Ontario Business Incorporation Without the Need for a Resident Canadian Director

In a significant move, the province of Ontario, Canada, has made amendments to its incorporation regulations. As of July 5, 2021, Ontario-based corporations are no longer mandated to have a resident Canadian director on their board. 

Historically, Ontario corporations had to ensure that at least a quarter (25%) of their board of directors comprised of Resident Canadians. The term “Resident Canadian” specifically referred to either a Canadian Citizen or a Permanent Resident. It’s worth noting that a Canadian citizen living outside of Canada didn’t qualify as a Resident Canadian under this definition. 

However, with the introduction of Bill 213 in Ontario, this stipulation has been abolished. It’s important to highlight that this change is exclusive to corporations in Ontario. Federal corporations in Canada continue to have the requirement of having a Resident Canadian on their board.