Canada SP vs OBCA
Legal Entity Comparison
Time of Update: 2026-03-31
SP is the most common form of legal entity in Canada, also known as a sole proprietorship. It is an enterprise operated solely by one person, who owns both the ownership and operational rights. SP does not need to participate in the public market, nor does it require shareholders and directors, so it can be operated independently by one person. In addition, SP also does not need to designate a legal representative, appoint local residents as directors or company secretaries, greatly simplifying the registration process. The minimum registered capital is only 1 Canadian dollar, and there is no need for capital verification, making SP the preferred choice for entrepreneurs and small business owners.
Canada Legal Entity Comparison
Canada Legal Entity Comparison
Basic Information
SP
OBCA
Ownership:
Private Ownership
Ownership:
Consolidated Ownership
Limited Liability:
Negative
Limited Liability:
Positive
Publicly Participates In Capital Market:
Negative
Publicly Participates In Capital Market:
Positive
Shareholder / Director / Secretary Requirements
SP
OBCA
Requirements For Shareholders:
No requirements
Requirements For Shareholders:
至少一名 translates to "at least one" in English.
Requirements For Directors ::
No requirements
Requirements For Directors ::
至少一名 translates to "at least one" in English.
Legal Representative Not Mandatory:
Positive
Legal Representative Not Mandatory:
Positive
Local Directors Not Mandatory:
Positive
Local Directors Not Mandatory:
Negative
Local Secretaries Not Mandatory:
Positive
Local Secretaries Not Mandatory:
Positive
Registered Capital Requirement
SP
OBCA
Minimum Registered Capital Requirement:
1. Starting from 1 Canadian dollar.
Minimum Registered Capital Requirement:
No minimum registered capital requirement.
Capital Injection Not Required:
Positive
Capital Injection Not Required:
Positive
Capital Injection Requirement:
N/A
Capital Injection Requirement:
N/A
Memo
SP
OBCA
Memo:
null
Memo:
At least 25% of the directors must be residents of Canada. If there are fewer than four directors, there is no requirement for a local resident to serve as a nominee director of the company.
CA
Canada
CI - Company Incorporation
Canadian Sole-Proprietorship Registration
From USD 500.00 / Company
Product Valid: Positive
Applicant Must Be Present: no
Applicable country/region
CA - Canada
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