Economy Profile of Canada

Ease of Doing Business in Canada

ease of doing business in canada

Rankings on Doing Business topics – Canada

rankings on doing business topics canada

Topic Scores

topic scores canada

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally start and formally operate a company (number)

  • Preregistration (for example, name verification or reservation, notarization)

  • Registration in the economy’s largest business city

  • Postregistration (for example, social security registration, company seal)

  • Obtaining approval from spouse to start a business or to leave the home to register the company

  • Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day (2 procedures cannot start on the same day)

  • Procedures fully completed online are recorded as ½ day

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

  • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

Case study assumptions

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business – Canada

Starting a Business - Canada

Figure – Starting a Business in Canada – Score

Starting a Business in Canada – Score

Figure – Starting a Business in Canada and comparator economies – Ranking and Score

Starting a Business in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Canada – Procedure, Time and Cost

Starting a Business in Canada – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Canada – Procedure, Time and Cost

File for federal incorporation and provincial registration via the online Electronic Filing Centre

Agency : Innovation, Science and Economic Development Canada

To file for incorporation electronically (via Online Filing Centre), the cost is CAD 200. There is no fee for the provincial registration in Ontario. Electronic filing for incorporating a business is 1 day and the Business Number is sent to the company within 5 days.

1 day

CAD 200

The following documents are required to file for federal incorporation and provincial registration:

  1. Form 1: Articles of Incorporation

  2. Form 2: Initial Registered Office Address and First Board of Directors

  3. Provincial registration form.

    While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova Scotia and Saskatchewan can be done at the same time when the documents for federal incorporation are filed (via Joint Online Registration System), generally, a federal company that intends to conduct business in other Canadian province would need to register in that province individually. See, for example, Part 11 of the Business Corporations Act (British Columbia).

    Four incorporation options available:

    1. Incorporation of a numbered name corporation, e.g. 1234567 Canada Inc.

      If the company is incorporating under a name, rather than a number, a name search report must be obtained at a cost of CAD 13.8. The search report and articles must be filed within 90 days of the production of the name search report.

    2. Incorporation of a corporation with a name pre-approved by Corporations Canada (a NUANS® search in electronic format is required to accompany the submission) or

    3. Incorporation of a corporation where name approval is to be sought (a NUANS® search in electronic format is required to accompany the submission);

    4. Incorporation of a numbered name corporation that has been pre-reserved.

It is a same day service, if you submit the forms online prior to 1PM, the incorporation certificate should be provided on the same day by 5PM.

Once a corporation is created, the corporation's information is transmitted to the Canada Revenue Agency which then transmits back the Business Number with the corporate income tax account number. This number can be accessed within a day from the online database of federal corporations on Industry Canada's website.

No.

Procedures

Time to Complete

Associated Costs

2 Register for GST/HST

Agency : Canada Revenue Agency

All private corporations with turnover of over 30,000 CAD of taxable supplies per quarter must register for the VAT –referred to as Goods and Services Tax (GST)/Harmonized Sales Tax (HST) – with Canada Revenue Agency (CRA). The company must register within 29 days after a sale is made other than as a small supplier. In order to register with CRA, corporations must provide the Name, phone number, and the Social Insurance Number (SIN) of at least one owner/director of the business and the Business Address and Major Business Activity (MBA) when registering.

Registration can be done online at http://www.cra-arc.gc.ca/menu-eng.html – at no cost.

less than one day (online procedure)

no charge

Takes place simultaneously with previous procedure.

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

  • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates

  • Submitting all required notifications and receiving all necessary inspections

  • Obtaining utility connections for water and sewerage

  • Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

Building quality control index (0-15)

  • Quality of building regulations (0-2)

  • Quality control before construction (0-1)

  • Quality control during construction (0-3)

  • Quality control after construction (0-3)

  • Liability and insurance regimes (0-2)

  • Professional certifications (0-4)

Case study assumptions

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

  • Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.

  • Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

  • Will be used for general storage activities, such as storage of books or stationery.

  • Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.

  • Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.

  • Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

  • Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.

  • Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.

  • Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Canada

Dealing with Construction Permits - Canada

Figure – Dealing with Construction Permits in Canada – Score

Dealing with Construction Permits in Canada – Score

Figure – Dealing with Construction Permits in Canada and comparator economies – Ranking and Score

Dealing with Construction Permits in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost

Dealing with Construction Permits in Canada – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Figure – Dealing with Construction Permits in Canada and comparator economies – Measure of Quality

Dealing with Construction Permits in Canada and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Canada – Procedure, Time and Cost

dealing with construction Permits in canada procedure time and cost dealing with construction Permits in canada procedure time and cost dealing with construction Permits in canada procedure time and cost

Details – Dealing with Construction Permits in Canada – Measure of Quality

Dealing with Construction Permits in Canada Measure of Quality Dealing with Construction Permits in Canada Measure of Quality

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

  • Submitting all relevant documents and obtaining all necessary clearances and permits

  • Completing all required notifications and receiving all necessary inspections

  • Obtaining external installation works and possibly purchasing material for these works

  • Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

  • Is at least 1 calendar day

  • Each procedure starts on a separate day

  • Does not include time spent gathering information

  • Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

  • Duration and frequency of power outages (0–3)

  • Tools to monitor power outages (0–1)

  • Tools to restore power supply (0–1)

  • Regulatory monitoring of utilities’ performance (0–1)

  • Financial deterrents limiting outages (0–1)

  • Transparency and accessibility of tariffs (0–1)

    To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:

  • Is owned by a local entrepreneur and is used for storage of goods.

  • Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.

  • Is a new construction and is being connected to electricity for the first time.

  • Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

    The electricity connection:

  • Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).

  • Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.

  • Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.

    The monthly consumption:

  • It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.

  • If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.

  • Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

Price of electricity (cents per kilowatt-hour)*

  • Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Canada

Getting Electricity - Canada

Figure – Getting Electricity in Canada and comparator economies – Ranking and Score

Getting Electricity in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Canada – Procedure, Time and Cost

Getting Electricity in Canada – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures

reflected here, see the summary below.

Figure – Getting Electricity in Canada and comparator economies – Measure of Quality

Getting Electricity in Canada and comparator economies – Measure of Quality

Details – Getting Electricity in Canada – Procedure, Time and Cost

1 Submit application to Toronto Hydro and await comments on proposal

Agency : Toronto Hydro

An application for an electrical connection can be submitted through a written request by letter or email.

Required documents:

(1). Architectural, electrical, mechanical drawings (2). Survey plan and site plan (3).Locations of other services, gas, telephone, water, cable (4) required in-service date, proposed service entrance equipment, rated capacity and voltage rating, metering requirements and proposed load. At this point Toronto Hydro requests for a preliminary design deposit based on ($10,000 per MVA of load) which is put towards the cost of the job once it proceeds.

15 calendar days CAD 1,400

2 Await completion and approval of project design

Agency : Contractor

3 Submit final design to Toronto Hydro and await offer to connect

The customer’s private consultants will provide Toronto Hydro with the final design drawings and requirements. Toronto Hydro prepares an Offer to Connect, which includes the connection charges and schedule of work. During this time Toronto Hydro will check for feeder capacity, prepares the design scope and cost, and present the customer with an offer to connect.

The OTC outlines the cost of the project and the responsibilities of each party.

22 calendar days

CAD 0

After the Offer to Connect is issued, the applicant must sign and comply with all the conditions in the OTC before any further work can be completed, which includes payments.

An external inspection is performed by the utility to prepare the offer to connect and the technical study. No one from the applicant's party is present during the inspection. Toronto Hydro submits an Offer to Connect to the customer within 60 days of the request (all information required from the customer must be submitted).

