Canada consistently ranks among the world’s most attractive destinations for business and investment. Its stable economy, well‑educated workforce and open trading system entice entrepreneurs and investors from all over the globe, including Mexico. In 2023 the stock of U.S. foreign direct investment (FDI) in Canada exceeded US$452 billion—a testament to Canada’s ability to attract capital. Mexico’s investors also benefit from the United States–Mexico–Canada Agreement (USMCA), which replaced NAFTA in 2020 and continues to support a strong investment framework.

This guide explains why investing in Canada is appealing, outlines the steps to establish a corporation, discusses opportunities and restrictions for foreign investors, and shows how Maple Business helps entrepreneurs navigate the process.

Why invest in Canada?

Strong fundamentals and skilled talent

Investors are attracted to Canada’s robust economic fundamentals. More than half of Canadians aged 25–64 have post‑secondary education and eight Canadian cities offer some of the lowest total costs for skilled technology talent. Canada’s high standard of living and environmental quality also contribute to an attractive business climate. The country ranks among the top three globally for best business climates for entrepreneurs and is projected to be the second‑best country in the G20 for doing business between 2025 and 2029.

Open trade and market access

Canada has fifteen free trade agreements (FTAs) that provide preferential access to 51 countries and more than 1.5 billion consumers. These agreements—including USMCA, the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP)—give Canadian companies global reach. For Mexican investors, USMCA ensures smoother cross‑border supply chains and investment protections.

Transparent legal system and stability

Canada is politically stable and boasts a respected rule of law. Foreign-owned investments are generally treated the same as domestic investments. The Investment Canada Act (ICA) governs foreign investment and was modernized in 2024 to include new filing requirements, extended national security reviews and penalties for non‑compliance. While national security considerations exist, Canada encourages FDI and maintains an enabling environment.

Competitive tax environment

Canada’s federal corporate tax rate is 15 %, and a reduced 9 % rate applies to the first CAD 500 000 of active business income earned by small Canadian-controlled private corporations. Combined with provincial taxes, the overall corporate tax rate averages 26.1 %. The country offers accelerated depreciation incentives, tariff‑free import of capital goods and the lowest tax treatment for new business investment among G7 countries (13 %). For zero‑emission technology manufacturing, the corporate tax rate drops to 17.9 %.

Access to natural resources and innovation

Canada is rich in natural resources—oil, gas, minerals and timber—that underpin sectors such as energy, mining and forestry. It is also a hub for innovation and technology: major cities like Toronto, Montréal and Vancouver host thriving start‑up ecosystems and global technology firms. This combination appeals to investors seeking both traditional and high‑growth opportunities.

Investment opportunities and restrictions

Types of investment

Direct business investment—the focus of this article—entails setting up or acquiring a Canadian company. The primary attraction is Canada’s business‑friendly environment and access to North American and global markets. Investors can form corporations, partnerships or sole proprietorships depending on their goals and liability preferences.

Other investment options include:

Public equities and funds: Canadian stock exchanges (TSX and TSX Venture Exchange) list blue‑chip and emerging companies. Investors can also access exchange‑traded funds (ETFs) that track sectors such as energy, technology or real estate.

Bonds and fixed income: Government of Canada bonds are considered low‑risk; corporate bonds offer higher yields.

Private equity and venture capital: Canada’s VC ecosystem is growing, with funds targeting technology, healthcare and clean‑tech startups.

Real estate: Residential and commercial property investments are regulated; however, non‑residents face restrictions.

Sector‑specific restrictions and the Investment Canada Act

Although Canada welcomes foreign investment, some sectors have ownership restrictions or are subject to national security review:

Residential real estate: Since 2023, non‑Canadians are prohibited from purchasing residential property in Canada (except for certain exemptions); this ban remains in effect until January 2027. Investors should instead consider commercial real estate or publicly traded real estate investment trusts (REITs).

Telecommunications, airlines and banking: These sectors have foreign ownership limits. Telecommunications carriers and airlines must be majority‑owned by Canadians, and foreign banks require approval under the Bank Act to operate and cannot accept deposits under CAD 100 000. Cultural industries (publishing, film, broadcasting) also face restrictions.

Critical minerals and infrastructure: The April 2024 amendments to the Investment Canada Act add an economic security factor to reviews, reflecting government concerns about sensitive sectors like critical minerals, energy and technology.

