Canada-Operating a business

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Published: 06 Oct 2008 17:36:28 PST

Setting up a company

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
One man business.	1 person.	No minimum capital.	Liable for all debts and obligations.	Less than 32$ to 50$.
Partnership	2 persons or more	Personal investment	Personally liable for all the debts and obligations of the company.	Varies according to the province between 32$ and 332$. It is advisable to go through a notary or a lawyer, which will increase the costs.
Limited liability partnership	2 persons and more	Personal investment	Liable for debts only to a certain extent.	Idem
A Corporation is a private joint-stock company identified by Ltd or Inc or Co. Public or Private.	Investing partners	No minimum capital	Limited liability. Not liable for the debts, obligations or acts of the company.	Idem

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.

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.

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 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.

Bargaining power: The labour organizations and trade unions are very strong and well structured in Canada. Quebec is the most unionized province.
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