Things to know
- Resellers, distributors and sales representatives in Canada will insist that your products or services comply with local laws, including French language rules and packaging and labelling requirements.
- Relationships with resellers, distributors and sales representatives need to identify who will be responsible for importing commercial products into Canada and who will be responsible for related fees and taxes.
- An “accidental franchise” relationship with resellers, distributors or sales representatives can be created under provincial franchise legislation – laws in six provinces broadly define a “franchise” and can “catch” commercial relationships not typically thought of as a franchise.
- The structure of your relationship with a reseller, distributor or sales representative may impact your obligation to pay taxes or register your business in Canada.
Things to do
- Ensure that your products or services comply with local laws, including French language rules
and packaging and labelling requirements.
- Ensure that your relationship with a reseller, distributor and sales representative does not create an “accidental franchise”, create a permanent establishment in Canada for tax purposes or otherwise result in unexpected obligations to pay taxes or register your business in Canada.
- Identify who will be the importer of record (e.g., the distributors, resellers or sales representative, or a licensed customs broker) and who will be responsible for related fees and taxes.
Canada Company Registration
Company Formations Canada offers fast and easy company registration in Canada for non-Canadian residents and foreign companies wishing to operate and do business in Canada.
Register a new company in Canada as a non-Canadian resident
https://companyformations.ca/canada-corporations-non-canadian-residents/
Register a foreign company in Canada
https://companyformations.ca/extra-provincial-corporations-licence-outside-canada/
Canada Registered agent services for foreign companies and non-Canadian residents.
https://companyformations.ca/canada-registered-agent-service/
Canada Nominee director services for foreign companies and non-Canadian residents.
Shared from: Osler, Hoskin & Harcourt llp Publication
