Can a Canadian business owner have a U.S. shareholder who simply does their side of the work while located in the U.S?
By Corporations Canada | July 14, 2011
Can a Canadian business owner have a U.S. shareholder/ partner, who simply does their side of the work while located in the U.S.? Are there any requirements to first create a U.S. subsidiary before adding U.S.shareholders/ partners? Or is it as easy as just adding their name to the shareholder agreement?
Corporations Canada answered:
Assuming that your business is incorporated, having a U.S. shareholder is a simple matter of adding the individuals name to a shareholder agreement. It is not necessary to create a U.S. subsidiary to do so.
In certain industries such as uranium, book publishing and certain media, there is a requirement that 50 per cent of the business is Canadian owned, but outside these particular industries there is no such requirement.
Also, most jurisdictions in Canada require that 25 per cent of the directors of Canadian corporations be Canadian residents.