Canada (Ontario) vs Delaware, USA
Canada (Ontario) is £132 cheaper in year 1 and £220 a year cheaper after that.
| Canada (Ontario)Corporation | Delaware, USALLC (or C-Corp for VC funding)Start with Zenind | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £303 | £435 |
| Minimum, per year after | £130 | £350 |
| Typical year 1 | £2,006 | £1,220 |
| Government fee | £160C$300 articles of incorporation, online | £85$110 Certificate of Formation |
| Indirect setup | £13–284 | £0–380 |
| Running per year | £130–3,265 | £350–1,540 |
| Share capital | None | None |
| Rules | ||
| Directors | No local directorFederal incorporation has stricter rules. | No local directorYou need a registered agent in Delaware. |
| Remote setup | Through a providerRemote through a local agent. | Fully remoteAn EIN for foreign owners takes 2 to 6 weeks. |
| Audit | No audit if all shareholders agree in writing each year | No audit |
| Time to form | Same day online | 1 to 3 days (EIN extra) |
| Ease for foreign owners | 2/5 | 4/5 |
| Tax and banking | ||
| Corporation tax | 26.5%About 26.5% in Ontario. The small business rate is only for Canadian-controlled companies. | 21%An LLC pays no entity tax. A C-Corp pays 21% federal. |
| Dividend withholding | 25% dividend withholding, 5% to 15% by treaty. | 30% dividend withholding, 15% for UK individuals. |
| VAT / GST | 13%HST 13% in Ontario. | None |
| Banking | 2/5Major banks usually want a visit. | 3/5Mercury, Relay and Wise work remotely once you have an EIN. Traditional banks want a visit. |
| All company setup fees in Canada (Ontario) | All company setup fees in DelawareUse ZenindAd | |
Questions
Is Canada (Ontario) cheaper than Delaware for company setup?
Yes. Canada (Ontario) costs at least £303 in year 1, against £435 for Delaware.
Which is cheaper to run each year?
Canada (Ontario), at least £130 a year against £350 for Delaware.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
Canada (Ontario), in same day online. Delaware takes 1 to 3 days (EIN extra).
How does corporation tax compare?
Canada (Ontario): About 26.5% in Ontario. The small business rate is only for Canadian-controlled companies. Delaware: An LLC pays no entity tax. A C-Corp pays 21% federal.
Sources: Ontario · Justice Laws Canada · PwC · BDC · Delaware Division of Corporations