ESTABLISHING A SUBSIDIARY IN CANADA: A Bold and Structuring Growth Strategy
Audrey Calligaro- Apr 18
- 3 min read
Updated: Apr 22
As part of an internationalization strategy, companies can choose from several pathways: direct export, strategic partnerships, distribution networks, e-commerce, external growth, or local establishment. Each of these approaches has its own advantages and challenges, which must be carefully assessed in light of your objectives, available resources, and development timeline.
Among these options, establishing a subsidiary in Canada represents a significant commitment—one that offers numerous medium and long-term benefits.
What Is a Subsidiary?
Definition and How it works
Establishing a company under Canadian law involves completing a number of administrative formalities, which differ depending on local legislation.
These formalities vary based on several factors, including the province where the head office will be located, whether the company charter is federal or provincial, the legal or civil status of shareholders, the legal structure of the company, the type of business activities, and more.
Creating a subsidiary means establishing an independent legal entity in Canada that is partially or wholly owned by the parent company. This structure allows a business to operate locally while maintaining strategic continuity with its home office.
At Adexia, we support our clients at every stage of the process to simplify these complex procedures and ensure a secure and successful market entry. Discover our international business support services
Benefits of Establishing a Subsidiary in Canada
Strategic Autonomy:
A subsidiary operates within its own local framework, allowing for agile decision-making and operations tailored to the realities of the Canadian market.
Commercial and HR leverage:
Localize your commercial contracts and the employment contracts of your Canadian teams by carrying them through your subsidiary.
Tax Optimization:
Depending on the structure chosen, certain provincial or federal tax incentives may be available, offering financial advantages for foreign companies.
Enhanced Local Credibility
Develop your company's Canadian and North American identity. A physical presence fosters the confidence of Canadian partners, customers and institutions
Key Considerations
Making the right start-up choices:
Which legal form to choose? Under which legal charter?
How to organize the shareholder package, which directors to appoint, choosing your tax year, the importance of the company's physical address When to open tax accounts.
Every decision has consequences in the short to medium term, and some changes can be lengthy and costly.
Administrative Complexity:
While legally incorporating a subsidiary is quick and easy, you'll need to familiarize yourself with the administrative ecosystem of the various levels of government. Each province has its own administrative and tax structure, so it's essential to surround yourself with the right experts to avoid errors or omissions.
Surrounding yourself well:
A number of experts contribute to the operation of the subsidiary throughout its useful life. Lawyers, accountants, tax specialists, personal or risk insurance brokers, landlords, immigration or mobility consultants...
A scrupulous initial selection of your experts enables you to make them partners in the success of your local establishment.
To guide you efficiently, Adexia has developed a One-Stop-Shop offer, designed to lighten and accelerate all phases of your subsidiary creation project. Explore our One-Stop-Shop offer:
Adexia’s One-Stop-Shop: Tailored Support for Your Subsidiary Launch
At Adexia, our One-Stop-Shop service is designed to provide clients with personnalized, seamless, end-to-end support throughout the entire process of setting up a subsidiary in Canada.
Here’s what it includes:
Comprehensive Project Management:
From legal incorporation and business registration to office address setup and employee hosting, we take care of every administrative detail.
Delegated Operational Management:
We handle essential operations such as HR, payroll, tax compliance, and executive coaching, so you can focus on growing your business.
Direct Access to a Trusted Local Network:
Benefit from our established network of local experts, lawyers, accountants, and business partners across Canada.
🎯 Our mission: To allow you to concentrate on your commercial development, while we ensure a smooth operational launch.
🎥 Watch the video testimonial from one of our clients who successfully created a Canadian subsidiary with Adexia.
Conclusion
Establishing a subsidiary in Canada is a strategic and transformative step for any company aiming to build a lasting presence in North America. When approached with structure and the right support, it becomes a powerful growth lever.
At Adexia, we provide:
Field-tested expertise
A network of vetted local professionals
Tailored guidance to make your market entry secure, efficient, and sustainable
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