Most provinces and territories of Canada require a certain percentage of the directors of the corporation to be residents of Canada. However, there are a few exceptions. Foreign companies and others outside of Canada looking to incorporate in Canada should be aware of these exceptions when determining where in Canada to incorporate. The following is a summary of the Canadian residency requirements for directors:
- Federal: at least 25% must be residents of Canada
- Alberta: at least 25% must be residents of Canada
- British Columbia: does NOT require that directors be residents of Canada
- Manitoba: at least 25% must be residents of Canada; if corporation has three or fewer directors, one of them must be a resident of Canada
- New Brunswick: does NOT require that directors be residents of Canada
- Newfoundland and Labrador: at least 25% of the directors of a corporation must be residents of Canada; but this doesn’t apply where corporation earns no income in Canada
- Nova Scotia: does NOT require that directors be residents of Canada
- Nunavut: does NOT require that directors be residents of Canada
- Northwest Territory: does NOT require that directors be residents of Canada
- Ontario: at least 25% must be residents of Canada; where a corporation has less than four directors, at least one director still must be a resident Canadian.
- Prince Edward Island: does NOT require that directors be residents of Canada
- Quebec: does NOT require that directors be residents of Canada
- Saskatchewan: at least 25% must be residents of Canada; where a corporation has less htan four directors, at least one director must be a resident Canadian.
- Yukon: does NOT require that directors be residents of Canada