Because the ICA requires notification or approval for transactions over certain thresholds, investors should seek legal guidance before proceeding. In 2023‑24 there were 1 201 new ICA filings and 26 national security reviews.

How to register a company in Canada

1. Choose your jurisdiction and structure

Canada permits both federal and provincial incorporation. A federal corporation can conduct business across all provinces and territories, while a provincial corporation is restricted to the province where it is registered (e.g., Ontario, British Columbia, Alberta). For cross‑border investors, federal incorporation often provides greater flexibility. Investors must also choose between a Corporation, Partnership or Sole Proprietorship. Corporations offer limited liability and easier access to financing, whereas partnerships and sole proprietorships are simpler to establish but provide less liability protection.

2. Name search and incorporation documents

Select a unique business name and conduct a NUANS (Newly Upgraded Automated Name Search) report for federal or some provincial incorporations. Prepare Articles of Incorporation outlining the company’s share structure, directors and corporate rules. You must appoint at least one director; some provinces require that a portion of directors be Canadian residents.

3. Obtain a Business Number and tax accounts

Upon incorporation, the Canada Revenue Agency (CRA) issues a Business Number (BN)—a unique 9‑digit identifier used for federal, provincial and municipal programs. Most provinces automatically issue a BN when you incorporate, while others require a separate request. If your annual revenue exceeds CAD 30 000, you must register for a Goods and Services Tax / Harmonized Sales Tax (GST/HST) account. The BN also links to program accounts for payroll deductions, import–export and corporation tax.

4. Set up banking and finance

Opening a corporate bank account is essential for receiving payments and paying expenses. While Canada has robust anti‑money‑laundering rules, non‑residents can open accounts with proper identification and corporate documents. You typically need two pieces of government‑issued ID and proof of address. Some banks may require in‑person visits; others allow remote setup with assistance from partners like Maple Business.

5. Register for permits and licences

Depending on your industry, you may need municipal, provincial or federal licences (e.g., for food services, transportation, or securities). The BizPaL service helps determine required permits. maplebiz.ca  can guide you through the process.

6. Maintain compliance and file taxes

Corporations must file an annual return and corporate income tax return each year. Public companies must adhere to securities laws. GST/HST returns are due annually or quarterly depending on revenue. Keeping accurate records, remitting payroll deductions and meeting filing deadlines are essential. Many foreign investors hire accountants or firms like Maple Business to handle compliance.

Maple Business: Your partner for investing and incorporation

Maple Business is a Canadian professional services firm that provides end‑to‑end support to foreign entrepreneurs. For investors from Mexico and Latin America, the firm offers:

Strategic planning: Assessing which province and corporate structure best suit your goals; evaluating tax implications and sector restrictions.

Incorporation and registration: Handling name searches, drafting Articles of Incorporation, filing with Corporations Canada or provincial registries, and obtaining your BN and tax accounts.

Banking and finance: Assisting with corporate bank account opening, connecting with local financial institutions and advising on capital flow considerations.

Accounting and tax compliance: Providing bookkeeping, payroll and GST/HST services; ensuring your corporation meets CRA requirements.

Investment guidance: Advising on permitted investments and restrictions (e.g., residential real estate ban until 2027, telecom and banking ownership limits); helping you leverage Canada’s tax incentives and trade agreements for cross‑border growth.

Immigration support: Referring you to immigration specialists for work permits, start‑up visas or entrepreneur streams if you plan to live or work in Canada.

Maple Business’s comprehensive services allow investors to focus on growth while navigating complex regulations.

Canada is a premier destination for investors seeking stability, innovation and global reach. Its educated workforce, open trading system and supportive business climate attract billions in FDI. Although certain sectors and real estate are restricted, Canada generally treats foreign investors on par with domestic firms. By following proper steps—selecting the right jurisdiction, incorporating, obtaining a Business Number and tax accounts, and opening a bank account—you can establish a Canadian business smoothly.

For Mexican investors looking to expand abroad, Maple Business offers a trusted bridge to the Canadian market. Whether you are diversifying assets, tapping North American consumers, or seeking a stable environment for growth, Canada provides fertile ground. With professional guidance and a clear understanding of regulations, your investment journey can begin with confidence.