The reset: CEPA talks, a trade target and a Team Canada mission
The India-Canada corridor has moved fast in 2026. On March 2, 2026, the two countries launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with Terms of Reference signed by India's Commerce and Industry Minister Piyush Goyal and Canada's Minister of International Trade Maninder Sidhu, and a stated goal of USD 50B in bilateral trade by 2030 (News On AIR). In June 2026, Prime Ministers Carney and Modi reaffirmed their objective of concluding the negotiations in 2026 (Prime Minister of Canada). The fifth round ran in Ottawa from October 5 to 9, 2026 (News On AIR).
Then Canada came to India. A Team Canada trade mission led by Minister Sidhu visited Mumbai and Bengaluru from October 12 to 17, 2026, focused on aerospace and space, clean technologies, ICT, life sciences, forestry and wood products, and agri-food. Bilateral trade reached CAD 30.4B in 2025, and both sides share the goal of doubling it by 2030 (Trade Commissioner Service).
What this means for an Indian company: the door is open, but the agreement is not yet concluded. Plan on today's rules and treat the CEPA as upside, not as your business case.
Governments write trade agreements. People sign contracts. Start on the people now.
Entry routes from India to Canada
There are four practical ways in. Choose the one that matches how your Canadian buyer likes to buy.
| Route | Best for | What you need first | Investment Canada Act | My note |
|---|---|---|---|---|
| Export through a Canadian importer or distributor | Goods with proven demand and an importer ready to order | A Canadian importer of record set up with the CBSA, including CARM registration (CBSA) | Not triggered if you only sell to a Canadian importer | The cheapest test of real demand |
| Sales office or subsidiary | Software, services and companies with signed or near-signed buyers | Federal or provincial incorporation, directors, a bank account | Notification, before or within 30 days after (ISED) | Incorporate after the first buyers, not before |
| Joint venture with a Canadian partner | Regulated sectors, projects, distribution-heavy categories | Partner shortlist, term sheet, governance | Depends on structure and control; ask counsel | Decision rights and exit in writing on day one |
| Acquisition | Buying customers, licences and a team at once | Target list, diligence, financing | Notification, or review above the thresholds (ISED) | Watch for revenue that depends on the founder |
On the Indian side, putting money into a Canadian company is overseas investment under the Foreign Exchange Management (Overseas Investment) Rules, 2022, handled through your authorised dealer bank (Reserve Bank of India). Sequence it early with your bank and chartered accountant.
Investment Canada Act basics
The Investment Canada Act (ICA) applies when a non-Canadian starts or buys a Canadian business. In plain English:
- Starting a new business. It is notifiable "at any time prior to implementation, or within 30 days thereafter" (ISED). A notification is a filing, not an approval process, unless the business falls into a cultural sector where a review can be ordered.
- Buying a business. Acquiring control is notifiable and becomes reviewable above set thresholds. For 2026 the review threshold is C$1.452B in enterprise value for private-sector WTO investors, C$2.179B for trade agreement investors, and C$578M in asset value for state-owned WTO investors (ISED). For most mid-market deals, that means a notification, not a net benefit review.
- National security. This is a separate track. New businesses and investments of any size, including stakes well below control, may be subject to national security review (Osler).
This is a plain-English summary, not legal advice. Your Canadian counsel files; I make sure there is a deal worth filing.
Choosing a province
Choose the province where your first ten buyers, your partners and your talent are. Then check the corporate rules, because they differ.
| Option | Resident director rule | When it fits |
|---|---|---|
| Federal corporation (CBCA) | At least 25% of directors must be resident Canadians; with fewer than four directors, at least one must be (Canada Business Corporations Act, s. 105) | You want a federal name and operate across several provinces, and you have a resident Canadian director |
| Ontario corporation | Resident Canadian director requirement removed on July 5, 2021 (Bennett Jones) | Buyers in Toronto and the Greater Toronto Area; a foreign-only board at the start |
| British Columbia, Alberta, Quebec, Nova Scotia, New Brunswick | No director residency requirement (Bennett Jones) | Your buyers, partners or sector cluster are there |
I built 14+ years of my career in Toronto, so I am biased toward Ontario for many files. The right answer is still wherever your buyers are. Confirm the current rules for your chosen province with a Canadian lawyer before you incorporate.
