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Most provinces and territories have strict rules with respect to who may and may not carry on business in their jurisdiction. If a corporation wishes to carry on business in a province or territory and wasn’t incorporated there, it most likely has to register before, or within a short period of time after commencing business activities.
The level of work or business being carried that will led to a registration requirement varies by jurisdiction, however, things like having a local phone number, having local sales people, a local office, or being listed in a local directory (such as a phone book), can be sufficient to require extra-provincial registration.
Registration usually requires payment of a registration fee, and also requires completing annual reporting requirements.
The requirements for extra-provincial registration vary by province and the penalties for failing to comply can be significant. Accordingly, we recommend speaking with a business lawyer before carrying on any type of business or even looking for business in any province or territory other than where your corporation was incorporated.
If you’d like more information please contact a business lawyer with Twin River Law LLP.
This article contains general information, NOT LEGAL ADVICE.
If you’d like legal advice from a lawyer, incorporate with us or contact a lawyer with Twin River Law LLP to request a consultation.