Canada Post-Incorporation Checklist: CRA Accounts, Records & First-Year Setup

Incorporating a company in Canada is only the first step. After incorporation, directors and shareholders must complete several mandatory post-incorporation compliance actions to ensure the corporation remains in good standing with Canadian authorities.

This Canada post-incorporation checklist explains what must be done after incorporation, how Canada Revenue Agency (CRA) requirements apply, and how to avoid first-year compliance risks—particularly for foreign-owned and holding companies.

1. Confirm Your Canada Business Number (BN)

Every corporation in Canada must have a Business Number (BN) issued by the Canada Revenue Agency.

• Federal corporations generally receive a BN automatically upon incorporation

• Provincial corporations may need to register separately with the CRA

The BN is required for all Canadian tax program accounts, payroll, and GST/HST registrations.

Reference (CRA – BN registration)

2. Register Required CRA Program Accounts in Canada

Depending on business activities, the following CRA accounts must be registered.

Corporate Income Tax Account (RC)

• Automatically linked to the BN

• Mandatory for all Canadian corporations, including dormant companies

• Requires filing an annual T2 Corporate Income Tax Return

In Canada, no-activity companies are still required to file.

GST/HST Account (RT) – If Applicable in Canada

GST/HST registration is required in Canada if:

• Worldwide taxable revenues exceed CAD 30,000 in a 12-month period, or

• The company voluntarily registers to claim input tax credits

This commonly applies to consulting, digital services, SaaS, and cross-border activities.

Reference (CRA – GST/HST rules)

Payroll Account (RP) – If Hiring in Canada

A payroll account is required before paying:

• Employees

• Directors’ fees

• Bonuses or taxable benefits

This covers Canadian income tax withholdings, CPP, and EI.

Import-Export Account (RM) – If Trading Goods in Canada

Required for companies importing or exporting goods through Canada and used by the Canada Border Services Agency.

3. Maintain Statutory Corporate Records in Canada

Canadian corporate law requires companies to maintain proper statutory records (minute book).

Required records in Canada include:

• Certificate and Articles of Incorporation

• Share register and issued share details

• Director and officer registers

• Shareholder and director resolutions

• Annual meeting minutes

• Beneficial ownership register (Individuals with Significant Control)

These records must be accurate, current, and available for inspection by regulators or banks.

Reference (Corporations Canada – corporate records)

4. Open a Canadian Corporate Bank Account

Canadian banks apply enhanced KYC and AML checks, particularly for:

• Non-resident shareholders

• Holding or IP companies

• Cross-border structures

Banks typically require:

• Incorporation documents

• CRA Business Number

• Corporate records

• Beneficial ownership disclosure

• Clear business activity explanation

Incomplete CRA or corporate records are a frequent cause of bank account refusal in Canada.

5. Set Up Accounting & Choose a Canadian Fiscal Year-End

Fiscal Year-End in Canada

• First fiscal year may be up to 53 weeks

• December 31 is the most common choice

Accounting Obligations

• Maintain proper accounting books

• Track GST/HST and payroll obligations

• Retain records for at least 6 years, as required by the CRA

Poor bookkeeping significantly increases audit exposure in Canada.

6. Understand First-Year Tax Filing Deadlines in Canada

Corporate Income Tax (T2)

• Filing deadline: 6 months after fiscal year-end

• Tax payment deadline: 2–3 months after year-end, depending on eligibility

GST/HST Returns (Canada)

• Monthly, quarterly, or annual filings

• Nil returns must still be submitted

Payroll Filings (Canada)

• Ongoing remittances

• Annual T4 and T4 Summary filings

Late filings automatically trigger penalties and interest under Canadian tax law.

7. Ongoing Federal and Provincial Compliance in Canada

Canadian corporations must also:

• File annual returns with Corporations Canada or the provincial registry

• Update director, address, or share changes

• Renew any applicable business licenses

Failure to comply may result in administrative dissolution.

8. Preparing for CRA Reviews and Audits in Canada

New corporations in Canada are commonly reviewed within their first 12–24 months.

Common triggers include:

• GST/HST refund claims

• Foreign ownership or related-party transactions

• Inconsistent reporting

• Weak documentation

Strong first-year compliance reduces audit risk substantially.

FAQs: Canada Post-Incorporation Compliance

1. Do Canadian companies need to file taxes if there is no business activity in Canada?

Yes. All Canadian corporations must file an annual T2 corporate tax return, even if there is no income or activity.

2. When is GST/HST registration mandatory for a company in Canada?

GST/HST registration in Canada becomes mandatory once taxable revenues exceed CAD 30,000 within any 12-month period.

3. Can non-residents own and manage a company incorporated in Canada?

Yes. Non-residents may own Canadian companies, though banking, tax compliance, and director residency rules in Canada may vary by jurisdiction.

4. What records must a corporation keep after incorporation in Canada?

Canadian corporations must maintain statutory records, beneficial ownership registers, and accounting records for a minimum of 6 years.

5. What happens if post-incorporation compliance is ignored in Canada?

Non-compliance in Canada can lead to penalties, interest, CRA audits, bank account refusal, and possible dissolution of the corporation.