Canada is a business-friendly market, but launching a digital company still means choosing the right jurisdiction, registering for the right taxes, and building privacy and anti-spam compliance from day one.
Federal vs. provincial register
The first big decision a digital company faces is whether to incorporate federally under the Canada Business Corporations Act or provincially/territorially. Federal corporations can carry on business anywhere in Canada (they may still need to register “extra-provincially” where they operate), which suits digital businesses that are planning national reach. Provincial incorporation can be simpler if the company will mainly operate in one province. The Government of Canada’s overview highlights the nationwide carry-on-business right and recognition benefits of federal incorporation.
If the company goes federal, it should follow Corporations Canada’s step-by-step guide: pick a name or a numbered company, draft articles, list directors, and set the registered office. Everything can be filed online, so there is no need to visit a government building. The official guide lays out the full sequence clearly.
For a custom name, run a NUANS search to check conflicts with existing corporate names and trademarks; this is integrated into the filing flow for federal incorporations. If speed matters, a numbered name is allowed and you can brand a separate trade name later.
Something else every company trying to enter the Canadian economy is to follow all the specific laws for their sector. In the case of online casinos, for example, those are only allowed at a provincial level. That means, they can only register in certain parts of the country. Ontario, for example, is an open market for the field, where they must be registered with the AGCO and sign an operating agreement with iGaming Ontario, among other pre-requirements to operate legally.
Get tax-ready and ship with compliance baked in
Most Canadian businesses must register and charge GST/HST once they exceed the CAD $30,000 small-supplier threshold in a single calendar quarter or over the last four consecutive quarters. Registration is required as of the supply that pushes the company over the line.
In the case of foreign digital platforms or non-resident vendors selling to Canadian consumers, a special GST/HST registration and a collection measures may apply once the company’s threshold amount exceeds CAD $30,000 in a 12-month period. The financial team of the corporation must review CRA’s digital-economy guidance to determine which pathway fits their model better.
As digital companies usually collect personal information, Canada’s federal privacy law (PIPEDA) applies. Build around the 10 fair information principles (accountability, consent, limiting, collection/use, safeguards, access, and more), and publish a clear privacy policy. The Office of the Privacy Commissioner’s resources are the starting point.
If the company’s intention is to operate in or market to Québec residents, Law 25 is relevant. It tightens consent, breach reporting, DPIA, and data-governance duties, including appointing a privacy lead. Align UX copy and backend processes accordingly.
Before sending commercial electronic messages (CEMs) like promo emails or SMS, the company must obtain express or valid implied consent, identify the business itself, and include a working unsubscribe button. CASL applies even to messages sent from outside Canada to Canadian recipients. Build consent capture and proof into your CRM from day one.
Due to Canadian special circumstances, after federal incorporation, the company must be registered in each province/territory where it has a physical presence. Also, it should confirm provincial sales taxes where applicable. Provincial portal will spell out their own thresholds and processes.