Business entry vs immigration: know the difference
Many "start a business in Canada from India" searches are really immigration questions. I do not advise on immigration, and I am not the right fit if the goal is residence. What I can tell you is where the line sits for business travel.
Canada treats someone as a business visitor when they are not entering the Canadian labour market and the primary source of their pay for the activity stays outside Canada. Examples include attending business meetings, trade conventions and exhibitions that do not sell to the public, buying Canadian goods and services, and after-sales service under a warranty or sales agreement (Immigration, Refugees and Citizenship Canada).
Running the Canadian office day to day is a different question. Take it to a licensed Canadian immigration lawyer or regulated consultant. Keep the two plans separate: a business built to win customers, and an immigration plan run by a licensed professional.
Step by step: India to Canada in 90 days
- Days 1–10: decision brief. Product, first Canadian segment, target province, three success numbers and the conditions under which we stop.
- Days 10–20: route and price. Export, subsidiary, joint venture or acquisition, chosen from the buyer list. Landed price checked against what Canadian buyers already pay.
- Days 15–30: engagement first. Engagement letter and NCNDA signed before any introduction. Materials rebuilt for a Canadian buyer.
- Days 20–35: compliance sequence. Overseas investment steps with your Indian bank, ICA notification timing and incorporation plan with Canadian counsel.
- Days 30–60: buyer and partner rounds. Meetings with importers, distributors and named accounts, in person where it counts. I make the calls myself.
- Days 60–80: terms. Distribution, partnership or purchase terms negotiated with counsel: territory, exclusivity, targets and exit.
- Day 90: go or no-go, in writing. Then 90 days of execution: signatures, first orders, and incorporation if the numbers justify it.
Proof: a Canadian who was born in India
I am a Canadian citizen, born in India, raised in Jeddah, built in Toronto and now based in Dubai. I spent 14+ years in Toronto real estate, with USD 300M in personal sales between 2010 and 2024, and launched my first book, Beyond Riches with Income Properties, at the Toronto Fall Home Show in 2018. As Editor-in-Chief of Living in Toronto magazine, I ran a 10,000-copy edition that was distributed in India. The lesson stayed with me: Canadian opportunities are explained to Indian families long before anyone lands in Toronto, and whoever explains them well earns the trust.
Today I work the Canada corridor from both sides. I have met Canadian federal, provincial and municipal officials on Canada-UAE opportunities, and I run WeOpen.ca, with 26 Canada-UAE initiatives (Canada-UAE pipeline). As Head of Alliances and Growth at Galaxy Weblinks, a US software firm with 500+ engineers, I helped bring USD 30M of software work to signature. Galaxy Weblinks says: "Within months he had us in live conversations with a facilities-management group operating in 25+ countries, a Canadian trading business and a fourteen-company Dubai holding group, with USD 30 million of software work signed and more in pipeline." Read the software deals story and the India and Dubai hospital group story.
Related guides: Canada market entry, India to UAE, Canada UAE and the market entry hub.
Strategic advisory and introductions only. Not investment, legal or tax advice, and not an offer of securities. Regulated activities are handled by appropriately licensed firms.
He takes the deal from handshake to signed scope himself.
Adnan joined us to lead alliances and growth in the Gulf and Canada. Within months he had us in live conversations, with USD 30 million of software work signed and more in pipeline.
How to start, and what it costs
A wrong partner or distributor contract costs a year. The fit call costs USD 500.
My fit-first promise: if I decline your file, your USD 500 comes back in full. If I take it, every dollar is credited to your engagement.
