new-site/docs/foreign-incorporation-guide.md

Foreign Non-Resident Incorporation Guide — Canada vs US

Last updated: 2026-04-05 Purpose: Guide for non-US/non-Canadian foreigners who want to form a business entity. Recommendation: if they don't have SSN/ITIN, steer them toward Canadian incorporation.

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The Problem: US LLC Formation for Foreigners

Foreign non-residents who want a US LLC face these barriers:

Barrier	Details
EIN requires SSN or ITIN	IRS Form SS-4 asks for the responsible party's SSN or ITIN. Without either, you must fax the form — takes 4-6 weeks, often lost.
ITIN requires a tax return	You can only apply for ITIN by filing a US tax return (Form W-7 + 1040-NR). Catch-22: you need the ITIN to get the EIN to open the bank account to earn income to file the return.
US bank accounts	Nearly impossible without SSN/ITIN. Most banks require physical branch visit + SSN. Mercury, Relay, Novo all require SSN.
Stripe US	Requires SSN or ITIN for identity verification of the responsible person.
PayPal US	Requires SSN for business accounts.
State-level complications	Some states (CA, NY) have additional requirements for foreign-owned LLCs.
FATCA/CRS reporting	Foreign-owned US LLCs trigger complex tax reporting obligations.

Bottom line: A foreigner without ITIN faces 2-6 months of bureaucracy just to get an EIN and bank account for a US LLC. Many give up.

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The Solution: Canadian Corporation

Canadian provincial incorporation has none of these barriers for foreigners:

Factor	US LLC	Canadian Corporation
Government ID number needed?	SSN or ITIN (hard to get)	No SIN required
Resident director required?	No (most states)	No (BC, ON, AB, SK, MB, QC)
Physical presence required?	No (most states)	No — fully remote
ID for incorporation	Not needed at filing	Passport or national ID
Bank account	Requires SSN/ITIN	Fintech banks accept foreign directors
Payment processing	Stripe requires SSN	Stripe Canada accepts foreign directors
Time to operational	2-6 months (EIN + bank)	1-2 weeks
Corporate tax (small biz)	21% federal	11% (BC) / 12.2% (ON)
Sales tax on exports	Varies by state	0% GST/HST on exports

What foreigners DON'T need for Canadian incorporation:

• No SIN (Social Insurance Number) — SIN is for employment/tax, not incorporation
• No Canadian passport or permanent residence card
• No ITIN (that's a US concept — doesn't exist in Canada)
• No physical visit to Canada
• No Canadian bank account at time of incorporation
• No Canadian co-signer or guarantor

What foreigners DO need:

Requirement	Details
Valid government photo ID	Passport, national ID card, or driver's license
Residential address	Can be in their home country (for director record)
Registered office in the province	We provide this via Anytime Mailbox
Filing fee payment	Credit card (Visa/MC)
Email address	For correspondence — we provision a .ca email if CRTC

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Province-by-Province Requirements for Non-Resident Foreign Directors

Provinces WITH NO Resident Director Requirement (Foreign-Friendly)

These provinces allow 100% foreign ownership with all directors being non-residents:

British Columbia (BC)

Item	Details
Governing Act	BC Business Corporations Act (BCBCA)
Resident director requirement	None — never had one
Incorporation portal	BC Corporate Online (anonymous, no login)
Government fee	~C$350
Annual return	C$42.71/yr (BC Annual Report)
Director ID needed at filing?	No — just name and address
Director address	Any worldwide address accepted
Registered office	Must be in BC — we provide (AMB Vancouver)
SIN needed?	No
Language	English only
Our price	C$449 + C$350 gov fee + AMB mailbox (~C$156-240/yr)

Ontario (ON)

Item	Details
Governing Act	Ontario Business Corporations Act (OBCA)
Resident director requirement	None — removed by Bill 213, July 5, 2021
Incorporation portal	Ontario Business Registry (requires Ontario Business Account login)
Government fee	~C$360
Annual return	C$25/yr (Ontario Annual Return)
Director ID needed at filing?	Name, address, resident Canadian checkbox (can be "No")
Director address	Any worldwide address accepted
Registered office	Must be in Ontario — we provide (AMB Toronto)
SIN needed?	No
Language	English or French
Our price	C$449 + C$360 gov fee + AMB mailbox (~C$96-168/yr)

Alberta (AB)

Item	Details
Governing Act	Alberta Business Corporations Act (ABCA)
Resident director requirement	None
Incorporation portal	Alberta Corporate Registry (account required)
Government fee	~C$275
Annual return	C$20/yr
Director address	Any worldwide address accepted
Registered office	Must be in Alberta
SIN needed?	No
Our price	Not yet offered — architecture supports it

