How to Hire in Canada Without Opening a Local Entity — A Step-by-Step Guide for Foreign Employers
How to Hire in Canada Without Opening a Local Entity — A Step-by-Step Guide for Foreign Employers
A Step-by-Step Guide for Foreign Employers
Expanding into Canada is one of the smartest moves a U.S. or international business can make.
The talent is highly skilled, the time zones align, and the costs are significantly lower than hiring in the U.S. But the moment companies start researching “How to hire in Canada”, they realize something:
Hiring a Canadian employee legally requires a Canadian entity.
That’s where many companies stop, assuming expansion is too expensive or too complicated.
But here’s the good news:
You do NOT need to open a Canadian subsidiary to hire Canadian talent.
You just need the right structure.
This guide will walk you through exactly how to do it — step by step.
Option 1: The Traditional Path, Opening a Canadian Entity
(Spoiler: almost nobody wants to do this .)
To legally hire a Canadian employee as a foreign company, you would need to:
- Register a Canadian corporation
- File provincial and federal taxes
- Set up payroll with the CRA
- Comply with multiple provincial labor standards
- Manage ongoing HR, benefits, and legal requirements
This can take 4–8 months and cost tens of thousands of dollars, plus ongoing legal fees.
If you're planning to hire 30–50 people in Canada, this may eventually make sense.
But for most businesses?
It’s unnecessary and expensive.
Which brings us to the smarter option.
Option 2: Hiring Through an EOR. The Fast, Legal, and Simple Way
An Employer of Record (EOR), like HireNorth, allows you to legally hire Canadian employees without opening a local entity.
Here’s how it works in simple terms:
- You find the talent
- We become their legal employer in Canada
- You manage their work
- We manage compliance, payroll, taxes, and benefits
It’s 100% legal, CRA-compliant, and designed for companies that want to expand quickly.
Onboarding can be done in as fast as 2–5 days.
Step-by-Step: How to Hire in Canada Using HireNorth
Step 1: Identify the Role You Want to Hire
You choose the Canadian candidate you want, or HireNorth can help you source qualified talent.
Step 2: Share the Offer Details
You tell us:
- Salary
- Job title
- Responsibilities
- Start date
- Any benefits you'd like to offer
We convert your offer into a legally compliant Canadian employment contract.
Step 3: HireNorth Onboards Your Employee
We handle:
- Contract signing
- Background checks (optional)
- Payroll setup
- Benefits enrollment
- Employee onboarding documents
Everything is compliant across the correct province.
Step 4: You Manage the Day-to-Day Work
Your Canadian employee works exactly like the rest of your team.
You set tasks, KPIs, communication styles — we simply handle the legal employment part.
Step 5: HireNorth Runs Payroll & Compliance Every Month
We manage:
- Payroll
- Tax withholdings
- Benefits
- Vacation rules
- Employment insurance
- Provincial labor law compliance
Zero admin work for your team.
Step 6: Scale Anytime
Hire one employee or build a full remote team, without additional legal complexity.
Why This Method Works
Hiring through an EOR gives you:
- Speed (hire in days, not months)
- Compliance (no legal risks)
- Cost savings (no need for a Canadian subsidiary)
- Flexibility (hire 1 or 20 people easily)
- Less bureaucracy (we handle everything)
And when you outgrow the EOR model?
You can always transition to your own Canadian entity later — with zero disruption to your employee.
Why Companies Choose HireNorth
There are many EOR platforms out there — but HireNorth is different because we are:
→ Canada-Only Experts
We don’t cover 100 countries.
We master ONE — Canada.
This means faster onboarding, accurate compliance, and better support.
→ Human Support, Not Just Software
You get real people handling payroll, HR, and compliance — not a chatbot.
→ Transparent Pricing
No hidden fees, no surprise charges, no confusing add-ons.
→ Built for U.S. and global companies hiring Canadians
Our platform is optimized for cross-border hiring between the U.S. and Canada.
→ Province-By-Province Accuracy
Every contract and payroll setup matches the exact rules of the employee’s province.
Ready to Hire in Canada Without the Barriers?
Hiring in Canada doesn’t need to be complicated.
With HireNorth, you can:
- Hire quickly
- Stay compliant
- Reduce costs
- Build a strong remote Canadian team
Book a call and hire your first Canadian employee with ease: https://hirenorth.io/
