Canadian Business Expansion Incorporation

Doing what is legally best for your business and its advancement into Canada, as opposed to protecting prior legal work.

Contact Neufeld Legal PC at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Undertaking the appropriate incorporation and business structuring when expanding one's commercial enterprise into Canada is critical to navigating around avoidable complexities and problems, while optimizing opportunities that are available through decisive corporate structuring within the Canadian system. There are numerous legal considerations that need to be properly navigated and designed specific to the particular business operations, and potential future developments as one's Canadian business expands.

There are numerous considerations that need to be assessed in relation to incorporation for international commercial enterprises engaging in Canadian business, including:

• whether to incorporate a Canadian subsidiary company, as opposed to operating as an unincorporated branch office, of the foreign parent corporation;

• how to structure one's Canadian subsidiary company to optimize tax-driven advantages;

• whether to shift from an unincorporated branch office to a subsidiary company, and how to effectuate that shift in the most tax-efficient manner;

• how corporate structuring might be undertaken to optimize available tax credit opportunities (e.g., Scientific Research and Experimental Development (SRED) credits - more on foreign SRED credit eligibility), while protecting the foreign parent company's commercial interests; and

• what other corporate and tax strategies might be available that could be deployed by the foreign parent company through its Canadian subsidiary company, by utilizing the latest corporate and tax

Meanwhile, long-held incorporation and related business practices have been supplanted in recent years by more advantageous corporate structuring options, which has particular significance for international commercial enterprises entering into Canada. This has significantly shifted the approach towards incorporation away from federal incorporations, instead undertaking a provincial incorporation in conjunction with other legislative and regulatory structures can create numerous corporate efficiencies and advantages that are generally preferable with international business owners. For existing foreign businesses that are operating in Canada as a federal corporation, serious consideration should be given to altering their corporate structure and institute an update corporate structure for their Canadian business operations [for more on moving away from federal incorporation].

To learn more about how our law firm stands apart when it comes to expanding your business into Canada, in what we do differently from most larger law firms and how this can properly protect and advance your Canadian commercial venture, contact our law firm today for a confidential initial consultation at Chris@NeufeldLegal.com or 403-400-4092 / 905-616-8864.  

Canadian Business Expansion Incorporation: Undertaking the appropriate incorporation and business structuring when expanding one's commercial enterprise into Canada is critical to navigating around avoidable complexities and problems, while optimizing opportunities that are available through decisive corporate structuring within the Canadian system. Read more.

 

Partnering with Canadian Business (Joint Ventures): Forming a partnership or joint venture with a Canadian business partner is a common strategy for international companies looking to enter the Canadian market, and thereby leveraging local business knowledge, established networks, and resources while sharing the risks and costs associated with a new venture in a foreign country. Read more.

 

Acquiring a Canadian Business: The acquisition of a domestic Canadian buisness (corporation or partnership) by an international corporate enterprise requires local Canadian legal representation that is not afraid of addressing key legal issues associated with the target business, which all too often exist, yet due to serious inherent conflicts that we have previously identified within larger law firms, which can pose serious post-acquisition legal and financial problems that we are focused on addressing. Read more.

 

Hiring Employees and Contractors in Canada: Canada has distinctive employment laws at both the federal and provincial level, which impacts the hiring of employees and contractors in Canada, with some serious inherent conflicts that we perceive within larger law firms, making them unwilling or incapable of properly representing new foreign corporate entrants in their legal representation of employee and contractor hiring. Read more.

 

Tax Considerations when Expanding Business into Canada: Expanding your international corporate business into Canada involves navigating a complex landscape of federal and provincial tax laws, with the resultant tax implications heavily dependent on the selected Canadian business structure, its Canadian business activities, and particulars related to the home country from which the expansion is being undertaken. Read more.