Establish Your Business in Canada
How IGC Helps Your Company Expand Into the Canadian Market
Invest Greater Calgary (IGC) helps international companies enter the Canadian market and establish operations in the Greater Calgary region. From initial market evaluation through launch and future expansion, we connect your team with the locations, information, and expertise needed to move your investment forward.
Market Review
Entering a new market starts with understanding the business environment and the factors that could affect your investment. For international companies considering Canada, this can include industry dynamics, regulatory and legislative requirements, market conditions, operating considerations, and other factors specific to doing business in Canada.
Invest Greater Calgary can help you assess the Greater Calgary and Alberta market, identify the key considerations relevant to your investment, and connect you with trusted industry, government and professional partners who can provide the specialized information you need to make an informed market-entry decision.
Site Selection
Whether you require commercial or office space, an existing facility that can be adapted to your operations, or industrial land for a new development, Invest Greater Calgary can help identify and evaluate suitable locations across the region.
Once we understand your site requirements, including facility or land size, infrastructure, utilities, transportation access, workforce considerations, and other operational needs, we work with our municipal partners and regional stakeholders to identify sites that align with your project.
Where a preferred location requires additional servicing or development, we can help connect you with land developers and other partners that can support a build-to-suit or development solution.
Our municipal partners can work directly with your team to help navigate land-use considerations, zoning, development processes and other local requirements. As the project advances, we can also connect you with experienced construction partners capable of supporting large-scale commercial and industrial projects.
Greater Calgary encompasses approximately 2 million acres (8,254 km²), offering a broad range of urban and rural development environments connected by major transportation and infrastructure networks. This diversity gives companies flexibility to identify a location that best fits their operational, workforce, and long-term growth requirements.
Regulatory, Funding, and Innovation Support
As you advance your investment, we can help you assess the government, regulatory, funding, and innovation resources that may support your Canadian operations.
Depending on your industry and project, this may include understanding federal or provincial regulatory requirements, identifying relevant government programs and incentives, or connecting with organizations that support research, product development, testing, and commercialization.
Canada and Alberta offer a range of programs that support areas such as innovation, research and development, workforce development, technology adoption, commercialization, and business financing. We can help identify programs that may be relevant to your project and connect you directly with the appropriate partners.
Greater Calgary also has a network of post-secondary institutions, research organizations, and innovation partners that work with industry on applied research, technology development and commercialization.
For industries with specific regulatory or legislative requirements, we can help connect your company to the appropriate government agencies and professional advisors so you can better understand the requirements associated with operating in Canada.
Business Setup & Operational Partners
After securing a location, your company may need to establish a Canadian business entity, open banking and financial relationships, recruit employees, navigate immigration requirements, understand taxation and accounting requirements, and secure a range of professional and operational services.
Invest Greater Calgary can help identify the business requirements you are likely to encounter as you establish your Canadian operations and connect you with private-sector partners that can support each stage of the process.
Depending on your business and expansion plans, these connections may include legal and corporate services, accounting and taxation, banking and financing, insurance, immigration, human resources, marketing and communications, information technology, logistics and supply-chain services, and other specialized professional services.
For companies relocating personnel or building a local team, we can also help connect you with organizations that support employee relocation, immigration, and recruitment.
Rather than identifying these resources independently, we can help connect you and engage a network of local expertise needed for you to establish and operate your business in Greater Calgary, providing a more coordinated path into the Canadian market.
Launch Support
Our support does not end when your business opens its doors. Once operations begin, Invest Greater Calgary can continue to serve as a regional point of contact, helping your company become established in the local business environment and supporting its continued growth.
We can help connect your team with industry associations, business networks, customers, research partners, and other organizations relevant to your sector. These connections can help your company build relationships and understand the regional industry ecosystem.
As your operations develop, we can also assist with emerging needs such as workforce and recruitment connections, government or municipal coordination, identifying relevant programs and resources, and connecting you with additional professional or industry partners.
