Importance Of Doing Business In Canada

Doing Business in Canada 2012
Finding Opportunities and Avoiding Pitfalls

Cover photo: Panoramic view of the City of Vancouver in British Columbia, Canada

Doing Business in Canada 2012
Finding Opportunities and Avoiding Pitfalls

mccarthy.ca

Managing Editor Robert W. F. Stephenson

IN MEMORIAM
This annual publication, like the ones before it, was edited by Robert Stephenson, a partner in our Business Law Group in Toronto, who passed away on February 12, 2012. Robert’s law practice spanned almost 35 years, all with our firm. In addition to carrying on a general corporate and commercial law practice, Robert had extensive experience in corporate lending and secured transactions, acting for both lenders and borrowers. He acted
The provincial governments have legislative jurisdiction over, among other matters, real and personal property, civil rights, WHEN ESTABLISHING OR ACQUIRING education, health care and intra-provincial trade and commerce. Certain aspects of these A BUSINESS IN provincial powers are delegated to municipal CANADA, ONE MUST governments, which enact their own bylaws. BE CONCERNED WITH THE FEDERAL LAWS AS WELL AS Both levels of government are based on THE LAWS OF THE the British parliamentary system. At the PROVINCES WITHIN federal level, the Prime Minister is the head of government; at the provincial level, the Premiers. WHICH THE BUSINESS WILL BE CONDUCTED. These individuals are the leaders of the political parties that have either the greatest number of seats in the House of Commons or the provincial legislatures, respectively — or that have, at a minimum, the support of a majority of the members of the House of Commons or provincial legislatures, respectively. When establishing or acquiring a business in Canada, one must be concerned with the federal laws as well as the laws of the provinces within which the business will be conducted. In nine of the 10 provinces and in the three territories, the legal systems are based on common law. In Québec, the legal
Certain statutory provisions restrict foreign investment and ownership in specific areas, including the financial services, air transportation, and broadcasting and telecommunications sectors. There are also foreign-investment disincentives for media and publishing. The ICA was amended in a number of significant respects, with e ect from March 2009. These amendments are reflected in the report below. Transactions involving “national security,” including minority investments, are now also reviewable. One of the ICA’s stated purposes is to encourage investment in Canada by non-Canadians, as this contributes to economic growth and employment opportunities. Two federal ministers are responsible for administering WHETHER A the ICA: the Minister of Industry and the FOREIGN INVESTOR Minister of Canadian Heritage. The Minister ESTABLISHES of Industry has appointed a Director of A CANADIAN Investments to advise and assist the OPERATION THROUGH Minister in administering the ICA for nonAN ACQUISITION cultural matters. OR BY STARTING UP A NEW CANADIAN If an investment by a non-Canadian relates BUSINESS, THE to a cultural business, the Minister of INVESTMENT MAY Heritage is responsible. Consequently, BE SUBJECT TO any required review process for cultural THE FOREIGN businesses as defined under the ICA will be INVESTMENT REVIEW done through Canadian Heritage instead of REQUIREMENTS OF Industry