Originally from:
Legal Aspects of Doing Business in North America - 2nd Edition - Loose leaf
Legal Aspects of Doing Business in North America - 2nd Edition - Electronic
Preview Page
Ontario
McLean & Kerr LLP
Toronto, Ontario
Introduction
The purpose of this chapter is to provide a brief summary of the principal
Canadian federal and provincial legislation that must be considered by a foreign
business operator in connection with the establishment of a business operation in
Ontario, Canada.
Investment and Corporate Considerations
Investment Canada Act (Canada)
Under the Investment Canada Act (ICA), a federal statute, non-Canadians who
plan to establish a new business in Canada or who plan to acquire an existing
Canadian business are subject to the notification requirements and, in certain
circumstances, review under the ICA.
All new businesses established by non-Canadians are required to notify Industry
Canada either before or within thirty days after the establishment of the new
business. This notice must include the projected number of persons to be
employed in connection with the new Canadian business at the end of the
second full year of operation, the projected total amount to be invested during
the first full two years of operation, and the projected level of annual sales or
revenues of the new Canadian business during the second full year of operation.
Acquisitions of control by non-Canadians of an existing Canadian business that
do not exceed certain prescribed thresholds or that are not within prescribed
business sectors are also required to notify Industry Canada prior to or within 30
days of making the investment. The ICA contains detailed rules to determine
whether "control" of a Canadian business has been acquired. The notification
form is examined by Industry Canada, which will then send to the investor a
certification confirming that the investment is not subject to review.
An acquisition of control can be accomplished either directly or indirectly. A
direct acquisition occurs when the non-Canadian acquires a majority of the
voting shares of a corporation or acquires all or substantially all of the assets
Ontario
Introduction
Investment and Corporate Considerations
Taxation
Intellectual Property
Customs
Consumer Protection
Employment
McLean & Kerr LLP Toronto, Ontario
