How Long to Keep Business Records in Canada: Retention Periods

Invoices, bank statements, contracts, corporate registers: every business piles up records, and the same question keeps coming back. How long do you actually have to keep them? In Canada, the general rule is six years, but it hides several nuances: some documents must be kept permanently, deadlines start at different points, and shredding too early can be costly during a CRA or Revenu Québec audit. Here are the retention periods to know, with a summary table.

How long must business records be kept in Canada?

The general rule from the Canada Revenue Agency (CRA) and Revenu Québec is six years from the end of the last tax year the records relate to. It covers accounting records, invoices, bank statements, payroll records, and tax returns. One catch: if you file a return late, the six-year clock starts on the date you file.

Three important details:

• The famous "seven years" mostly comes from American practice; in Canada, the tax standard is six.
• Destroying records before the deadline requires written permission from the CRA (Form T137). Without it, you are exposed to penalties.
• Electronic records are allowed, as long as they are readable, unaltered, and accessible in Canada.

The record retention table

When in doubt about a specific document, use the safest reflex: six years, and permanent for anything tied to the corporation's legal structure.

What records must be kept forever?

Some documents are never thrown out while the corporation exists:

• the articles of incorporation and any amendments;
• the by-laws;
• the registers of directors, shareholders and securities;
• the resolutions and minutes in the minute book;
• shareholder agreements;
• share certificates and the transfer register.

These documents are your company's legal memory. They are requested during financing rounds, due diligence, a business sale, or a shareholder dispute. An incomplete minute book can delay a transaction or sink a financing. Keeping it current is exactly what Lexstart's annual update service handles, year after year.

Can the CRA audit beyond six years?

Yes, in some situations. The normal reassessment period is generally three years for a Canadian-controlled private corporation, but it disappears entirely in cases of misrepresentation attributable to neglect or fraud, or if you sign a waiver. That is why six-year retention is a legal minimum, not an immunity guarantee: for sensitive files (major transactions, reorganizations, disputes), many advisors recommend keeping records longer.

Can I destroy my 2019 records in 2026?

Generally, yes. For a tax year that ended on December 31, 2019, with a return filed on time, the six-year period expired at the end of 2025. In 2026, you can therefore usually destroy records from 2019 and earlier. Keep three exceptions in mind: permanent corporate documents, files under an ongoing audit or objection, and returns that were filed late.

Paper or digital: how should you store records?

The CRA and Revenu Québec accept electronic records. To stay compliant, your system must:

1. produce readable, complete copies of the original documents;
2. guarantee data integrity (no after-the-fact edits);
3. remain accessible in Canada for the full retention period;
4. let you produce the documents quickly on request.

Scanning paper invoices is allowed, but do it properly: an illegible or partial scan does not replace the original. And back everything up: losing your records does not release you from the obligation to produce them.

FAQ about keeping business records

What records do I need to keep for 7 years?

None, as a general Canadian tax rule. The standard is six years for tax and accounting records. The seven-year figure circulates because of US requirements and general prudence; following it does no harm, but six years is what the CRA requires.

What about records of a closed business?

After a corporation is dissolved, the CRA requires records to be kept for two years following the dissolution date. Permanent corporate documents should stay with the former directors during that period.

Is the rule the same for self-employed workers?

Yes. Self-employed individuals must keep their supporting documents for six years, just like corporations. Only the permanent corporate records do not apply to them, since they have no minute book.

Where are the official rules?

See the CRA page on keeping records and the Revenu Québec website. For unusual situations, talk to your accountant or a lawyer.

Stay compliant without thinking about it

Record retention is only one part of corporate compliance. Annual declarations to the REQ, resolutions, minute book updates: these obligations come back every year, and neglecting them gets expensive at the worst possible moment. Lexstart handles them at a fixed price: a complete annual update, a current digital minute book, and if you are just starting out, an online incorporation with every document done right from day one.