Doing Business in Canada

• Doing Business in Canada, Our Doing Business in Canada Guide is a concise and practical overview of the country's legal and regulatory landscape and addresses key issues around starting a business in Canada in 2025 and beyond.

Guide | Resource Doing Business in Canada Our Doing Business in Canada Guide is a concise and practical overview of the country's legal and regulatory landscape and addresses key issues around starting a business in Canada in 2025 and beyond. Download the full guide

• Chapter 1: The Canadian Business and Investment Environment, The laws and political climate of a country help shape its business environment. In Canada, both federal and provincial governments have created a welcoming atmosphere for international businesses to flourish. Foreign investment in Canada is attractive because of its strong resilient economy, stable political system, abundance of natural resources and the ability to foster and attract a skilled workforce.
• Chapter 2: Establishing a Business in Canada, Foreign businesses operating in Canada can set up a branch office or establish a separate business enterprise. Tax considerations and liability often determine what business structure is best. In this chapter, you’ll learn about the most common structures used to start a business in Canada, including corporations, sole proprietorships, partnerships, joint ventures, franchises, and co-operatives.
• Chapter 3: Investment Policy, Foreign investment in Canada is primarily governed by the Investment Canada Act (ICA). It includes net benefit and national security reviews of certain investments by “non-Canadians” (businesses controlled by non-citizens or non-permanent Canadian residents through voting shares).
• Chapter 4: Competition / Antitrust Law, Canada’s Competition laws are governed by the federal Competition Act (the Act). The Act is administered and enforced by the Commissioner of Competition (the Commissioner) and the Commissioner’s staff, the Competition Bureau (the Bureau), part of the Innovation, Science and Economic Development Canada portfolio. The Canadian Competition Act applies to all business activities in Canada, with some exceptions.
• Chapter 5: Acquiring a Canadian Business, When acquiring a business in Canada, consider whether it is publicly listed or privately held and the mode of acquisition. Additionally, approvals under the Investment Canada Act or the Competition Act may be required, depending on the size of the transaction and its market impact. Read how to navigate business acquisition in Canada in this chapter.
• Chapter 6: Financing a Business Operation, A foreign investor seeking to raise capital for Canadian business operations can opt for debt financing, equity financing, or a combination of both.
• Chapter 7: Taxation, When doing business in Canada, consider federal and provincial tax implications. Canadian residents are taxed on worldwide income, while non-residents are generally taxed on specific sources of income within Canada.
• Chapter 8: Labour & Employment, Employment law in Canada is governed by the Canada Labour Code and, in nine provinces, common law. Québec is unique in that it is governed by the Civil Code of Québec, based on the French Napoleonic Code. Despite some provincial variations, there is considerable uniformity across the country in employment standards, workers’ compensation, occupational health and safety, labour relations, human rights, and prohibitions on harassment and discrimination in employment.
• Chapter 9: Pension & Employee Benefit Plans, The federal Canada Pension Plan (CPP) covers employees and the self-employed in all provinces except Québec, which provides the similar Québec Pension Plan (QPP). Both are mandatory social insurance plans. Provincial and territorial governments provide a variety of universal hospital and medical plans, and many employers opt to provide their employees with additional health and welfare plans for services, as well as company-sponsored pension or savings plans and benefit plans.
• Chapter 10: Directors’ and Officers’ Liability, Under the Canada Business Corporations Act (CBCA), directors and officers have two principal duties: a duty of care and a fiduciary duty of loyalty. While the liability of corporate directors and officers can vary by jurisdiction, the statutory duties found in the federal CBCA and provincial legislation are generally similar.
• Chapter 11: Executive Transfers and Immigration, Foreign nationals who want to work in Canada, even temporarily, must acquire a work permit, unless they qualify as business visitors or fall under a work permit exemption category.
• Chapter 12: Privacy Laws, Privacy in Canada is governed by various laws for the public, private, and health sectors, as well as Canada’s Anti-Spam Legislation (CASL). These laws can be federal and/or provincial and may be supplemented by common law considerations.
• Chapter 13: Protection of Intellectual Property, The protection of intellectual property is primarily a federal responsibility and is covered by four principal federal statutes: the Patent Act, Trademarks Act, Copyright Act, and Industrial Design Act. These are administered by the Canadian Intellectual Property Office of Industry Canada. However, matters like unauthorized trademark use or trade secret misuse fall under provincial jurisdiction. In some circumstances, the federal and provincial jurisdictions will overlap.
