British Columbia business and tax compliance sits across several offices: BC Registries for the company itself, the Canada Revenue Agency (CRA) for income tax, GST and payroll, the Ministry of Finance for the provincial sales tax (PST) and Employer Health Tax (EHT), and WorkSafeBC for workers' compensation. British Columbia does not use the HST, so a Vancouver business charges 5% GST and 7% PST separately. This page walks through each layer for owners in Vancouver, Surrey, Victoria and Kelowna, including those with U.S. or India-linked ownership.
British Columbia business and tax compliance: how do you incorporate a company?
- Request a name through BC Registries: $30, roughly 7 to 14 days, or $100 for priority approval in one to two business days. The reservation expires 56 days after approval.
- Set up the articles, using the sample articles or a lawyer's version.
- Prepare an incorporation agreement signed by each incorporator, listing shares taken; keep it in your records book rather than filing it.
- Apply to incorporate through Corporate Online ($350; $1,000 for an unlimited liability company) or the BC Business Registry.
- Receive the certificate of incorporation, notice of articles and your incorporation and business numbers.
After that, file the annual report ($43.39) within two months of the anniversary, hold an annual general meeting each year and file a notice of change of directors ($20) when directors change. The page does not describe a director residency rule, so confirm one before you appoint a sole non-resident director. For the federal alternative see our incorporation guide.
What is the BC transparency register?
Since October 1, 2020 private BC companies must keep a transparency register in their records office listing each significant individual: name, date of birth, last known address, citizenship or permanent residency, Canadian residency for income tax, when the person became or stopped being significant, and how they qualify. Companies update it within 30 days of receiving new or different information, record the reasonable steps taken when a shareholder will not answer, and must not give a copy to anyone other than permitted officials. The register is not public, but directors, police, tax authorities and certain regulators can inspect it. The province's page was last updated in September 2022, so check for changes to filing rules. Our annual returns and registers guide compares provinces.
Who must register for BC PST?
A business located in B.C. that sells or leases taxable goods, or provides software or taxable services, must register to collect PST. Out-of-province businesses selling to B.C. customers may have to register too. Registration is online through eTaxBC and can take up to 21 business days. The standard rate is 7% on the purchase or lease price of goods and services, with exceptions. The planned expansion of PST to certain professional and real estate services is paused, so do not register for those.
| PST collected per year | Reporting frequency |
|---|---|
| Over $12,000 | Monthly |
| Over $6,000 up to $12,000 | Monthly or quarterly |
| Over $3,000 up to $6,000 | Quarterly or semi-annual |
| $3,000 or less | Quarterly, semi-annual or annual |
Returns and payments must be received by the last day of the month after the reporting period; a weekend or B.C. statutory holiday moves the date to the next business day. A registered business that reports and pays on time can claim a commission of up to $198 per reporting period. PST is separate from GST; see our GST/HST guide.
How does the Employer Health Tax work?
The EHT applies to B.C. remuneration paid to employees and former employees. For the 2024 return and later, an employer with B.C. remuneration of $1,000,000 or less pays nothing. Between $1,000,000.01 and $1,500,000 the tax is 5.85% of the amount above $1,000,000. Above $1,500,000 it is 1.95% of total B.C. remuneration. Employers above the exemption must register through eTaxBC. For 2026 the instalments are June 15, September 15 and December 15, and the return and final payment are due March 31, 2027.
What corporate income tax applies in BC?
The CRA collects B.C. corporate tax. The lower rate is 2% on income eligible for the small business deduction, up to a $500,000 business limit, and the higher rate is 12%. A CCPC therefore pays about 11% combined on the first $500,000 (9% federal plus 2%) and 27% on other income (15% federal plus 12%). See the small business deduction guide.
Workers' compensation
WorkSafeBC says most businesses need coverage by law, with separate rules for employers, owners of incorporated companies, contractors and self-employed proprietors. Register early, because an injured worker can claim even when the employer failed to register.
Worked example: a Vancouver software company
Harbour Lane Software Ltd. is a Vancouver CCPC with $250,000 of 2027 active business income. Combined federal and B.C. tax is 11%, or $27,500. Its B.C. remuneration is $1.2 million, so EHT is 5.85% x ($1,200,000 - $1,000,000) = $11,700. If remuneration grew to $1.6 million, the tax would jump to 1.95% x $1,600,000 = $31,200. The company sells software to B.C. customers, so it also registers for PST at 7%.
Mistakes to avoid
- Charging HST in B.C.; charge GST and PST separately.
- Registering for PST on professional services during the pause, or failing to register for taxable software sales.
- Missing the 30-day update window on the transparency register.
- Ignoring EHT when payroll crosses $1 million, including remuneration paid to B.C. employees by associated employers.
- Skipping the annual report and risking dissolution.
A note for U.S.- and India-linked owners
U.S. companies selling software or goods to B.C. customers often trigger PST registration even without an office, similar to the economic nexus idea in the U.S.; see our U.S. sales tax registration for foreign sellers and cross-border remote work guide. An Indian company entering Canada through Vancouver can read the Indian company entering Canada page and the U.S. company entering Canada page for the structural choices. India's own indirect tax is covered in GST in India.
How we can help
We are a U.S. CPA firm in Aurora, Illinois. We handle the U.S. side of a British Columbia expansion and coordinate with your Canadian CPA, who files the PST, EHT, GST and T2 returns, and with your Indian Chartered Accountant. See our sales tax and GST compliance and business formation and registrations services.
Frequently asked questions
Does British Columbia use HST?
No. B.C. uses 5% GST and a separate 7% PST.
When is the BC EHT return due?
For the 2026 calendar year, March 31, 2027, with instalments on June 15, September 15 and December 15, 2026.
Is the transparency register public?
No. The B.C. government says the public does not have access to it.
How much does it cost to incorporate in BC?
$350 for most companies, plus a $30 name request. Unlimited liability companies pay $1,000.
Do I need PST if I sell only to customers outside B.C.?
A business located in B.C. that sells taxable goods or services in B.C. must register; the rules for out-of-province sales depend on where the buyer uses the product, so ask your Canadian CPA.
Official sources
- Government of British Columbia: How to incorporate a company
- Government of British Columbia: Transparency register
- Government of British Columbia: Register to collect PST
- Government of British Columbia: Report and pay PST
- Government of British Columbia: Employer health tax overview
- CRA: Corporation tax rates
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.