Company formation in Canada with a MSB License
The Canadian jurisdiction is one of those where the Fintech market has bloomed over the past three years. As forecasts say, this situation is not likely to change in the nearest future. The government of that country has focused on the Fintech sector with a commitment of $ 755 million. It is expected that this contribution will pay off and increase up to $2 billion. Undoubtedly, these indicators are identifiers of stability and prosperity.
– Income tax 15% on the first $47,630 of taxable income, plus. 20.5% on the next $47,629 of taxable income (on the portion of taxable income over 47,630 up to $95,259), plus.
– VAT rate in Canada is the Canadian Federal GST of 5%
– Since only 50% of capital gains are included in taxable income, the marginal tax rate for capital gains is 15.25%, or 50% of the marginal tax rate for ordinary income and due to the dividend tax credit, the marginal tax rate for eligible dividends is just 7.56%.
Company formation in Canada and license application.
Includes:
– Incorporation of the company
– Legal address in Canada for a year
– Registration with FINTRAC until obtaining full authorization
– Development of full package of inter AML policies and procedures (including AML Policy, Compliance program, KYC/KYB requirements, Ongoing monitoring requirements, Transaction reporting requirements, Compliance training program)
– Contact person for obtaining documents from the register for a year (company secretary)
– Power of attorney (translation, notarization)
– The act of registering the company at the notary
– State duties
– Bank account assistance
– Trademark registration
– Accounting. Fees depend on the number of transactions and general workload
Company formation – 5 weeks
Pre-registration with FINTRAC – up to 3 weeks
Registration with FINTRAC – up to 4 weeks
License obtainment – 2 month
Bank account opening – 7 weeks
The license issuer is Financial Transactions and Reports Analysis Centre of Canada.
List of requirements for the project implementation:
• Apostilled/Legalized copy of the passport of all the participants;
• Apostilled/Legalized Power of Attorney from all the participants to register a company;
• Apostilled certificate of criminal record from all the participants’ place of citizenship;
• Power of Attorney from the directors to employ people and to apply for the licenses;
• CV’s from all the participants;
• AML rules and procedures;
• Recommended initial share capital 10.000 USD;
Get Started with an EMI license
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