Things to know

• Most office, retail and industrial space in Canada is available only through a commercial lease. • Most commercial lease transactions start with a binding offer to lease that sets out the most important business terms; a non-binding letter of intent could also be used for this purpose, although it is less common. 
• Commercial leases in Canada are typically on a fully net basis, which requires a tenant to pay basic rent plus a proportionate share of the realty taxes, insurance, utility and other maintenance charges for the building. 
• In a retail lease, the tenant may also be required to pay a percentage of its sales as “percentage rent”.

Things to do

DETERMINE YOUR SPACE REQUIREMENTS 

• Leases generally have a term of five or ten years, so consider whether you need expansion or contraction rights or a right of first refusal on other space in the building. 

CONSIDER THE FINANCIAL OBLIGATIONS

• Determine if the entity doing business in Canada has a sufficient net worth to satisfy the lease obligations or if an indemnity from a related company or other security might be necessary. 

FIND A REAL ESTATE BROKER IN CANADA 

• Consider leveraging your business relationship with your local real estate broker, if any, to see if they have relationships with a broker located in Canada, or consult local advisors for recommendations — a local broker can provide invaluable information on local market conditions and rental rates.

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