• Chapter 14: Information and Communications Technology, Companies wishing to operate in Canada’s information technology and communications sectors must comply with a number of legislative and regulatory requirements, such as CASL, Canada’s Anti-Spam Legislation.
• Chapter 15: Franchising, Franchising is a business model where a franchisor licenses their systems and methods to a franchisee, allowing them to operate a business using the franchisor’s trademarks. The franchisor also provides its know-how, expertise, and ongoing support in exchange for a continuous royalty fee. In Canada, there are three typical franchise structures: unit franchises, area development franchises, and master franchises.
• Chapter 16: Establishing a Business in Quebec: Practical Considerations, Canada is a top choice for businesses due to its stable government, independent judiciary, effective customs system, qualified and diverse labour force, and high standard of living. In this chapter, read about Québec’s thriving business environment, legislated by The Civil Code of Québec.
• Chapter 17: Dispute Resolutions, Disputes can happen at any time. If issues arise, there are two main options for resolution: going to court, or using alternative dispute resolution methods such as mediation and arbitration.
• Chapter 18: International Trade Law, Businesses should be aware of Canada’s international trade laws which can significantly impact their success in entering and operating in the country. Key areas explored in this chapter include sanctions, forced and child labour, export and import controls, national security reviews, international trade agreements, government procurement, and investment treaties.
• Chapter 19: Procurement, Government procurement in Canada has long been subject to trade agreements, and Canada actively promotes plurilateral and bilateral trade agreements. Recent trade agreements have expanded international trade access and extended the application of these agreements to territorial, provincial, municipal, academic, school, and hospital sectors.
• Chapter 20: Indigenous Legal Matters, Indigenous Peoples in Canada (First Nations, Inuit, and Métis) have Aboriginal rights, including treaty rights, which may cover title over significant areas of land. These rights must be considered when developing or financing a natural resource, mining, energy, or real estate projects, or any project requiring government permits or approvals.
• Chapter 21: Government Relations, Every business operating in Canada should understand the strategic benefits of working with the government. Canada is a federation with 10 provinces and three territories. The Constitution divides powers between the federal parliament and the provincial legislatures.
• Chapter 22: Government Ethics, Transparency and Political Law, Increased scrutiny and expectations for government transparency make it crucial for businesses to comply with ethics and transparency rules, as well as political laws. This helps mitigate reputational risks and protect current and future business opportunities.
• Chapter 23: National Security Law, “National security” is not specifically defined in Canadian law. Practically, it refers to any action or event that could significantly affect the health, safety, security, or economic wellbeing of Canadians, or the effective functioning of Canada’s governments.
• Chapter 24: Environmental, Social & Governance (ESG) Considerations, ESG considerations are increasingly important and central to business strategy in Canada. Companies are expected to adopt a strategy that addresses investor concerns about ESG issues and to clearly communicate their ESG initiatives in capital market disclosures.
• Chapter 25: Real Estate, Canadian real estate is primarily governed by provincial laws. Provinces delegate specific powers to municipalities, such as controlling land use, development, building permits and related health and safety matters. Real estate is also subject to federal laws.
• Chapter 26: Life Sciences, Canada has a well-developed life sciences sector with a robust regulatory framework overseen by both federal and provincial governments. The federal government regulates the safety and efficacy of health products throughout their life cycle, while the provinces and territories handle general healthcare legislation.
• Chapter 27: Agribusiness, In Canada, agribusiness includes all the steps a commodity goes through to reach the consumer. A major element of agribusiness is the agrifood industry, which has several subsectors: agriculture, fisheries and aquaculture, as well as food and beverage processing and distribution.
• Chapter 28: Cannabis, When the Cannabis Act came into force on October 17, 2018, Canada became the second country in the world to legalize the sale, possession and use of cannabis for recreational purposes, following the legalization of medical-use cannabis about twenty years earlier.

Chapter 1: The Canadian Business and Investment Environment The laws and political climate of a country help shape its business environment. In Canada, both federal and provincial governments have created a welcoming atmosphere for international businesses to flourish. Foreign investment in Canada is attractive because of its strong resilient economy, stable political system, abundance of natural resources and the ability to foster and attract a skilled workforce. Download Chapter 1

Chapter 2: Establishing a Business in Canada Foreign businesses operating in Canada can set up a branch office or establish a separate business enterprise. Tax considerations and liability often determine what business structure is best. In this chapter, you’ll learn about the most common structures used to start a business in Canada, including corporations, sole proprietorships, partnerships, joint ventures, franchises, and co-operatives. Download Chapter 2

Chapter 3: Investment Policy Foreign investment in Canada is primarily governed by the Investment Canada Act (ICA). It includes net benefit and national security reviews of certain investments by “non-Canadians” (businesses controlled by non-citizens or non-permanent Canadian residents through voting shares). Download Chapter 3

Chapter 4: Competition / Antitrust Law Canada’s Competition laws are governed by the federal Competition Act (the Act). The Act is administered and enforced by the Commissioner of Competition (the Commissioner) and the Commissioner’s staff, the Competition Bureau (the Bureau), part of the Innovation, Science and Economic Development Canada portfolio. The Canadian Competition Act applies to all business activities in Canada, with some exceptions. Download Chapter 4

Chapter 5: Acquiring a Canadian Business When acquiring a business in Canada, consider whether it is publicly listed or privately held and the mode of acquisition. Additionally, approvals under the Investment Canada Act or the Competition Act may be required, depending on the size of the transaction and its market impact. Read how to navigate business acquisition in Canada in this chapter. Download Chapter 5

Chapter 6: Financing a Business Operation A foreign investor seeking to raise capital for Canadian business operations can opt for debt financing, equity financing, or a combination of both. Download Chapter 6

Chapter 7: Taxation When doing business in Canada, consider federal and provincial tax implications. Canadian residents are taxed on worldwide income, while non-residents are generally taxed on specific sources of income within Canada. Download Chapter 7

Chapter 8: Labour & Employment Employment law in Canada is governed by the Canada Labour Code and, in nine provinces, common law. Québec is unique in that it is governed by the Civil Code of Québec, based on the French Napoleonic Code. Despite some provincial variations, there is considerable uniformity across the country in employment standards, workers’ compensation, occupational health and safety, labour relations, human rights, and prohibitions on harassment and discrimination in employment. Download Chapter 8

Chapter 9: Pension & Employee Benefit Plans The federal Canada Pension Plan (CPP) covers employees and the self-employed in all provinces except Québec, which provides the similar Québec Pension Plan (QPP). Both are mandatory social insurance plans. Provincial and territorial governments provide a variety of universal hospital and medical plans, and many employers opt to provide their employees with additional health and welfare plans for services, as well as company-sponsored pension or savings plans and benefit plans. Download Chapter 9

Chapter 10: Directors’ and Officers’ Liability Under the Canada Business Corporations Act (CBCA), directors and officers have two principal duties: a duty of care and a fiduciary duty of loyalty. While the liability of corporate directors and officers can vary by jurisdiction, the statutory duties found in the federal CBCA and provincial legislation are generally similar. Download Chapter 10

Chapter 11: Executive Transfers and Immigration Foreign nationals who want to work in Canada, even temporarily, must acquire a work permit, unless they qualify as business visitors or fall under a work permit exemption category. Download Chapter 11

Chapter 12: Privacy Laws Privacy in Canada is governed by various laws for the public, private, and health sectors, as well as Canada’s Anti-Spam Legislation (CASL). These laws can be federal and/or provincial and may be supplemented by common law considerations. Download Chapter 12

Chapter 13: Protection of Intellectual Property The protection of intellectual property is primarily a federal responsibility and is covered by four principal federal statutes: the Patent Act, Trademarks Act, Copyright Act, and Industrial Design Act. These are administered by the Canadian Intellectual Property Office of Industry Canada. However, matters like unauthorized trademark use or trade secret misuse fall under provincial jurisdiction. In some circumstances, the federal and provincial jurisdictions will overlap. Download Chapter 13

