Written and Produced by Taylor Leibow LLP
Canada is a high tech industrial society with a market-oriented economic system and high living standards. While previously a rural country, since World War II Canada’s manufacturing, mining and service industries have grown giving it a primarily industrial and urban economy. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North
American Free Trade Agreement (NAFTA) (which includes Mexico) enabled an increase in trade and economic integration with the US, its main trading partner. Thanks to Alberta’s oil sands and offshore oil reserves in Newfoundland, Canada now has the third largest proven oil reserves in the world, and is the world’s fifth-largest oil producer.
Canada’s abundant natural resources, highly skilled and educated labour force, and modern capital plants have facilitated economic growth such that it became the world’s tenth largest economy (by GDP, 2016), and GDP per capita is estimated at
$43,000 USD. Canada is a member of the Organization for Economic Co-operation and Development (OECD) and the Group of Eight (G8), and is one of the world’s top ten trading nations, with a highly globalized economy. Canada uses its own independent currency, the Canadian dollar.
This document describes some of the key commercial and taxation factors that are relevant on setting up a business in Canada. The document includes information on: