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Canada – Extra Provincial Corporation
  • Canada is a country with a comparatively strict system of taxation. Ordinary Canadian companies are liable to tax on all their worldwide income. Accordingly, they have no features attributable to tax-exempt or offshore structures.
  • As such, Canada has an image in the eyes of entrepreneurs and government bodies as a country with a standard system of taxation. Due to this, any structure established on Canadian territory is considered a highly prestigious vehicle.
  • Canadian legislation does offer the opportunity of establishing a tax-exempt entity in Canada. The local legislation of some provinces allows for the domiciliation of companies registered in other countries, including tax-exempt countries, for the purpose of establishing of their residence in Canada. Structures of this type that have acquired Canadian registration have been named as an "Extra-Provincial Corporation", or as its abbreviation being an EPC.
  • In the event that an EPC has no source of income in Canada, and the control and management of the EPC is located outside of Canada, the EPC operates in a tax-exempt regime. Accordingly, the incorporation of an EPC in Canada consists of the incorporation of two structures. The first one is a principal company, usually from a classic tax-exempt jurisdiction, and the second is simultaneously an EPC in Canada.

GENERAL INFORMATIONTotal area - 9,984,670 sq km
Population - 34,500,000
Location - click here to see the map of offshore jurisdictions
Political status - Federation
Capital - Ottawa
Official language - English, French
Official currency - Canadian Dollar (CAD)
Time zone - GMT - 4 / GMT - 8
Company typeExtra Provincial Corporation (EPC)
Directors/OfficersCanada EPC companies require a minimum of 1 Director, who must be a natural person. No restrictions regarding residence country of Directors.
Each Canada EPC company must keep a Register of its Directors with the Register of Enterprises of appropriate province of Canada.
ShareholdersCanada EPC companies require a minimum of 1 shareholder, who may be a natural person or a corporate body from any legal jurisdiction.
Each Canada EPC company must keep a Register of its shareholders with the Register of Enterprises of appropriate province of Canada.
SecretaryThere is no statutory requirement for a company secretary to be appointed.
Authorised share capital Authorised capital of Canada EPC is identical to authorised capital of its parent company.
There is no statutory requirement for capital to be fully or partly paid on incorporation.
Company Names The name of a Canada EPC company must end with the words "Incorporated", "Corporation", "Limited" or suffixes such as "Inc.", "Corp.", "Ltd.", etc.
Company names containing restricted words such as "Bank", "Insurance", "Trust" etc. will not be permitted unless an appropriate national operating licence has been obtained by the company.
Beneficial Ownership information Information with regard to ultimate beneficial ownership must be disclosed to the Registered Agent of the company and is held by the agent on a confidential basis.
Filing of Annual ReturnAn Annual Return must be submitted every 12 months after the date of registration.
Filing of Financial StatementsThere is no requirement to file Financial Statements in Canada for EPC companies.
Corporate TaxationCanada EPC companies which have no business activities in Canada; do not derive any income from Canada sources, and are managed and controlled outside of Canada, are exempt from Canada Federal and Provincial corporation taxes.
Tax TreatiesCanada EPC companies are not regarded as resident for tax purposes in Canada, and therefore are not entitled to take advantage of Double Tax treaties concluded by Canada with other countries.
Timeframe for incorporation 15/20 working days. A complete set of company documents can be delivered in 6/7 weeks.
Takeover of management & secretarial services for an existing Canada EPC companyPossible, following verification of Beneficial Ownership and agreement with and discharge of liabilities to previous corporate service provider in Canada.
Description of incorporation documentsClick here for itemised description of company documents.
"Ready-made"("Shelf") companiesWe are happy to register new Canada EPC companies in accordance with client instructions.
Price of Canada EPC companyEUR 2,160, including incorporation costs, full domiciliary (Registered Agent/Office) costs, set of documents legalised by Apostille, including General Power of Attorney.
The registration of the basic (parent) company, usually from classical offshore jurisdiction, has to be paid separately.
Cost of annual support servicesEUR 1,550 per year, including annual Government Duty, full domiciliary (Registered Agent/Office) costs, General Power of Attorney for current year.
The maintenance of the basic (parent) company has to be paid separately.
  • INTERNATIONAL OVERSEAS SERVICES has the following comments: -
  • When establishing an EPC, the preferable choice of the principal (foreign) company would be to use a structure from one of the standard tax-free jurisdictions such as the BVI, Belize or Seychelles.
  • When establishing an EPC, it is possible in theory to use an already existing tax-exempt company that the client may have. However, the client should bear in mind that the company documents may need to be reworked in order to conform with the requirements of Canadian legislation.
  • As a non-resident of the EU, a Canada EPC company is an appropriate instrument for purchase of goods in the EU countries and their further export to countries outside of the EU. If a Canada company is used, export from the EU becomes obvious, whereas in the case of a company registered in any EU country being used for this purpose, the seller of the goods may not be sure whether the relevant operation is treated as an export from the EU or not.