Saskatchewan (SK)

Item	Details
Governing Act	Saskatchewan Business Corporations Act (SBCA)
Resident director requirement	None
Government fee	~C$266
Annual return	C$50/yr
SIN needed?	No
Our price	Not yet offered

Manitoba (MB)

Item	Details
Governing Act	The Corporations Act (Manitoba) (TMCCA)
Resident director requirement	None
Government fee	~C$350
Annual return	C$50/yr
SIN needed?	No
Our price	Not yet offered

Quebec (QC)

Item	Details
Governing Act	Quebec Business Corporations Act (QBCA)
Resident director requirement	None
Government fee	~C$379
Annual return	C$89/yr
Language	French required for filings and corporate documents
SIN needed?	No
Banking caveat	Venn does not serve Quebec corporations per TOS
Our price	Not yet offered — French language requirement adds complexity

Provinces WITH Resident Director Requirement (NOT Foreign-Friendly)

These provinces require at least 25% of directors to be resident Canadians. Non-residents cannot be the sole director.

Province	Requirement	Governing Act
Nova Scotia (NS)	25% Canadian residents	NSCA s.71
New Brunswick (NB)	25% Canadian residents	NBBCA s.63
Prince Edward Island (PE)	25% Canadian residents	PEI Companies Act
Newfoundland & Labrador (NL)	25% Canadian residents	CNLCA s.170

Workaround: If a client specifically needs one of these provinces, they need a Canadian resident co-director. We do NOT offer nominee director services.

Federal (CBCA) — NOT Recommended for Foreigners

Item	Details
Governing Act	Canada Business Corporations Act (CBCA)
Resident director requirement	Yes — 25% must be Canadian residents
Government fee	C$200 (cheapest)
Language	English and French
Why not recommended	Residency requirement defeats the purpose for foreign non-residents

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Banking for Non-Resident Foreign Directors

This is the hardest part. The corporation is Canadian, but the directors/owners are not.

Venn.ca (Our Current Referral Partner)

Item	Details
Eligibility	TOS says "Customers resident in Canada" but in practice this refers to the corporation's domicile, not the individual. Confirmed: US passport + US residential address accepted for account opening.
KYC	FINTRAC requirements — identity verification of beneficial owners via passport/ID
Quebec	Explicitly excluded from service (Venn TOS Section 2)
Non-resident directors?	Yes — confirmed working. PW account opened with US passport + US residential address for the director, and AMB mailbox (Canadian registered office) as the business address.
How it works	Business address = AMB mailbox (Canadian), Director/beneficial owner = foreign passport + foreign home address. Venn treats the corporation as Canadian (it is), doesn't require the director to be Canadian.
Recommendation	Primary banking referral for all Canadian formations, including non-resident directors.

Status: Venn accepts non-Canadian directors. The key is that the business address is Canadian (our AMB mailbox). The director's personal address and nationality don't matter. Need to verify the full signup flow via Playwright recon to document exact ID types accepted (passport, national ID, driver's license) and any country restrictions beyond Quebec and OFAC-sanctioned nations.

Wise Business (Recommended for Non-Residents)

Item	Details
Canadian registration	Wise Payments Canada Inc., regulated by FINTRAC
Accepts non-resident directors?	Yes — Wise serves businesses globally. Canadian corp with foreign directors accepted.
Verification	Passport + proof of address (home country) + company registration documents
Currencies	CAD, USD, EUR, GBP + 40 more
CAD account	Yes — local Canadian bank details for EFT/direct deposit
USD account	Yes — US routing number + account number for ACH
Cards	Wise Business debit cards for team spending
Fees	Low FX margins (0.4-0.6%), no monthly fee
Setup time	~1-3 business days online

Airwallex (Good for High-Volume International)

Item	Details
Canadian registration	Airwallex (Canada) Ltd., regulated by FINTRAC
Accepts non-resident directors?	Yes — designed for international businesses
Verification	Company documents + director passport + proof of address
Currencies	CAD, USD + 60+ currencies
Best for	Businesses with high international transfer volume, marketplace payouts
Fees	Competitive FX, volume discounts
Setup time	~2-5 business days

Payoneer (Good for Freelancers/Marketplaces)

Item	Details
Accepts non-resident directors?	Yes — global platform
Best for	Receiving payments from US/EU marketplaces (Amazon, Fiverr, Upwork)
CAD receiving account	Yes
USD receiving account	Yes

Traditional Banks (Require Branch Visit)

Bank	Non-Resident Directors?	Requirements
TD Canada Trust	Case-by-case	At least one person must visit a branch. Passport + company docs.
RBC Royal Bank	Case-by-case	Similar to TD. May require introduction by existing client.
BMO	Case-by-case	Commercial banking team handles non-resident applications.
Scotiabank	Most flexible for international	Caribbean/Latin American connections help.

