Recruiting in Canada does not always require setting up a company there. It does require knowing under which regime a foreign employer is allowed to file returns and pay contributions, and on what conditions.
Three routes generally exist: registration of the foreign employer with the local bodies, the use of an employer of record established on the spot, or the creation of a structure. The first is the least costly but presupposes a local correspondent able to file the returns in the language and to the calendar of the country; the second moves the employment relationship to a third party, which is not neutral in law. The choice is made in the light of the number of employees, the duration envisaged and what local law actually permits.
Everything starts with the province: it determines the employment standards that apply, the workers' compensation board involved and, in Quebec, an entire additional set of identifiers. An employer who answers "Canada" without naming a province has not yet begun to address the issue.
Registration follows. The business number is issued by the Canada Revenue Agency, together with a payroll deductions programme account: without that account, no deductions can be remitted and no annual slips produced. In Quebec, a Quebec enterprise number and a separate set of accounts with Revenu Québec are added.
Whether the provincial workers' compensation board must be joined is assessed province by province: the employers covered and the industries left out vary, and the point should be confirmed locally before the first hire.
No statute requires a written contract, but one is strongly advisable: failing that, the common law imposes reasonable notice whose duration, fixed by the courts, far exceeds the statutory minimum. This is the leading source of unpleasant surprises for foreign employers.
Source deductions, periodic remittances whose frequency depends on volume, and annual slips issued to the employee and to the tax authorities then set the rhythm of payroll. Plan finally for provincial termination rules, which sit alongside common law notice rather than replacing it. Written policies on vacation, overtime and public holidays should likewise follow the provincial standard rather than a head office template.
In Canada, running payroll on behalf of third parties is reserved by law to no registered profession: any company may take it on. The absence of a legal barrier shifts the checking onto you, and that is why the network itself verifies the registration, the tax and social security standing and the insurance cover of every firm before listing it.
| Local wording | Issuing body | Validity | Source |
|---|---|---|---|
| Certificat de conformité (Certificate of Compliance) — sociétés fédérales ; ou État de renseignements d'une personne morale au registre des entreprises (Québec), Certificate of Status (Ontario et autres provinces)Certificate of Compliance / Certificate of Status Deux niveaux possibles au Canada : constitution fédérale (Loi canadienne sur les sociétés par actions, certificat de conformité de Corporations Canada) ou provinciale. Une société fédérale doit en outre être immatriculée dans chaque province où elle exerce : au Québec, demander le NEQ et l'état de renseignements du Registraire des entreprises. | Corporations Canada (fédéral) ; Registraire des entreprises du Québec (NEQ) ; registre provincial correspondant | 3 months Required | Official website |
| Numéro d'entreprise (NE / Business Number) et comptes de programme : RT (TPS/TVH) et RP (retenues sur la paie) ; au Québec, numéro d'identification et numéro de TVQBusiness Number with RT (GST/HST) and RP (payroll) program accounts Le compte de programme RP est le point de contrôle opérationnel : sans lui, le cabinet ne peut pas verser les retenues à la source ni produire les T4. Au Québec, un second jeu d'identifiants est nécessaire auprès de Revenu Québec (TVQ, retenues, RQAP). | Agence du revenu du Canada (ARC) ; Revenu Québec pour les comptes québécois | No expiry Required | Official website |
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