introduction to canada

8/8/2019 Introduction to Canada

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INTRODUCTION TO CANADA

Canada is the second largest country in the world, smaller only to

Russia.

Population: 28 million peopleGeographic size: 3.9 million square miles

Capital: Ottawa

Major cities and population: Toronto, Montreal, Vancouver, Calgary,Edmonton, Winnipeg, Halifax

Canada has a very large and diverse range of geographic features.

Canada is divided into 10 provinces and 2 territories. Canada has a

very small population, 28 million people, for its geographic size.

Much of Canada is still wilderness, cover by forests. The Rocky

Mountains cover a major part of western Canada -- British

Columbia, the Yukon Territory, and the western part of Alberta.

Major Industries

The industry varies as you look across Canada. British Columbia, on

the west coast, has historically relied on natural resources such asmining and timber. Manufacturing is now becoming much more

important to the economy. Alberta has benefited from considerablenatural resources including oil and natural gas. It is also rich inminerals such as zinc, silver, nickel and uranium.

The prairie provinces of Manitoba, Saskatchewan and parts ofAlberta produce more than 20% of the world's wheat. Other forms

of farming and cattle also contribute to the economy.


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Population and Culture

Both English and French still play a significant role in Canada, with

both being official languages. Most of Quebec and parts of eastern

Canada are still heavily influenced by their French origins. Much ofthe rest of Canada is English origin. Canada has also had significantimmigration from other European countries such as Germany, Italyand the Ukraine. There are also many immigrants from Asia. The

Canadian Government tries very hard to maintain a multi-culturalenvironment, encouraging people to maintain their heritage.

Most of Canada's population lives within 100 miles of the border

with the United States. About 75% of the population lives in majorcities or towns.

Climate

With Canada being so large, the climate varies considerably

throughout the country. Canada is generally known for its cold

winters and hot, but short, summers.

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 or dealing with one-time

legal issues arising in Canada.

In particular, it provides information for those enterprises that are

considering:

Carrying on business in Canada through a branch operation; or


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Incorporating a subsidiary corporation to carry on business in

Canada.

This Guide describes some of the major aspects of Canadian law that

you will need to consider 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, in Ontario the Business Corporations Act,

1990 (OBCA) is applicable to corporations incorporated in Ontario.

However, the Business Corporations Acts of the provinces and

territories generally reflect the provisions of the Canada Business

Corporations Act (CBCA), which is the legislation that governs federally

incorporated businesses in Canada. This Guide focuses on the

applicable laws of Ontario and of Canada.

FOREIGN INVESTMENT IN CANADIAN REAL ESTATE

Non-Canadians hold a significant amount of Canadian real estate.

Pursuant to the federal Citizenship Act, a non-resident can acquire,

hold and dispose of real property in the same manner as a Canadian

citizen or resident. In Ontario, the Aliens Real Property Act gives non-

citizens the same rights as Canadians with respect to real property.

There are several vehicles through which a non-Canadian investor can

hold Canadian real estate, including:

Corporation an association of persons created by provincial or

federal statute as a legal

entity;

Partnership a business created through an agreement by 2 or morepersons that is not organized as a corporation;

Limited Partnership a partnership that includes 1 or more partners

with limited liability in respect of the dealings of the partnership;


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Co-ownership or Joint Venture 2 or more persons who own real or

personal property or an association of persons or companies jointly

undertaking some commercial enterprise respectively;

Trust a legal entity created by a deed made by a grantor, through

which a trustee is appointed to administer the assets of the trust for

the benefit of designated beneficiaries;

Personal Ownership ownership in an individuals personal name

and capacity.

Partnerships, joint ventures, and corporations are discussed in greater

detail in Chapter 5 Forms of Business Organization.

Property law is a responsibility of the individual provinces. Generally,Canadian property law has developed from English common law except

in Quebec, where it is governed by the Civil Code.

