In: Economics
- What are the legal frameworks of enterprise in Canada?
Being a foreign entrepreneur looking to start a business in Canada should know the business environment in Canada. Considering the key factors such as tax and liability issues should be given first priority. There are certain recent amendments which are very helpful for establishing subsidiary business units.
A foreign entity can incorporate as a federal corporation under Canadian law. It can also incorporate as a provincial corporation under provincial law. This incorporations are very easy and does not need even government approval. Federally incorporated businesses are registered under The Canada Business Corporations Act.
Among the Board of Directors one must be a Canadian Resident. He should be present in the Board meeting physically if possible, or otherwise by elctronic means.
Protection of the environment is very essential. Causing any damage to the environment is liable to fine and even for improsonment.
The foreign company should have license and should register in each province or territory where they are proposed to carry out business.
In order to get the approval of the name of each jurisdiction, the service of the Canadian Resident Attorney is required. Additional branch taxes are also imposed on each foreign companies.
Residency requirments for directors, corresponding registration requirements, privacy obligations, language requirements, regulatary comapliance, etc. are comes under the multiple jurisdictions.
All work related documents must be provided to the employees in French.
In Canada, amalgamaion is a satutory means of combining two or more corporations. It does not include the concept of a surviving corporation which canot exist without merging with another one which is having highest turnover and reputation.
Income tax payment in Canada is based on residency of the tax payer and not based on his cityzenship.