Creation of Subsidiaries & Affiliates
A Canadian corporation whose controlling or sole shareholder is another corporation, is considered a subsidiary or affiliate company. In order to create a subsidiary company in Canada, there are a few steps that need to be taken. The business entity type must be chosen, authorized and the related corporate paperwork needs to be correctly drafted and filed with the appropriate authorities.
The level of ownership in a business by a connected legal entity, is what helps to determine if the business is considered to be an affiliate, associate, or subsidiary of a parent company.
In order to correctly create and register a Canadian subsidiary or affiliate company in Canada so that you may benefit from the most favourable outcomes, contact SamLaw. Our corporate legal and tax experts can help you examine all of your potential options of operating and/or expanding your business ownership in Canada.