6 Easy Steps to Register A Fintech Company In Canada

In recent years, Canada has emerged as a vibrant hub for fintech innovation, attracting entrepreneurs and investors alike. With its stable economy, supportive regulatory environment, and tech-savvy population, Canada offers an ideal landscape for launching a fintech venture. If you’re looking to register a fintech company in Canada, you’re in the right place. In this article, we’ll walk you through everything you need to know to get started, from legal structures to regulatory frameworks and tax obligations.

Overview of the Fintech Industry in Canada

The fintech industry in Canada has experienced rapid growth, driven by a number of elements, such as the development of technology, shifting customer tastes, and helpful government regulations. Fintech businesses based in Canada are transforming the financial services industry by offering payment solutions, robo-advisors, blockchain technology, and peer-to-peer lending.

Legal Structures Available for Fintech Companies in Canada

When registering a fintech company in Canada, entrepreneurs have several legal structures to choose from, including:

Sole Proprietorship

A sole proprietorship is the most basic type of business organization, in which one person owns and runs the whole company. Sole proprietorships are simple to begin with but provide minimal liability protection.


A partnership is a type of organization where two or more individuals share ownership and management responsibilities. Partnerships provide little protection against liability, just as sole proprietorships.


A corporation is a distinct legal entity from its owners, providing limited liability protection. This structure is often preferred by fintech startups seeking external investment.


A cooperative is owned and managed by its members, and they also participate in decision-making and profit-sharing. While less common in the fintech industry, cooperatives offer a democratic business model.

How to Incorporate a Fintech Company in Canada?

Incorporating a fintech company in Canada involves several steps, but the process is streamlined to encourage entrepreneurship. Here’s a simplified guide:

Decide on a Business Structure 

Decide whether you want to register as a corporation, partnership, or sole proprietorship. Most fintech startups opt for corporation status as it offers liability protection and tax benefits.

Select a Name

Choose a unique name for your company that complies with Canadian regulations. Ensure that it is distinct from other businesses and has a legal component, such as “Inc.” or “Corp.”

Register Your Business 

Submit the required paperwork to the appropriate provincial or territorial government office. Information regarding the directors, shareholders, and registered office address of your business must be submitted.

Obtain Necessary Licenses:

Depending on the nature of your fintech services, you may need to obtain licenses or permits from regulatory authorities such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) or the Office of the Superintendent of Financial Institutions (OSFI).

Tax Registration

Register for taxes such as the Goods and Services Tax/Harmonized Sales Tax (GST/HST) with the Canada Revenue Agency (CRA). In the event that you employ people, you could also need to register for payroll taxes.

Create a Business Bank Account

Create a separate bank account for your business and keep your personal and business finances apart. This is crucial for handling finances and demonstrating financial transparency.

Tax Obligations for Fintech Companies in Canada

Fintech companies in Canada are subject to various tax obligations, including corporate income tax, GST/HST, and payroll taxes. Here’s a brief overview:

  • Corporate Income Tax: Fintech corporations are taxed on their worldwide income at federal and provincial/territorial levels. Canada offers competitive corporate tax rates and incentives for research and development activities.
  • GST/HST: Fintech enterprises must register for GST/HST if their annual worldwide taxable supply exceeds $30,000. GST is levied on most goods and services, while HST is applicable in provinces where the GST and sales tax have been harmonized.
  • Payroll Taxes: Payroll taxes on employee wages, like as income tax, CPP payments, and Employment Insurance (EI) premiums, must be withheld and remitted by employers.

Licenses or Permits Needed to Operate a Fintech Business in Canada

Depending on the nature of your fintech activities, you may need to obtain specific licenses or permits from regulatory authorities. For example:

  • Money Services Business (MSB) Registration: Necessary for companies that carry out financial operations like currency exchange, money transportation, or payment processing.
  • Securities Licenses: If your fintech company offers investment services or operates a crowdfunding platform, you might be required to obtain licenses from securities regulators.
  • Data Protection Compliance: Given the sensitive nature of financial data, fintech companies must comply with data protection regulations such as Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA).

Simplify Your Registration Process with IncPass

Incorporating a fintech company in Canada includes negotiating legal intricacies and administrative difficulties. Nonetheless, the procedure might go smoothly with the correct assistance. That’s where IncPass comes in.

IncPass offers a comprehensive suite of business registration services tailored to fintech entrepreneurs. From registering your company and obtaining necessary permits to managing tax obligations, IncPass streamlines the incorporation process, allowing you to focus on growing your business.

With IncPass, you gain access to:

  1. Efficient Business Registration: Simplify the incorporation process with expert guidance and support at every step.
  2. Tax Registration Services: Ensure compliance with tax obligations by leveraging IncPass’s expertise in GST/HST registration and other tax-related services.
  3. Virtual Office Solutions: Establish a professional presence in Canada with virtual office solutions, including mail forwarding and telephone answering services.


Starting a fintech business in Canada presents fascinating chances for development and innovation. By understanding the legal, regulatory, and tax considerations involved, entrepreneurs can navigate the registration process with confidence. With the right legal structure, proper incorporation procedures, and compliance with licensing requirements, fintech startups can establish a solid foundation for success in Canada’s thriving fintech ecosystem.


What are the key regulatory bodies governing fintech companies in Canada?

Key regulatory bodies include the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the Office of the Superintendent of Financial Institutions (OSFI), and the Canadian Securities Administrators (CSA).

Can foreign entrepreneurs register a fintech company in Canada?

It is possible for foreign entrepreneurs to register a fintech company in Canada. They might also have to designate a resident Canadian director and adhere to Canadian laws.

Does Canada offer any tax incentives for fintech companies?

Yes, Canada offers tax incentives for fintech companies, including the Scientific Research and Experimental Development (SR&ED) tax credit, which offers credits or reimbursements for approved research and development endeavours.

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