Changes to incorporation in Ontario

Effective from July 5, 2021, corporations established in Ontario will no longer need a Canadian resident director.

Before this date, foreign businesses who wished to establish a corporation in Canada without any Canadian resident directors had to incorporate in either British Columbia or New Brunswick where there is no requirement to name a Canadian resident director. If they did wish to incorporate in Ontario, it often meant recruiting a Canadian resident director, which places an additional cost on businesses.

With this change in Ontario, foreign businesses wishing to invest in expanding their operations into Canada now have an additional choice when it comes to the jurisdiction where they wish to establish the company. This can simplify governance requirements for businesses who may have been operating in Ontario, but were required to keep a remote presence in New Brunswick or British Columbia due to the residency requirement of the directors.