Canada Business Entry / Expansion Lawyer

Branch - Subsidiary - Incorporation - Partnership - Joint Venture - License - Franchise

For international commercial enterprises requiring Canadian legal services call 403-400-4092 or email Chris@NeufeldLegal.com

The determination of the appropriate business entry and structuring of one's business expansion into Canada will rely upon specific traits and commercial objectives of the corporate principals, the nature of the commercial activity to be undertaken in Canada, the method of financing, income tax ramifications and the potential liabilities related to those commercial activities.

A top-level assessment begins with a determination as to whether the business to be carried out in Canada should be conducted directly in Canada as the Canadian branch of its principal business from one’s home country or one should create a separate Canadian entity to carry on the business. This determination will be influenced by a number of critical considerations, including but not limited to:

the treatment of Canadian business income for tax purposes in one’s home country;
Canadian tax considerations, imposed by Revenue Canada;
the exposure of the parent company, and its world-wide business operations, to scrutiny and disclosure requirements to various levels of Canadian government;
the advisability of isolating the assets of the principal business from claims arising out of the business undertaken in Canada;
whether one or more parties will own the Canadian commercial enterprise; and
the potential availability of federal, provincial and municipal government grant and incentive programs (i.e., Alberta Advantage Immigration Program, CanExport SMEs, Global Skills Strategy).

If the Canadian business is to be undertaken from one’s home country, or a country other than Canada (for example, using one’s business entity in the United States of America), this Canadian branch operation must nevertheless be registered in each of the provincial and territorial jurisdictions within which it carries on business, together with complying with the specific laws, statutes and regulations of each jurisdiction, which can be very nuanced and demand distinctive reporting and operational procedures.

Meanwhile, establishing a Canadian-based business entity could have significant advantages, how you structure your business plays a critical role in its prosperity and success in Canada. Although the terms corporation, foreign subsidiary, partnership, limited partnership, co-ownership, joint venture and unlimited liability company may appear to be mere words, to a business lawyer they are the cornerstones for launching a successful new business enterprise. Each of these legal constructs provides its own set of tools and challenges through which international business owners will ultimately determine the future of their labours. As such, selecting the appropriate legal form of business enterprise is important, yet it is merely the starting line from which a long and arduous race is to be commenced.

Nevertheless, this is but the beginning of the decisions that need to be made when pursuing entry into Canada, with everything from procuring C11 Significant Benefit Work Permits, Intra-Company Transfers (incl. C12 Work Permits), and Provincial Nominee Programs (i.e., Alberta Advantage Immigration Program), to contractual arrangements and leasing agreements, to employment and independent contractor agreement, to name but a few areas of substantial legal consequences when expanding one's international business into Canada.

As such, when your international business seeks the professional services of an experienced Canadian business lawyer to facilitate its entry into Canada's commercial market, contact our law firm for a confidential initial consultation at 403-400-4092 [western Canada], 905-616-8864 [eastern Canada] or Chris@NeufeldLegal.com.

Expanding your Business into Canada: Entry / Structure