Chapter 14: Information and Communications Technology Companies wishing to operate in Canada’s information technology and communications sectors must comply with a number of legislative and regulatory requirements, such as CASL, Canada’s Anti-Spam Legislation. Download Chapter 14

Chapter 15: Franchising Franchising is a business model where a franchisor licenses their systems and methods to a franchisee, allowing them to operate a business using the franchisor’s trademarks. The franchisor also provides its know-how, expertise, and ongoing support in exchange for a continuous royalty fee. In Canada, there are three typical franchise structures: unit franchises, area development franchises, and master franchises. Download Chapter 15

Chapter 16: Establishing a Business in Quebec: Practical Considerations Canada is a top choice for businesses due to its stable government, independent judiciary, effective customs system, qualified and diverse labour force, and high standard of living. In this chapter, read about Québec’s thriving business environment, legislated by The Civil Code of Québec. Download Chapter 16

Chapter 17: Dispute Resolutions Disputes can happen at any time. If issues arise, there are two main options for resolution: going to court, or using alternative dispute resolution methods such as mediation and arbitration. Download Chapter 17

Chapter 18: International Trade Law Businesses should be aware of Canada’s international trade laws which can significantly impact their success in entering and operating in the country. Key areas explored in this chapter include sanctions, forced and child labour, export and import controls, national security reviews, international trade agreements, government procurement, and investment treaties. Download Chapter 18

Chapter 19: Procurement Government procurement in Canada has long been subject to trade agreements, and Canada actively promotes plurilateral and bilateral trade agreements. Recent trade agreements have expanded international trade access and extended the application of these agreements to territorial, provincial, municipal, academic, school, and hospital sectors. Download Chapter 19

Chapter 20: Indigenous Legal Matters Indigenous Peoples in Canada (First Nations, Inuit, and Métis) have Aboriginal rights, including treaty rights, which may cover title over significant areas of land. These rights must be considered when developing or financing a natural resource, mining, energy, or real estate projects, or any project requiring government permits or approvals. Download Chapter 20

Chapter 21: Government Relations Every business operating in Canada should understand the strategic benefits of working with the government. Canada is a federation with 10 provinces and three territories. The Constitution divides powers between the federal parliament and the provincial legislatures. Download Chapter 21

Chapter 22: Government Ethics, Transparency and Political Law Increased scrutiny and expectations for government transparency make it crucial for businesses to comply with ethics and transparency rules, as well as political laws. This helps mitigate reputational risks and protect current and future business opportunities. Download Chapter 22

Chapter 23: National Security Law “National security” is not specifically defined in Canadian law. Practically, it refers to any action or event that could significantly affect the health, safety, security, or economic wellbeing of Canadians, or the effective functioning of Canada’s governments. Download Chapter 23

Chapter 24: Environmental, Social & Governance (ESG) Considerations ESG considerations are increasingly important and central to business strategy in Canada. Companies are expected to adopt a strategy that addresses investor concerns about ESG issues and to clearly communicate their ESG initiatives in capital market disclosures. Download Chapter 24

Chapter 25: Real Estate Canadian real estate is primarily governed by provincial laws. Provinces delegate specific powers to municipalities, such as controlling land use, development, building permits and related health and safety matters. Real estate is also subject to federal laws. Download Chapter 25

Chapter 26: Life Sciences Canada has a well-developed life sciences sector with a robust regulatory framework overseen by both federal and provincial governments. The federal government regulates the safety and efficacy of health products throughout their life cycle, while the provinces and territories handle general healthcare legislation. Download Chapter 26

Chapter 27: Agribusiness In Canada, agribusiness includes all the steps a commodity goes through to reach the consumer. A major element of agribusiness is the agrifood industry, which has several subsectors: agriculture, fisheries and aquaculture, as well as food and beverage processing and distribution. Download Chapter 27

Chapter 28: Cannabis When the Cannabis Act came into force on October 17, 2018, Canada became the second country in the world to legalize the sale, possession and use of cannabis for recreational purposes, following the legalization of medical-use cannabis about twenty years earlier. Download Chapter 28

If you’re considering Canada as part of your international business strategy, you’ll want the need-to-know legal information in this comprehensive guide made for U.S. and foreign companies.