The customer's electrical consultant prepares the design of service entrance requirement. The electrical design has to be approved by the Electrical Safety Authority. Usually the approval is obtained by the electrical consultant/hired electrical design firm.

After the estimate has been issued a part of the external connection works are carried out by Toronto Hydro. The works will most likely include the following: (a) Extend the overhead primary feeder cables down the street by installing a new pole line up to the point that is in line with the customer's building. (b) From an overhead feeder install a primary riser switch and fusing at the pole. (c) Construct underground ducts from the base of the pole up to the customer’s property line.

(d) Install underground primary cable from the riser switch to the padmounted structure. (e) Install padmounted transformer. (f) Make primary and secondary connection at padmounted transformer. The connection fees paid to Toronto Hydro include: engineering design, labor, material, equipment, overhead costs (including administration and inspection). The utility will obtain an excavation permit for the part of the work which is their responsibility.

Toronto Hydro performs an economic evaluation on the "expansion" portion of the connection and the forecasted revenue of connecting this customer. In this case, the customer will have to provide a security deposit known as an Expansion Deposit. This expansion deposit will be returned to the customer, if the customer reaches its demand of 140 kVA within the first five years (i.e. after each year a portion of the expansion deposit will be given back relative to the demand realized). For the case study, the customer will receive the full amount back after the first year of operation.

80 calendar days CAD 44,363

5 Await completion of external works by contractor

Agency : Contractor

While Toronto Hydro finishes its part of the connection works an electrical contractor proceeds with his part of the works. The contractor's work includes: a) Install padmounted structure on customer property. (b) Construct underground ducts from padmounted structure to join ducts provided by Toronto Hydro at property line and construct ducts underground from padmounted structure to Customer building. (c) Install secondary cable from padmounted transformer to building.

Await and receive inspection of internal wiring

Agency : Electrical Safety Authority

An inspection of internal wiring is required and can be performed by the Electrical Safety Authority at any time during rough in and final stages of the process so there are at least two inspections of the internal wiring. The inspection would be performed by the Electrical Safety Authority, who in turn would submit a "Turn On Notice" to Toronto Hydro. This allows Toronto Hydro to provide the final connection of power to the facility in question.

14 calendar days CAD 20,500

1 calendar day CAD 650

7 Await final inspection, meter installation and final connection

Agency : Toronto Hydro

Once Toronto Hydro receives the connection authorization, the final inspection is performed during meter installation and the final connection can be made. There is no separate supply contract to be signed. The supply contract is signed at the same time as the connection contract in one contract.

7 calendar days CAD 0

Takes place simultaneously with previous procedure.

Details – Getting Electricity in Canada – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

  • Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)

  • Registration procedures in the economy's largest business city.

  • Postregistration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of property value)

  • Official costs only (such as administrative fees, duties and taxes).

  • Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0-30)

  • Reliability of infrastructure index (0-8)

  • Transparency of information index (0–6)

  • Geographic coverage index (0–8)

  • Land dispute resolution index (0–8)

  • Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

  • Are limited liability companies (or the legal equivalent).

  • Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Are 100% domestically and privately owned.

  • Perform general commercial activities.

    The property (fully owned by the seller):

  • Has a value of 50 times income per capita, which equals the sale price.

  • Is fully owned by the seller.

  • Has no mortgages attached and has been under the same ownership for the past 10 years.

  • Is registered in the land registry or cadastre, or both, and is free of title disputes.

  • Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.

  • Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.

  • Will not be subject to renovations or additional construction following the purchase.

  • Has no trees, natural water sources, natural reserves or historical monuments of any kind.

  • Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.

  • Has no occupants, and no other party holds a legal interest in it.