As there is no constitutional protection for property rights in Canada,

governments can expropriate property at any time, as long as

appropriate compensation is paid. Generally, the power to expropriate

is only used to allow construction of schools, parks, highways, and

utilities.

Expropriation is regulated by a complete code of procedure as set out

in federal and provincial statutes. This code, providing for the owner of

the subject land to receive appropriate compensation, must be

followed whenever a government uses its power to expropriate.

Financing Real Estate Acquisitions

Financing for the acquisition of real estate is normally done through

institutional lenders, which

generally charge an interest rate based on Canadas prime rate.

Institutional lenders normally do

not finance more than 75% of the propertys appraised value.


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India To Import Nearly 60 Million Tonnes OfThermal Coal In 2010

India is expected to import nearly 60 million tonnes of thermal coal in

2010. After coking coal and iron ore, thermal coal supply contracts

have now been signed at a much higher price than last year.

Recently, term contracts for Newcastle coal were signed at USD 97 to

USD 98 per tonne between producer Xstrata and Japans Chubu

Electric for 2010-2011, about 40% higher than last year. These were

initial contracts. Thermal coal is used by power plants. Initial

expectations were that contracts for thermal coal would be signed at

USD 85 to USD 90 a tonne. Last year, thermal coal contracts were

settled at USD 70 a tonne.

Mr James OConnell MD of Platts said that This initial contract is

assumed by many to be a benchmark, especially when it is between

two such big players.

Some Japanese utilities link prices of their contracts to the global COAL

index. Hence, they do not negotiate an annual price, just an annual

tonnage contract.

Mr James said that Bumi Resources, Indonesias largest coal

producer, told Platts that one of its two coal producing units, Kaltim

Prima Corporation, settled an FY10 contract with a major Japanese

thermal coal buyer at USD 104 per tonne FOB.

MMTC and Adani Enterprises are major importers. Thermal coal spot

prices, ruling around contract prices at present, are unlikely to move

up further. According to industry sources, China is presently not in the

market and subdued imports from the neighboring country mean

prices will remain capped.

Mr Jigar Shah head of research, KIM ENG Securities India, said that

This is an initial contract and most of Indias thermal coal imports are

from Indonesia. The prices at which they are negotiated will be crucial

for Indian power and cement plants which import coal.


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Many new private sector power companies import thermal coal. Most

of Indias coal imports come from Indonesia and South Africa.

CARRYING ON BUSINESS IN CANADA

Non-residents will sometimes use their existing non-resident business

to establish a branch or a permanent establishment of the foreign-

owned parent organization in Canada. Or, they may decide to create a

new business corporation, called a subsidiary, under the federal

Canada Business Corporations Act (CBCA) or the corresponding

Business Corporations Act of a province or territory. For example, the

Business Corporations Act of Ontario (OBCA) is applicable to

corporations that incorporate in the province of Ontario.

From a Canadian tax perspective, it is often preferable to carry on

business in Canada through a subsidiary corporation rather than

through a branch.

In certain instances, other forms of business organization may also be

suitable, such as:

Co-operative Corporation a corporation that is organized and

operated on co-operative principles, as set out in the legislation that

governs this form of organization;

Joint Venture an association of companies jointly undertaking some

commercial enterprise;

Limited Partnership a partnership that includes 1 or more partners

with limited liability in regards to the dealings of the partnership;

General Partnership a business owned by 2 or more persons that isorganized as a partnership and not as a corporation; and

Licensing, distribution, agency or franchising arrangement typically

contractual arrangements between the non-resident and a Canadian

entity.


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The Best Business Opportunities of2010

1) Green Construction

Consumers, increasingly concerned about environmental impacts, are

demanding greener construction practices. Whether they're purchasing

a new home or upgrading an old one, they want a building that not

only looks good but meets current environmental standards. Homes

that meet ratings standards such as LEED, BuiltGreen, and R-2000 are

going to be in ever increasing demand. Green materials, green

techniques, and green certifications are going to be the keys to

success in construction this year.

