In selecting the most appropriate vehicle for carrying on
business in Canada, foreign entities will often be driven by tax
preferences. Other factors that should be considered in determining
the form of the business organization include potential
liabilities, the method of financing and the nature of a particular
business. The most common form of business organization in Canada
is a corporation. Foreign entities may also consider conducting
business in Canada through a branch office, partnership, limited
partnership, franchise and licensing arrangement, joint venture, or
by entering into contracts with Canadian distributors and
independent agents.
CORPORATIONS
Overview
A foreign entity may choose to carry on business in Canada
through a Canadian subsidiary corporation. A corporation with share
capital is the form of business enterprise used most frequently to
carry on commercial activities. A corporation is a legal entity
with a separate legal existence from its