Registering Property – Canada

Registering Property - Canada

Figure – Registering Property in Canada and comparator economies – Ranking and Score

Registering Property in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Canada – Procedure, Time and Cost

Registering Property in Canada – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Figure – Registering Property in Canada and comparator economies – Measure of Quality

Registering Property in Canada and comparator economies – Measure of Quality

Details – Registering Property in Canada – Procedure, Time and Cost

1 Obtain tax clearance and utility certificate from the Municipality

Agency : Municipality

The parties must show reasonable evidence to the title insurance company that the property is clear of tax obligations. A written tax clearance certificate should be obtained from the Municipality. It can be obtained online, and the applicant will receive the certificate by email after two business days. The certificate will need to show the latest tax receipts including the amount of current year taxes and whether all taxes are paid to date. Verbal confirmation that real property taxes have been paid will also suffice. To confirm verbally that the real property taxes have been paid, a Tax Certificate must be requested and paid for, and in most cases, it commonly takes more than 1 business day to process. Real property taxes are required to be paid up to the date of the transfer of the property.

2 days

CAD 121.46; (CAD 68.65

Tax clearance certificate CAD 52.81 Utility clearance certificate)

At the same time, a utility clearance certificate is obtained online to confirm balance owing on a

2 Obtain a copy of parcel register and search for writs

Agency : Land registry

A copy of Parcel Register and search for Writs filed against the seller are obtained online through service providers.

Less than one day, online

CAD 41.13; (CAD 30.05

(Parcel Register)

CAD 11.80 (Search for Writs))

3 Obtain a status certificate for the selling corporation

Agency : Provincial government

The buyer's solicitor obtains a Status Certificate from the provincial government or the federal government.

4 Conduct title search

Agency : Teraview

Depending on whether the property is located in a jurisdiction governed by the Land Titles Act or the Registry Act or by electronic registration, in the absence of title insurance, a simple title search will cost CAD 2,000, and more difficult searches can cost CAD 10,000 or more.

In terms of additional investigations: (a) an environmental report would cost between CAD 1,500 to CAD 3,000; (b) a building inspection would take 10 to 21 days and would cost CAD 2,500 to CAD 10,000; and (c) a zoning review by a planning consultant would take between 1 day and 14 days and would cost between CAD 2,000 and CAD 10,000.

Title insurance can be obtained for CAD 0.75/CAD 1000 of the purchase price if the purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of the purchase price if the purchase price is less than CAD 2,000,000.

  1. day CAD 40; (CAD 26 (the fee of status certificate in case of the province of Ontario) CAD 14 (the service provider fee, the fee differs by providers))

  2. days CAD 2,000

5 Registration of the transfer of title

Agency : Purchaser's solicitor or Land registry

After the agreement has been prepared and the transaction closed, the parties’ solicitors will complete the registration for transfer of title. Electronic registration governs more than 90% of properties in Toronto. In the electronic registration regime, the transfer is registered electronically by an authorized licensee at the offices of the purchaser’s solicitor. Only authorized licensees have access to the electronic registration system for security reasons.

Less than one day,

online

The payment of registration fee and the Land Transfer Tax is done electronically if it is in the electronic regime. Solicitor’s fees for their representation in the whole process are estimated at CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s solicitor).

Notification of change of ownership to assessment department and utility companies can be done the same day immediately after closing but should be arranged before closing to ensure continuity

of services.

CAD 111,178.83; (CAD

76.55 (electronic registration fee) + Provincial Land Transfer Tax + Municipal Land Transfer Tax + CAD 79.5 (Municipal administrative fee)

Provincial Land Transfer Tax is calculated through a progressive scale:

For a property valued under CAD 55,000: 0.5%

From CAD 55,000, up to and including CAD 250,000: 1.0%

From CAD 250,000, up to and including CAD 400,000: 1.5%

Over CAD 400,000: 2.0%

Municipal Land Transfer Tax for the City of Toronto is calculated through the following scheme plus an administration fee of CAD 79.05

For a property valued under CAD 55,000: 0.5%

From CAD 55,000, up to and including CAD 250,000: 1.0%

From CAD 250,000, up to and including CAD 400,000: 1.5%

Over CAD 400,000: 2.0%)

Takes place simultaneously with previous procedure.