2) Green Technologies

Business opportunities abound for green ideas. Whether you believe in

the seriousness of climate change or not, one thing is certain; the

furore has released the government purse strings for green technology

projects. Both loans and grants are available to fund projects that

attempt to solve environmental challenges. In Canada, the

Government of Canada's Funding Technologies for the

Environment website is a searchable "inventory of funding and

incentive programs to help develop, demonstrate and deploy

environmental technologies".

3) Dollar/Discount Stores

In 2010, everyone will continue to say that the economy is getting

better. Consumers generally, however, will continue to be more frugal

than they used to be and look for bargains, making dollar store and

discount store franchises solid business opportunities. Buck or Two and


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the Great Canadian Dollar Store are just two discount store franchises

you may want to investigate. Wondering whether or not buying a

franchise is the right business opportunity for you? Should You Buy a

Franchise? lays out the advantages and disadvantages to help you

decide.

4) Senior Care

Senior care makes my best business opportunities list once again

because of ever-growing demand. Business opportunities in senior

care range from opening your own senior care home through providing

in-home care or home services such as preparing meals, housekeeping

or running errands. Senior care franchises are another option for

getting in on this business opportunity.

5) Senior Renovations

Home renovations have long been a booming business opportunity to

the extent that anyone who can pick up a hammer has tried to muscle

their way into the market. How do you distinguish yourself from all the

renovation wannabes? Focus on a niche market. Seniors needing

renovations to make their lives easier and stay in their own homes

longer is a niche waiting to be colonized. Ramps and specialized bath

fittings are just the beginning.

Continue on to the next page to read about five more of the best

business opportunities for 2010.

6) Heating and Cooling Products and Services

Heating and cooling products and services are great business

opportunities this year because the industry gets a boost from

government environmental incentives. When installing a heat pump inthe home not only saves money in the long run but gets you a rebate

or a tax break, consumers are much more likely to do it. Small

businesses that install and service furnaces, heaters, gas fireplaces, air

conditioners, heat pumps and the like will thrive.

7) Local Food Suppliers


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Business opportunities supplying local food are another example of

how consumer demand shapes the marketplace. Hardly anyone even

bothered to read a food label five years ago; now knowing exactly

where your food came from and how it was grown or raised is all the

rage. It's a good thing, I think especially for people involved inproducing local food. Farmers' market and farm gate sales are

increasing, but don't forget that retail markets and restaurants

specializing in local food are also good business opportunities.

8) Nutrition Consulting

People's concern about food and how it's produced has also translated

into a bonanza for the food as health movement. Besides jumping on

the bandwagon and buying whatever food is being currently promotedas having spectacular health benefits, consumers are looking for food

information tailored to their lifestyle and health concerns. It will be a

banner year for nutritionists, but also for naturopaths.

9) Social Media Marketing/ Management

Unless youve been hiding in a cave somewhere for the past year you

know how social media has grown and how it's come to be viewed as

the next holy grail in marketing for businesses. What you may not

have noticed is how difficult it is for many businesses, especially small

businesses, to use it, making Social Media Marketing an excellent

business opportunity. If you can promise and deliver actual effective

social media marketing campaigns, they will come.

10) Business Security

The trend for businesses to beef up their security will continue,

creating all kinds of business opportunities for products and services,

from biometric security systems through security guards. Note that thetype of security in demand tends to vary greatly with the size and type

of business; small businesses are much more likely to invest in an

alarm system than in a fingerprint identification system.

Why Are These the Best Business Opportunities?


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Because these are business opportunities that have legs. Taking into

account the economy, consumer and business trends, these are

businesses that should be profitable not just for 2010, but for years to

come.

But not every business opportunity is right for everyone. You always

need to do your homework; writing a business plan is a good (and

safe) way to find out if the small business opportunity you're

considering is worth investing your time and money in.

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