Ontario Corporation in Canada — Import / Export & Trading Formation Guide
Choose a jurisdiction with strong logistics infrastructure, favorable customs agreements, and access to major trade blocs (like the EU or US). Consider VAT deferral schemes and free trade zones.
Last verified: June 13, 2026
Corporate Tax
15.0%
State Tax
11.5%
Formation Cost
$220
Annual Fee
$0
Forming a Ontario Corporation in Canada as a Import / Export & Trading means a total tax burden of 26.5% and an official formation cost of $220. There is no minimum capital requirement. Standard formation takes 1 business day, or Same day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $540
Ongoing (per year)
≈ $240
Why Ontario Corporation for Import / Export & Trading?
A business model focused on sourcing goods from one country and selling them in another. Success relies heavily on supply chain efficiency, customs compliance, and navigating international trade tariffs.
Ideal for
- Physical product brands
- Wholesalers and distributors
- Dropshippers scaling to bulk inventory
- Cross-border B2B traders
Challenges to watch
- Complex customs and import duties
- High shipping and logistics costs
- Cash flow management due to inventory delays
- Regulatory compliance across multiple jurisdictions
Key decision criteria
- Proximity to major ports or logistics hubs
- Availability of Free Trade Zones (FTZs)
- VAT and sales tax registration requirements (e.g., EORI in the EU)
- Double taxation treaties between sourcing and selling countries
Ontario Corporation formation requirements
Minimum capital
None
Standard timeline
1 business day
Expedited timeline
Same day
Local director
Not required
Registered office
Virtual office allowed
Notarization
Not required
Ontario removed the Canadian residency requirement for directors in 2021. 100% foreign directors are allowed.
Estimated breakdown (based on avg. $1,000,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 13%. Registration threshold: 30,000 CAD. Non-resident digital service providers must register for and collect the 13% HST on B2C sales to Ontario consumers if their global taxable sales exceed $30,000 CAD over 12 months.
Banking & payments for Import / Export & Trading
Opening a traditional bank account in Canada as a non-resident usually requires an in-person visit and a registered Canadian subsidiary or extra-provincial registration. However, digital platforms like Wise and Vault offer remote account opening for Canadian entities with foreign directors, making the process significantly easier.
Supported payment gateways
Remote-friendly accounts
Wise Business
Excellent for multi-currency accounts and remote opening for non-resident directors.
Vault
A Canadian fintech offering multi-currency accounts, corporate cards, and remote onboarding.
Canada incentives & advantages
SR&ED Tax Incentive
Up to 35% federal refundable tax credit (limit increased to $6M in 2026) plus Ontario OITC (8%) and ORDTC (3.5%).
Small Business Deduction (SBD)
Lowers the combined corporate tax rate to 12.2% (reducing to 11.2% effective July 1, 2026).
Ontario Corporation formation steps
Step 1: Choose a corporate name and obtain an Ontario-biased NUANS Name Search Report (or opt for a numbered company to skip this step).
Step 2: Draft the Articles of Incorporation (Form 1), detailing the share structure, board of directors, and business restrictions.
Step 3: File the Articles of Incorporation online via the Ontario Business Registry (OBR) and pay the $300 CAD government fee.
Step 4: Receive the Certificate of Incorporation and your 9-digit Ontario Business Identification Number (BIN).
Step 5: File the Initial Return (Form 1) within 60 days of incorporation to confirm director and officer details with the province.
Step 6: Set up the Corporate Minute Book, issue initial share certificates to founders, and draft corporate bylaws.
Step 7: Register for a Canada Revenue Agency (CRA) Business Number, Corporate Income Tax (T2) account, and HST account (mandatory if revenue exceeds $30,000 CAD).
Step 8: Open a dedicated corporate bank account using your Certificate of Incorporation and Articles.
Import / Export & Trading FAQ
Do I need a company in the country I am importing to?
Not always. You can often act as a Non-Resident Importer (NRI), but having a local entity can simplify customs, VAT registration, and local banking.
What is an EORI number and do I need one?
An Economic Operators Registration and Identification (EORI) number is required for businesses importing or exporting goods into or out of the European Union.
Should I incorporate in a Free Trade Zone (FTZ)?
FTZs offer tax exemptions and simplified customs procedures, making them ideal if you plan to re-export goods without them entering the local domestic market.
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Related guides
Complete Ontario Corporation guide
Taxes, requirements, banking, compliance
Ontario Corporation cost calculator
One-time and annual cost breakdown
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🇨🇾 Import / Export & Trading — Sole Proprietorship
Tax 0.0% · formation $100
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