Details – Registering Property in Canada – Measure of Quality

registering property in canada measure of quality registering property in canada measure of quality

Do married men and married women have equal ownership rights to property? Yes 0.0

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Strength of legal rights index (0–12)

  • Rights of borrowers and lenders through collateral laws (0-10)

  • Protection of secured creditors’ rights through bankruptcy laws (0-2)

Depth of credit information index (0–8)

  • Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

Credit bureau coverage (% of adults)

  • Number of individuals and firms listed in largest credit bureau as a percentage of adult population

Credit registry coverage (% of adults)

  • Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

  • ABC is a domestic limited liability company (or its legal equivalent).

  • ABC has up to 50 employees.

  • ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Getting Credit – Canada

Getting Credit - Canada

Figure – Getting Credit in Canada and comparator economies – Ranking and Score

Getting Credit in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Canada and comparator economies

Figure – Legal Rights in Canada and comparator economies

Details – Legal Rights in Canada

Legal Rights in Canada

Figure – Credit Information in Canada and comparator economies

Credit Information in Canada and comparator economies

Details – Credit Information in Canada

Credit Information in Canada

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Coverage

Credit bureau

Credit registry

Number of individuals

31,346,536

0

Number of firms

2,174,280

0

Total

33,520,816

0

Percentage of adult population

100.0

0.0

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

  • Extent of disclosure index (0–10): Disclosure, review, and approval requirements for related-party transactions

  • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal remedies (damages, disgorgement of profits, disqualification from managerial position(s) for one year or more, rescission of the transaction)

  • Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses

  • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices

  • Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions

  • Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment

  • Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects

  • Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices

  • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

  • Is a publicly traded corporation listed on the economy’s most important stock exchange.

  • Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not specifically required by law.

  • Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.

  • Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.

  • Is a manufacturing company with its own distribution network.

    The transaction involves the following details:

  • Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s five-member board.

  • Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.

  • Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.

  • The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.

  • Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.

  • The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

Protecting Minority Investors – Canada

Protecting Minority Investors - Canada

Figure – Protecting Minority in Canada – Score

Figure – Protecting Minority in Canada – Score

Figure – Protecting Minority Investors in Canada and comparator economies – Ranking and Score

Figure – Protecting Minority in Canada – Score

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Canada and comparator economies – Measure of Quality

Protecting Minority Investors in Canada and comparator economies – Measure of Quality

Details – Protecting Minority Investors in Canada – Measure of Quality

protecting minority Investors in Canada measure of quality protecting minority Investors in Canada measure of quality

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

  • Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)

  • Method and frequency of filing and payment

Time required to comply with 3 major taxes (hours per year)

  • Collecting information, computing tax payable

  • Preparing separate tax accounting books, if required

  • Completing tax return, filing with agencies

  • Arranging payment or withholding

Total tax and contribution rate (% of commercial profits)

  • Profit or corporate income tax

  • Social contributions, labor taxes paid by employer

  • Property and property transfer taxes

  • Dividend, capital gains, financial transactions taxes

  • Waste collection, vehicle, road and other taxes

Postfiling Index

  • Time to comply with VAT refund (hours)

  • Time to obtain VAT refund (weeks)

  • Time to comply with a corporate income tax correction (hours)

  • Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

  • TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

The VAT refund process:

  • In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

The corporate income tax audit process:

  • An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

Paying Taxes – Canada

Indicator

Canada

OECD high income

Best Regulatory Performance

Payments (number per year)

8

10.3

3 (2 Economies)

Time (hours per year)

131

158.8

49 (3 Economies)

Total tax and contribution rate (% of profit)

24.5

39.9

26.1 (33 Economies)

Postfiling index (0-100)

73.2

86.7

None in 2018/19

Figure – Paying Taxes in Canada – Score

Figure – Paying Taxes in Canada – Score

Figure – Paying Taxes in Canada and comparator economies – Ranking and Score

Paying Taxes in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Canada and comparator economies – Measure of Quality

