Embarking on a business venture in Canada opens up many opportunities, but knowing how to navigate the legal and regulatory framework is crucial to success.
Get equipped with the knowledge for a seamless transition – from selecting the right business structure to understanding income and sales taxes, dealing with customs duties, and knowing the regulations around foreign investments. Explore key areas such as competition laws, securities regulations, immigration policies, employment laws, real estate investment options, privacy and data protection, and intellectual property rights.
Miller Thomson is your go-to resource to establishing and growing your business in Canada. Reach out to our team of legal professionals for insights into the business environment and market trends.
Take a deeper dive into the key aspects of doing business in Canada
Government and Legal System
Canada is a constitutional monarchy and parliamentary democracy, with a judiciary that enjoys independence from the government in its decision-making powers.
Quebec Civil Law and Quebec Language Compliance
Special considerations are involved in establishing and carrying on business in Quebec. First, Quebec’s legal system is based on a civil law system, and second, Quebec’s official language is French.
Business Organizations
There are a number of different legal vehicles through which a foreign corporation or other foreign entity may carry on business in Canada.
Income Tax
Residents of Canada are taxed on their worldwide income, while non-residents pay tax on Canadian source income.
Sales Taxes
The Federal government imposes a 5% value-added tax (GST) on most goods and services. Some provinces impose a provincial retail sales tax while others harmonize their provincial retail sales taxes with the federal GST.
Payroll Taxes
Employers in Canada are required to pay Canada Pension Plan contributions and Employment Insurance premiums. Certain provinces also impose payroll taxes or premiums.
Customs and International Trade
Importers in Canada pay customs duties and GST based on the tariff classification and value of goods upon entry.
Foreign Investment Review
Foreign investments in Canada are regulated under the federal Investment Canada Act. Its purpose is to encourage foreign investment in Canada by non-Canadians on terms beneficial to Canada.
Competition Law
The Competition Act governs a variety of business conducts, including misleading and deceptive advertising, deceptive telemarketing, contests and competition issues.
Securities Law
Each of Canada’s 10 provinces and three territories is responsible for and has its own system of securities regulation, and its own securities regulatory authority.
Immigration
Individuals require a valid work permit to work in Canada, subject to certain exemptions.
Employment
Employment relationships in Canada are affected by various sources, including legislation, contracts and common law.
Real Estate Investment
Navigating Canada’s real estate market requires an understanding of the registration systems, title insurance, ownership restrictions for non-residents, and varied land transfer taxes.
Privacy, Data Protection, and Cybersecurity
The collection, use and disclosure of personal information by private sector entities in Canada are governed by the Personal Information Protection and Electronic Documents Act.
Intellectual Property
Intellectual property is a valuable asset for many corporations, making it essential to understand the rights that fall under the umbrella of intellectual property rights in Canada – including copyright, trademarks and patents.
