Canada: Types of Company
Branches and Representative Offices
A Branch can be established in Canada by a foreign corporation. The Branch must be registered or obtain a licence in the province in which it intends to carry on business. The definition of “carrying on a business” varies from province to province, so careful consideration must be made to establish exactly what type of business can be carried on in any one province.
It is possible for branches to benefit from certain tax advantages, depending on the province in which it is established. For example, in some instances, losses incurred by the branch can be offset against taxable profits earned by the foreign corporation in other jurisdictions – although this does, of course, depend on whether the other jurisdiction allows such.