Can a non-resident corporation buy Canadian business assets without setting up a Canadian entity first?

Yes, a non-resident corporation can directly purchase Canadian business assets without first incorporating a Canadian subsidiary — there's no absolute legal requirement to set up a Canadian entity before buying assets here. But doing it that way has real consequences: a foreign corporation directly carrying on a Canadian business generally becomes subject to Canadian corporate tax on the income that business generates, may need to register to carry on business in Ontario, and typically needs to register for and collect GST/HST like any other operator, all directly in its own name rather than through a Canadian subsidiary.

This is why many non-resident buyers choose to set up a Canadian acquisition company anyway, even when it isn't strictly required: it can help manage how profits are eventually repatriated, how debt financing and interest deductibility are structured, and how liability is contained within a Canadian entity rather than exposing the foreign parent directly. Larger transactions can also separately trigger federal foreign-investment or competition-related review regardless of whether a Canadian entity is used.

Because the "no Canadian entity" route is legally possible but often more complicated in practice, weighing it against a Canadian acquisition vehicle with cross-border tax advice before structuring the purchase is worthwhile.