Canada

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Operating a Business in Canada

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
One man business. No minimum capital.	1 person. Liable for all debts and obligations.	From CAD 32 to CAD 50.
Partnership Personal investment	2 persons or more Personally liable for all the debts and obligations of the company.	Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Limited liability partnership Personal investment	2 persons and more Liable for debts only to a certain extent.	Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
A Corporation is a private joint-stock company identified by Ltd or Inc or Co. Public or Private. No minimum capital	Investing partners Limited liability. Not liable for the debts, obligations or acts of the company.	Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
State owned company, the shares are public No minimum capital.	Investing partners Limited liability. Not liable for the debts, obligations or acts of the company..	Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Private company majority of shareholders Canadian No minimum capital.	No minimum. Limited liability. Not liable for the debts, obligations or acts of the company. Cannot sell shares or securities to the general public.	Fees varies according to the province between CAD 32 and CAD 332. It is advisable to go through a notary or a lawyer, which will increase the costs.
Cooperative No minimum capital.	Managed by members Limited liability.	Costs lower than for a State owned company or a Private company
Limited partnership No minimum	persons financially involved The liability of the silent partner to the company and creditors is limited to the amount of capital he invested.	Costs lower than for a State owned company or a Private company

Business setup procedures: Drawing up statutes is not subject to any particular obligation. However, every company must have a federal and provincial GST & HST tax number and must request this when registering. The registration of capital and statutes must be carried out in each province where the company does business, and it must be done within 30 days of starting business.
The competent organization: Registering a company can be done through the office of a notary or a lawyer. Each province has a provincial or regional office to make registering easier. Numbered companies are registered within 10 days. In Quebec this is the department of the Enterprise Registrar.

Working conditions

Legal weekly duration: 40 or 48 hours according to the province
Retirement age: In Canada, the labor laws do not specify the age of retirement for workers, except in the case of certain professions such as the military, judges and firemen.
Working contracts: Work contracts are governed by law. Collective agreements and individual negotiation supplement it.
The formalities of the work contract, hiring conditions and dismissal constraints are rigid.

Cost of labor

Minimum wage: The minimum wage in Quebec went up on 1 May 2007 to 8.20 CAD/hour, and 8.25 CAD for the clothing industry and 7.25 CAD for workers who receive tips. In Ontario, on 31 March 2008 the wage will be 8.75 CAD, and 7.60 CAD for serving alcohol. In British Columbia 6 CAD/hour for a first job and 8 CAD for a 2nd job.
Average wage: 38,998 CAD
Social contributions: Social security contributions paid by employers: Employment insurance EI (1.4% up to 584 USD in Quebec and 720 USD for the other provinces), Health insurance RAMQ (2.7%), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.583% for the employer).
The rate of health insurance varies according to the province.
Social security contributions paid by employees: Employment insurance EI (1.46% up to 584 USD in Quebec and 720 USD for the other provinces), Canada Pension Plan CPP - QPP (4.95%), Quebec Parental Insurance Plan RQAP (0.416%)
The rate of health insurance varies according to the province.

Social partners

Social dialogue and involvement of social partners: The labour organizations and trade unions are very strong and well structured in Canada. Quebec is the most unionized province.
Unions: FTQ - Quebec workers federation
CSN - Canada national federation of labour organizations and trade unions
CLC-CTC - Canadian Labour Congress
NUPGE - National Union of Public and General Employees
TCA-CAW - Canada Automobile Workers Union
CUPE - Canadian Union of Public Employees
Unionization rate: 22.9 % of part-time workers, 31.2% of full-time workers, 30.2 % of permanent workers, 25.8 % of non-permanent workers. These rates have dropped in companies of less than 20 employees and in those of 100 to 500 employees. On the other hand, they have risen in establishments of more than 500 employees and those of 20 to 99 employees.
Labor regulation bodies: Human Resources and Social Development Canada

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