Navigate Complexity
Companies entering Canada will encounter both federal and provincial requirements, with the rules that apply depending on factors such as the structure of the business, its activities, location, industry, and ownership.
The following information provides a general introduction to some of the principal considerations international companies may encounter when establishing, investing in, or acquiring a business in Canada. It is intended to help investors understand the Canadian business environment and identify areas where professional advice may be required.
IGC can also help companies identify and connect with legal, accounting, immigration, financial, and other professional service providers as they establish operations in Greater Calgary.
Business Structure
International companies establishing operations in Canada can choose from several business structures. The appropriate structure will depend on factors such as taxation, liability, ownership, financing requirements, and the nature of the company’s Canadian activities. The following guides identify branches, corporations, partnerships, and joint ventures among the structures available to foreign businesses.
Explore the Different Types of Structures
Branch or Canadian Subsidiary
A foreign corporation may operate directly in Canada through a Canadian branch or establish a separate Canadian subsidiary. A branch remains part of the foreign corporation, meaning the parent company is generally responsible for the Canadian operation’s liabilities. A subsidiary is a separate Canadian legal entity and can provide greater separation between the Canadian operation and its foreign parent.
Corporation
Corporations are one of the most common structures used by foreign businesses operating in Canada. A corporation is a separate legal entity from its shareholders and can be incorporated federally or under provincial or territorial legislation. Additional registration will be required in the provinces other than its province of incorporation where the company conducts business.
Partnerships
Businesses may also operate through general or limited partnerships. The responsibilities and liabilities of the partners differ depending on the type of partnership, and partnership income is generally treated differently from corporate income for tax purposes
Joint Ventures
Joint ventures allow two or more parties to participate in a particular project or business activity. They may be structured through a corporation, partnership, or contractual arrangement and can provide flexibility in allocating investment, responsibilities, revenues, and risk between participants.
Raising Capital
Companies operating in Canada have access to a developed banking and capital-market system. Financing can originate from the foreign parent company or from Canadian and international lenders and investors. The appropriate financing structure often depends on the company’s size, stage of development, assets, ownership structure, and long-term objectives.
Understand Your Financing Options in Canada
Debt Financing
Canadian banks are major providers of business financing, including operating lines of credit and longer-term loans. Other sources can include credit unions, finance companies, institutional lenders, and asset-based financing providers. Lenders may require security over company assets, parent guarantees or other financial commitments depending on the borrower and financing arrangement.
Equity Financing
Companies can also raise capital by issuing equity. This can include investment from existing shareholders, private placements, venture capital, or private equity. Businesses may also access Canada’s public capital markets. Any public financings, even for private companies, in Canada are subject to securities regulation and may require significant disclosure requirements.
Parent Company Financing
Foreign parent companies may finance Canadian operations through equity contributions, shareholder loans or a combination of the two. The financing mix can have important Canadian and home-country tax consequences and should normally be determined with professional tax and financial advice.
Taxation
Canada’s taxation system includes federal and provincial or territorial taxes. The tax treatment of an international company can vary significantly depending on whether it operates through a Canadian corporation, a branch or another structure, as well as whether applicable international tax treaties modify Canada’s domestic tax rules.
Review Tax Considerations for Canadian Operations
Residency
Canadian residents are generally subject to Canadian tax on worldwide income, while non-residents are generally taxed on income sourced in Canada. Corporate residency can depend on factors including incorporation and where the corporation’s central management and control is exercised. Tax treaties can also affect residency determinations.
Business Income
A non-resident company carrying on business in Canada may become subject to Canadian income tax and filing requirements. Where Canada has a tax treaty with the company’s home country, the existence of a Canadian permanent establishment can be an important factor in determining how business profits are taxed.
