The subsidiary is known as Atlas Elektronik Canada Ltd.
Products to be offered in Canada include maritime sonars and sensors, command-and-control systems for submarines and surface combatants, heavyweight torpedoes, torpedo countermeasures, mine warfare systems, unmanned underwater vehicles and coastal surveillance systems.
"The Atlas Elektronik Group possesses a proud heritage in serving navies with quality-assured products delivered within a firm fixed-price environment," said Rick Gerbrecht, head of Atlas Elektronik Canada.
"Our product portfolio will offer the Royal Canadian Navy both 'non-orphan' and mature capability into either warships or crafts of opportunity."
Atlas Elektronik Canada has headquarters in Victoria, British Columbia.
"We believe in a strong demand for Atlas products and capabilities to support Royal Canadian Navy," Dieter Rottsieper and Volker Paltzo, managing directors of the Atlas Elektronik Group said.
"We are happy to extend our presence in Canada and to establish a subsidiary. We look forward to creating new partnerships with Canadian authorities and companies."