"
-------------

Regarding operations, the only complication would be if by virtue of your being outside of Canada, you do not meet the PR standard for minimum time in Canada, to maintain your PR status.

If you loose your PR status, you are not permitted to own 100% of any business in Canada.
See item 4 on the same link & annex as above.

Other than that and if you pay your taxes properly and on time, you will not likely encounter any issues with this.

So having and maintaining a Canadian Bank account and conducting business under a Canadian incorporated business, should not prove an issue at all except for the need to have an address in Canada, if you are away.

Hope this helps.

Good luck

 

[sunshinemrc]

check out this site. Please note that there are residency requirements. There are some exceptions (BC Company for example).

http://www.self-counsel.com/news/business/incorporation/319-incorporation-in-canada.html?start=5

 

[life2010]

Are there companies which do registration for u and also serve as registered agents ?

 

[sunshinemrc]

Are there companies which do registration for u and also serve as registered agents ?

Yes. I don't remember the names off the top of my head, but they incorporate, and file the annual filings on your behalf. Basically what they do is each year they print off a package of documents and send to you as the director, once you sign and return to them they will file the annual filings. As I recall, a few years back they charged around $300 dollar per year for the service (part of this fee is the government filing fee they have to remit).