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.
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