ARTICLE · 19 NOVEMBER 2009

Doing Business In Canada

Farris, Vaughan, Wills & Murphy LLP

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Canada is a federation comprised of ten provinces and three territories. Legal authority is divided between the federal and provincial or territorial governments, although jurisdiction overlaps in some areas.

CanadaStrategy

Article by Trevor Scott*

LEGAL SYSTEM

1. What Is The Legal System (Civil Law, Common Law Or A Mixture Of Both)?

Canada is a federation comprised of ten provinces and three territories. Legal authority is divided between the federal and provincial or territorial governments, although jurisdiction overlaps in some areas. The legal system is based on the English common law, with the exception of the province of Québec which has a civil law system based on the Napoleonic Code.

FOREIGN INVESTMENT

2. Are There Any Restrictions On Foreign Investment (Including Authorisations Required By Central Or Local Government)?

Foreign investors must notify the Canadian government when they begin a new business activity in Canada and when they acquire control of an existing Canadian business (Investment Canada Act, R.S.C. 1985, c.I-21.8). The following acquisitions are subject to review in order to ensure they provide a net benefit to Canada:

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