How to Move a Company to Canada

Canada has three different forms of legal business ownership.

Moving a business to Canada is similar to opening a business in the U.S. There are legal forms and registration papers to be filled out before the business can legally operate and complexity depends on the type of business ownership. A sole proprietorship is much easier to open than a corporation with shares and limited liability. A company opening a business must also ensure that any key employees moving to Canada follow the standard procedure put forth by Citizenship and Immigration Canada.

Instructions

1. Plan the move. Decide who exactly will be moving if the whole company move or just a division. Maybe the company will opening a branch office in Canada. Decide who is moving and determine what resources they need.

2. Select a form of business ownership. In Canada a business must operate under one three forms of ownership: sole proprietorship, partnership or corporation. For companies with several full-time employees a corporation is the best option. Corporations have limited liability, meaning that it (the company) is its own entity and the employee's and shareholder's assets are not tied to those of the business.

   Corporations also offer more legal protection. A business is registered in a certain province or territory and not federally. Contact the province's business services office to register the business via the province's official website, for example ontario.ca.

3. Register the business name. Once the business is registered the name of the business must also be registered. This protects the business's name and trademark. While you used the business name to open the corporation you must also register it to ensure copyright protection.

4. Get a business license. This does not apply to all businesses. Some businesses, such as restaurants and bars require special licenses from the municipality they are operating in. You may require liquor licenses, vending permits and health and safety licenses. Check with the local municipality to determine if the business requires a special license.

5. Open a bank account and deposit start up capital. You will need a Canadian bank account to do business in Canada. The employees of a company that brings in foreign investment will be treated more favorably when applying for Canadian work visas.

6. Apply for work visas for key employees at Citizenship and Immigration Canada. For companies moving to Canada, the process is quicker and more likely to be approved. The government encourages direct foreign investment in Canada and it tries to make it easy for foreign companies to open in Canada.

References

• Canada One: Starting a Business in Canada
• Canada One: Business Structure & Protection of Personal Assets
• Canada Citizenship and Immigration: Investors, entrepreneurs and self-employed persons
• ServiceOntario: Business Name Search, Registration, and Renewal