Toronto's Business Lawyer Blog

Launching a corporate business subsidiary in Toronto is an important step for many international companies to expand their business operations into the Canadian market. As Canada's financial capital, the city of Toronto is the veritable centre for commercial operations throughout the country, much like New York City, London, Paris and Tokyo. As such, foreign entry through Toronto tends to be a smart business decision.

 Establishing a subsidiary corporation, as opposed to simply commencing branch operations, tends to be a preferred method for foreign companies to undertake business in Canada. Among the advantages associated with establishing a subsidiary company would be the following: (a) limited liability of a subsidiary company, which insulates the parent company from the subsidiary company’s liabilities; (b) potentially heightened market presence and impact; (c) potentially increased speed and efficiency with which regulatory approvals and financing are obtained.

 A further consideration is that unlike a subsidiary company, when utilizing merely a branch office, the foreign parent corporation could be subject to a variety of onerous Canadian legislation, including Canadian tax laws that requires foreign corporations doing business through a branch office to open their books and accounting records to a Canadian tax audit.

As such, there are significant advantages associated with undertaking business in Canada correctly, which begins with selecting the appropriate legal structure, in addition to make the right commercial decisions, to optimize the company's entry into the Canadian market. At the law firm of Neufeld  Legal P.C.,  we have the skills and experience to enable your business to effectively expand into Canada.

Contact us via email at Chris@NeufeldLegal.com or phone 416-887-9702.