1. INTRODUCTION -

This Guide to Doing Business in Canada was initially developed to assist our clients. We are pleased that it has also been very helpful for many others, including senior managers of non-Canadian business enterprises who are considering setting up a business in Canada, or who are already managing a business here.

In particular, it provides information for those enterprises that are considering:

- Carrying on business in Canada through a branch operation;

- or Incorporating a “subsidiary” corporation to carry on business in Canada.

This Guide describes some of the major aspects of Canadian law that must be considered when establishing, acquiring or operating a business in Canada. Each of the Canadian provinces and territories has its own laws governing the carrying on of business within that jurisdiction. For example, the Ontario Business Corporations Act (OBCA) is applicable to corporations incorporated in Ontario. In addition, the Canada Business Corporations Act (CBCA) governs federally incorporated businesses. Despite the potential for great variety between jurisdictions, the various provincial and territorial business corporation acts generally reflect the provisions of the CBCA. This Guide focuses on the applicable laws of Ontario and of Canada.