Before Expanding Your Business in Ontario
is a wise business decision for many
reasons. Ontario and its financial center,
Toronto, are its most populous city
and province in Canada with about 13
million people and 2.8 million people,
respectively. Ontario represents an
attractive business market boasting
the following:
capital markets;
incorporation process;
markets; and
regime among other things.
Alternatives" study of international
business costs confirmed Canadian
business costs are among the lowest in
Ontario a top destination for foreign
direct investment in North America.
While it's certainly an appealing
business decision, you will also want
to consider the many other facets to
operating in this new location: selecting
the type of business entity, licensing and
registration requirements, as well as tax
and employment considerations. This
article provides businesses and investors
with insight into Ontario's economic
structure and its business regulatory
framework.
foreign businesses looking to expand
into Canada, each with its own benefits
and drawbacks.
Licensing is the simplest method of
expanding into Canada. A company can
avoid establishing a physical presence
by way of license agreement whereby the
licensor gives specific rights in some or
all of its property, usually intellectual
property to the licensee. The licensee
property in exchange for a fee or royalty.
Establishing a physical presence can
also be avoided by selling goods using
an agency or distributor agreement.
These methods differ in that an agent
will act on behalf of the foreign business,
whereas a distributor will buy goods
from the foreign business and offer them
for re-sale.
Another alternative is to open a
foreign branch office. This can have
certain tax advantages, as Canadian
losses can be claimed by the parent
company in its home jurisdiction.
However, it also means the foreign
company will be subject to Canadian
income tax on the income and liabilities
incurred by the Canadian branch.
A foreign company can also
incorporate a Canadian subsidiary.
Companies can be incorporated at either
the provincial or federal level. For
most purposes, federal and provincial
business corporations are able to conduct
business anywhere within Canada
her practice focuses primarily on business law and estate planning.
She also works with clients on matters pertaining to mergers and
acquisitions, business succession planning and employment law.
2000 - 145 King Street West
Toronto, Canada M5H 2B6
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