Forms of business organisation

A business may be carried on in Canada in various forms. Most commonly, a business being carried on in Canada by a foreign corporation would be conducted using a corporate vehicle, either a Canadian incorporated subsidiary or a branch operation of the foreign corporation. Depending on the nature and scope of the activity, the degree of limited liability required, certain tax and other considerations, the business activity could also be conducted through a sole proprietorship (for an individual), a partnership or a joint venture. It is also possible, in some cases, to supply goods and services to Canadians through various contractual arrangements, such as distributorship agreements, without actually setting up a business in Canada. The legal implications of the respective vehicles available for carrying on business in Canada are summarized further in this section.

More in this section:

  • Corporations
  • Foreign corporation – branch operation
  • Incorporation and organization of corporations
  • Other types of business organizations
  • Franchising
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