Traditional banks generally require at least one in-person visit to a Canadian branch for initial account opening. Some allow subsequent management remotely.

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Payment Processing for Non-Resident Directors

Processor	Accepts Non-Resident Directors?	Requirements
Stripe Canada	Yes — accepts passport for identity verification	Canadian corporation + director passport + registered office address
PayPal Canada	Yes — more flexible than PayPal US	Canadian corporation + director passport
Square Canada	Yes	Canadian corporation + director ID
Adyen	Yes (enterprise)	KYC on all beneficial owners

Key insight: Stripe Canada does NOT require SIN for the responsible person — they accept a passport. This is a massive advantage over Stripe US (which requires SSN/ITIN).

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Our Recommendation Flow for Foreign Non-Residents

On the Formation Order Page

When a customer selects "I don't have a US SSN or ITIN" or selects a non-US country of residence, show a callout:

No US SSN or ITIN? Consider a Canadian corporation.

Canadian provinces like BC and Ontario allow 100% foreign ownership with no
Canadian residency requirement for directors. No SIN needed. Incorporate
remotely in 3-7 business days.

Benefits over US LLC for non-residents:
- No SSN/ITIN needed (Canada has no equivalent requirement)
- Bank account via Wise Business (accepts non-resident directors)
- Stripe Canada accepts passport for verification
- Lower corporate tax: 11% (BC) vs 21% (US federal)
- 0% sales tax on exports

C$449 + government fees (~C$350-360) + registered office mailbox.
[Start a Canadian Corporation →]

On the CRTC Order Page

No changes needed — the CRTC page already targets foreign non-residents specifically (US telecom operators who want Canadian carrier status). The Stripe Identity verification already handles foreign passports.

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OFAC / Sanctions Considerations

Even though Canada has fewer barriers for foreigners, OFAC sanctions still apply if the person intends to transact with US parties or use US financial infrastructure:

• Nationals of comprehensively sanctioned countries (Cuba, Iran, North Korea, Syria, parts of Russia/Belarus/Venezuela/Myanmar) are blocked from US financial system regardless of where they incorporate
• FINTRAC (Canada's AML agency) may also flag certain nationalities for enhanced due diligence
• Canadian banks perform their own sanctions screening
• We do not provide sanctions compliance advice — customers should verify their personal compliance status with qualified legal counsel

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Summary: Which Province to Recommend for Foreign Non-Residents

If the client...	Recommend	Why
Wants cheapest option	Alberta (C$275 gov fee)	Lowest filing fee, no residency requirement
Wants established business presence	Ontario (C$360 gov fee)	Largest market, Toronto address prestige
Wants Pacific/Asia-Pacific focus	BC (C$350 gov fee)	Vancouver gateway, strong Asian business ties
Wants cheapest annual maintenance	Ontario (C$25/yr)	Lowest annual return fee
Needs French-language corporate docs	Quebec (C$379 gov fee)	Only if specifically needed — banking complications
Wants federal presence in all provinces	Not recommended	25% Canadian resident director requirement

Default recommendation: British Columbia or Ontario, depending on business focus. BC for Pacific/international, Ontario for North American market presence.

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Implementation Notes

Formation Page Changes

1. Add a "Country of Residence" field to the formation order form
2. When country is NOT US and NOT Canada, show the "Consider Canadian Corporation" callout
3. When the user doesn't have SSN/ITIN (checkbox), show the callout
4. Link to the Canadian formation flow (same page, country=CA auto-selected)

Banking Referral Changes

1. For ALL Canadian formations (resident or non-resident directors): recommend Venn as primary
   • Confirmed: Venn accepts non-Canadian directors with foreign passport + foreign address
   • Business address uses our AMB mailbox (Canadian) — this satisfies Venn's requirements
2. Wise Business and Airwallex as secondary alternatives (for clients who prefer them or need features Venn doesn't offer)
3. Banking referral email template stays the same (Venn link) — no need to branch by residency

Product-Facts.md Updates

1. Add "No SSN or ITIN required" to Canadian formation bullet points
2. Add "Non-resident foreign directors welcome" language
3. Add banking alternatives for non-residents (Wise, Airwallex)

Venn Verification Needed

• Can a Canadian corporation with 100% non-resident directors open a Venn account? YES — confirmed. Business address uses AMB mailbox (Canadian). Director uses foreign passport + foreign home address.
• Run Playwright recon on Venn signup flow to document exact ID types accepted and country restrictions
• Confirm whether non-US/non-CA passports (e.g., EU, Asian, African) are also accepted
• Check if Venn requires the director to have a specific type of address proof