Withholding and Branch Taxes
Certain payments from Canada to non-residents, including some dividends, interest, royalties and other payments, can be subject to Canadian withholding tax. Companies operating through Canadian branches may also be subject to additional branch taxation. Applicable tax treaties can reduce or otherwise modify some of these obligations.
Sales and Transaction Taxes
Canada applies a federal Goods and Services Tax (GST), while some provinces also apply a harmonized (with GST) sales tax or separate provincial sales taxes. Registration and collection obligations depend on where and how the business operates.
Business Immigration
International companies establishing Canadian operations frequently need executives, managers, specialists, or other employees to travel to or work in Canada. Canada’s immigration system distinguishes between business visitors, temporary foreign workers, and other categories of foreign nationals.
Navigate Business Immigration in Canada
Business Visitors
Foreign nationals undertaking certain international business activities may qualify to enter Canada as business visitors without a work permit. Typical activities can include meetings, conferences, site visits, negotiations, and certain training activities, provided the individual is not entering the Canadian labour market.
Work Permits
Most foreign nationals who will perform work in Canada require a work permit. Canada has both employer-specific and, in certain circumstances, open work permits. Depending on the situation, an employer may also need a Labour Market Impact Assessment or may qualify for an exemption.
Intra-Company Transfers and Trade Agreements
International companies may have options for transferring qualifying executives, managers, or specialized employees to Canadian operations. Canada’s international trade agreements can also provide facilitated entry for certain business people, professionals, investors, and other qualifying workers.
Because immigration programs and eligibility requirements can change frequently, companies should confirm current requirements before transferring personnel to Canada.
Consumer Protection in Canada
Companies selling goods or services in Canada operate within a combination of federal and provincial consumer protection requirements. These rules are intended to promote fair business practices, product safety, and accurate information for consumers.
Understand Consumer Protection in Canada
Advertising and Marketing
Federal and provincial laws prohibit false or materially misleading advertising and certain deceptive marketing practices. These requirements can apply across traditional advertising, digital marketing, pricing, promotional claims, and other communications with consumers.
Product Labelling
Businesses importing, manufacturing, or selling products in Canada may be required to meet federal labelling, packaging, and disclosure requirements. Requirements vary by product category and can include bilingual information and specific standards for food, consumer goods, hazardous products, and other regulated products.
Product Safety
Manufacturers, importers, and retailers may be subject to Canadian product safety requirements, including obligations relating to product hazards, record keeping, incident reporting, and recalls.
Product Liability and Warranties
Provincial laws govern many contractual rights associated with the sale of goods and services, including warranties. Manufacturers, distributors, and sellers can also face liability when defective or unsafe products cause loss or injury.
Intellectual Property
Protecting intellectual property can be an important part of establishing a Canadian operation, particularly for companies bringing proprietary technology, products, brands, designs, or processes into the Canadian market. Canada’s intellectual property system includes several forms of protection administered federally through the Canadian Intellectual Property Office.
Canada’s IP system encompasses patents, trademarks, copyright, industrial designs and other forms of protection.
Intellectual Property Protection in Canada
Patents
Patents can provide exclusive rights over qualifying inventions, products, and processes. Companies entering Canada should consider whether existing international patent strategies provide appropriate Canadian protection and whether new Canadian applications are required.
Trademarks
Trademarks protect brands and other identifiers that distinguish a company’s goods or services. Registration in Canada can provide the owner with exclusive rights associated with the registered mark throughout the country. Contravention of existing trademark rights of other persons may also expose a company to liability in its conduct of business in Canada.
Copyright and Industrial Designs
Copyright can protect original literary, artistic, musical, and other works, including certain software and digital content. Industrial design protection can apply to the original visual features of products.
Trade Secrets
Commercial information, manufacturing processes, formulas, methods, and other confidential business information may also be protected through confidentiality arrangements, contracts, and appropriate information-management practices.