Need the doors opened before you need advice? Network King Access 02 delivers prepared introductions to named decision-makers, from USD 50,000. Compare every service and price.
Frequently asked questions
Can an Indian citizen start a business in Canada?
Yes. A non-resident can own a Canadian corporation. Under the federal statute at least 25% of directors must be resident Canadians, but Ontario, British Columbia, Alberta, Quebec, Nova Scotia and New Brunswick do not impose a director residency requirement. Owning a business does not by itself give you the right to live or work in Canada; take that question to a licensed immigration professional.
How do I export to Canada from India?
Find a Canadian importer or distributor first, since the importer of record handles customs and must be set up with the Canada Border Services Agency, including CARM registration. Check whether your product is regulated in Canada, such as food, health or electrical goods, and price it against what Canadian buyers already pay. Exporting through an importer is the cheapest way to test demand.
What is the India Canada CEPA and when will it be concluded?
It is a proposed Comprehensive Economic Partnership Agreement between India and Canada. Negotiations launched on March 2, 2026, with a goal of USD 50B in bilateral trade by 2030. The leaders reaffirmed in June 2026 their aim of concluding talks in 2026, and the fifth round ran in Ottawa in October 2026. Until it is signed and in force, plan on current rules.
Do I need to file under the Investment Canada Act to open a Canadian subsidiary?
Yes, in most cases. Establishing a new Canadian business by a non-Canadian is notifiable at any time before implementation or within 30 days after. A notification is a filing, not an approval, unless the business is in a cultural sector where a review can be ordered. National security provisions can apply to investments of any size. Your Canadian counsel should file it.
How do I start an import-export business in Canada from India?
Decide which side you control. If you are the Indian exporter, sign a Canadian importer or distributor. If you are setting up the Canadian importer yourself, incorporate, register it with the CBSA and CARM, file the Investment Canada Act notification, and line up a customs broker. Either way, secure two or three committed Canadian buyers before you commit to inventory or a lease.
Which Canadian province is best for an Indian company?
The province where your first buyers and partners are. Many Indian companies look at Ontario for Toronto's market, and Ontario removed its resident Canadian director requirement in 2021. British Columbia, Alberta, Quebec, Nova Scotia and New Brunswick also have no director residency requirement. A federal corporation needs at least 25% resident Canadian directors. Confirm current rules with a Canadian lawyer.
Does buying a business in Canada give me permanent residence?
Not automatically, and it is not a question I advise on. Immigration and residency follow their own programs and rules, run by Immigration, Refugees and Citizenship Canada. If residence is your goal, speak to a licensed Canadian immigration lawyer or regulated consultant first. I work with companies whose goal is Canadian customers, partners and signed contracts.
Test your Canada plan in a 15-minute fit call
Bring your product, your target province and your first buyers. If I decline the file, the USD 500 fee is refunded; if we proceed within 30 days, it is credited in full.
Sources
- News On AIR: India and Canada launch negotiations for a Comprehensive Economic Partnership Agreement (March 2, 2026)
- Prime Minister of Canada: Prime Minister Carney meets with Prime Minister Modi (June 16, 2026)
- News On AIR: India, Canada intensify CEPA talks, aim to conclude trade pact by end of 2026 (October 14, 2026)
- Trade Commissioner Service: Team Canada Trade Mission to India, October 12 to 17, 2026
- Canada Border Services Agency: Importing commercial goods into Canada
- Reserve Bank of India: Master Direction, Overseas Investment
- Innovation, Science and Economic Development Canada: Investment Canada Act guidance on new business notification
- Innovation, Science and Economic Development Canada: Investment Canada Act thresholds
- Osler: Federal government issues updated guidelines on national security review of foreign investments (2021)
- Justice Laws Website: Canada Business Corporations Act, section 105
- Bennett Jones: Ontario eliminates director residency requirements (July 2021)
- Immigration, Refugees and Citizenship Canada: Business visitors [R186(a)]
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