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Frequently asked questions > Company > Business Corporation > Can I be a director of a company if I reside outside of Canada?

Can I be a director of a company if I reside outside of Canada?

Yes, in some cases. The possibility of being a director of a corporation when you reside outside Canada depends, among other things, on the law under which the corporation was incorporated.

For a company incorporated in Quebec under the Business Corporations Act , residency in Canada is generally not a requirement to be a director.

The situation is different for a corporation incorporated under the federal Canada Business Corporations Act . Generally, at least 25% of the directors must be Canadian residents. When the corporation has fewer than four directors, at least one of them must be a Canadian resident. Certain corporations may also be subject to specific requirements.

Therefore, a person residing abroad can be a director of a federal corporation, but the overall composition of the board of directors must meet the applicable residency requirements. A federal corporation with only one director cannot have as its sole director a person who is not a Canadian resident.

Beyond these requirements, the presence of a director residing abroad may raise certain practical or tax considerations depending on the company's activities and the director's situation.

In summary , a person residing outside Canada can generally be a director of a Quebec corporation. For a federal corporation, they can also be a director, but the requirements regarding the presence of directors who are Canadian residents must be met.

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