Mergers and Acquisitions
Acquiring an existing Canadian business can provide international companies with another route into the Canadian market. Canadian mergers and acquisitions can take several forms, with the transaction structure influenced by taxation, liabilities, financing, regulatory requirements, and the objectives of the purchaser and seller. Employment, taxation, intellectual property, environmental matters, contracts and other liabilities are also commonly considered during transaction due diligence.
Learn About Acquiring a Business in Canada
Share and Asset Acquisitions
Private company acquisitions are commonly structured as either the purchase of shares in the target company or the purchase of selected business assets. A share purchase generally transfers ownership of the company together with its existing assets and liabilities, while an asset purchase allows the purchaser to identify the particular assets and liabilities being acquired.
Public Company Transactions
Public company acquisitions may be completed through structures such as negotiated plans of arrangement or takeover bids. Canadian securities laws establish requirements relating to disclosure, shareholder treatment, and transaction procedures.
Regulatory Considerations
Depending on the size, industry and ownership of the transaction, an acquisition may also be subject to review under the Competition Act, the Investment Canada Act, securities legislation, or industry-specific regulation.
Foreign Investment Regulation
Canada generally welcomes international investment, but foreign investment is subject to federal review requirements in certain circumstances. The principal federal legislation is the Investment Canada Act (ICA), which applies to investments by non-Canadians in Canadian businesses.
Review Canada's Foreign Investment Regulations
Investment Canada Act
Foreign investors establishing a new Canadian business or acquiring control of an existing Canadian business may have filing obligations under the ICA. The type of filing or review required depends on factors such as the transaction, value of the Canadian business, and characteristics of the investor.
Net Benefit Review
Certain significant acquisitions of control can require approval based on whether the investment is likely to provide a “net benefit to Canada.” Factors considered can include employment and economic activity, Canadian participation, productivity and innovation, competition, and Canada’s ability to compete internationally.
National Security Review
Canada may review foreign investments of any size for potential national security concerns, including investments that do not involve acquisition of control. Factors can include sensitive technologies and information, critical infrastructure or minerals, supply chains, and the characteristics of the foreign investor.
Industry-Specific Requirements
Certain regulated industries can also have Canadian ownership, licensing, or approval requirements separate from the Investment Canada Act.
Competition Law
Canada’s federal Competition Act governs competition and anti-competitive business conduct. It applies broadly across industries and can affect mergers and acquisitions, relationships between competitors, pricing and distribution arrangements, marketing practices, and the conduct of businesses with significant market power.
Explore Competition Law in Canada
Merger Review
Certain mergers and acquisitions must be notified to the Competition Bureau before completion when statutory thresholds are met. Transactions that do not meet notification thresholds can still be reviewed where there are concerns about their potential effect on competition.
Anti-Competitive Conduct
The Competition Act also addresses activities such as agreements between competitors, bid-rigging, and other conduct that can restrict competition. It also contains provisions governing abuse of dominance and agreements or practices that substantially harm competition.
Advertising and Marketing
The Competition Act regulates also regulates false or misleading representations and deceptive marketing practices, creating some overlap between Canada’s competition and consumer protection regimes. The Competition Bureau administers and enforces the Competition Act.
Important Legal Disclaimer
The information provided in this section by Invest Greater Calgary (IGC) is for general informational purposes only. It is not intended to constitute, and should not be relied upon as, legal, tax, accounting, immigration, financial or other professional advice.
IGC does not make any representation, warranty, or guarantee, express or implied, regarding the accuracy, completeness, currency, or applicability of the information provided. Laws, regulations, government policies, programs, and requirements may change without notice and their application will depend on the specific circumstances of each business or investment.
Businesses and investors should obtain independent advice from qualified legal, tax, immigration, accounting, financial, or other professional advisers before making decisions or taking action in Canada.
Where IGC provides references or links to third-party organizations, websites, or resources, these are provided for informational convenience only and do not constitute an endorsement, representation, or warranty by IGC regarding the suitability of those organizations or the information or services they provide.