Dealing With Non-Resident Companies

In a topsy-turvy world, the relative strength and stability of Canada's economy continues to attract foreign investment, including our commercial and residential real estate sectors.

Since it may not always be advantageous for foreign companies to incorporate a Canadian entity, Canadian businesses are more likely today than ever to have dealings with non-resident companies, whether as buyers, sellers, landlords, tenants or financiers.

Transacting with a foreign company raises a host of issues that need to be thought about. To illustrate just one, consider a situation where a Canadian landlord wants to enforce a covenant in a lease – say a payment or an indemnity – that the non-resident tenant corporation has failed to honour.