Alberta Eases Director Residency Requirements

Very soon, an Alberta corporation will no longer be required to have any Canadian citizens on its board of directors.  In addition, director resident information will no longer be collected.  The move is a feature of Bill 22, Red Tape Reduction Implementation Act, 2020 ("Bill 22"), which received Royal Assent on July 23, 2020.  The parts of Bill 22 that include these new director residency and information requirements are expected to be proclaimed in force on March 29, 2021. 

Bill 22 is part of a larger Government of Alberta mandate to attract business by reducing costs and regulatory burden for Alberta businesses.  The removal of the director residency requirements should be a welcome change for non-Canadian entities seeking to incorporate in Alberta. Finding a Canadian citizen to serve on one's board had become a deterrent for some. These changes, combined with Alberta's historically lower tax rates, friendly business environment and well regarded corporate laws,