Paying Taxes in Canada and comparator economies – Measure of Quality

Details – Paying Taxes in Canada – Tax by Type

Paying Taxes in Canada Tax by Type

Details – Paying Taxes in Canada – Measure of Quality

Details – Paying Taxes in Canada – Measure of Quality

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Documentary compliance

  • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy

  • Obtaining, preparing and submitting documents required by destination economy and any transit economies

  • Covers all documents required by law and in practice, including electronic submissions of information

Border compliance

  • Customs clearance and inspections

  • Inspections by other agencies (if applied to more than 20% of shipments)

  • Handling and inspections that take place at the economy’s port or border

Domestic transport

  • Loading or unloading of the shipment at the warehouse or port/border

  • Transport between warehouse and port/border

  • Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

Assumptions of the case study:

  • For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.

  • It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.

  • The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.

  • All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.

  • A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.

  • Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Trading across Borders – Canada

trading across borders canada

Figure – Trading across Borders in Canada – Score

Figure – Trading across Borders in Canada – Score

Figure – Trading across Borders in Canada and comparator economies – Ranking and Score

Figure – Trading across Borders in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Canada – Time and Cost

Trading across Borders in Canada – Time and Cost

Details – Trading across Borders in Canada

Details – Trading across Borders in Canada

Details – Trading across Borders in Canada – Components of Border Compliance

Trading across Borders in Canada Components of Border Compliance

Details – Trading across Borders in Canada – Trade Documents

Trading across Borders in Canada – Trade Documents

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to enforce a contract through the courts (calendar days)

  • Time to file and serve the case

  • Time for trial and to obtain the judgment

  • Time to enforce the judgment

Cost required to enforce a contract through the courts (% of claim value)

  • Average attorney fees

  • Court costs

  • Enforcement costs

Quality of judicial processes index (0-18)

  • Court structure and proceedings (-1-5)

  • Case management (0-6)

  • Court automation (0-4)

  • Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

  • The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.

  • The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.

  • The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.

  • The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.

  • The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.

  • The judge decides in favor of the seller; there is no appeal.

  • The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Enforcing Contracts – Canada

Enforcing Contracts - Canada

Figure – Enforcing Contracts in Canada – Score

Figure – Enforcing Contracts in Canada – Score

Figure – Enforcing Contracts in Canada and comparator economies – Ranking and Score

Enforcing Contracts in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Canada – Time and Cost

Enforcing Contracts in Canada – Time and Cost

Figure – Enforcing Contracts in Canada and comparator economies – Measure of Quality

Enforcing Contracts in Canada and comparator economies – Measure of Quality

Details – Enforcing Contracts in Canada

Enforcing Contracts in Canada

Details – Enforcing Contracts in Canada – Measure of Quality

Enforcing Contracts in Canada – Measure of Quality Enforcing Contracts in Canada – Measure of Quality

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019.See the methodology for more information.

What the indicators measure

Time required to recover debt (years)

  • Measured in calendar years

  • Appeals and requests for extension are included

Cost required to recover debt (% of debtor’s estate)

  • Measured as percentage of estate value

  • Court fees

  • Fees of insolvency administrators

  • Lawyers’ fees

  • Assessors’ and auctioneers’ fees

  • Other related fees

    To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

    • A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.

    • The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.

    • The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

    In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

    Outcome

  • Whether business continues operating as a going concern or business assets are sold piecemeal

    Recovery rate for creditors

  • Measures the cents on the dollar recovered by secured creditors

  • Outcome for the business (survival or not) determines the maximum value that can be recovered

  • Official costs of the insolvency proceedings are deducted

  • Depreciation of furniture is taken into account

  • Present value of debt recovered

    Strength of insolvency framework index (0- 16)

  • Sum of the scores of four component indices:

  • Commencement of proceedings index (0-3)

  • Management of debtor’s assets index (0-6)

  • Reorganization proceedings index (0-3)

  • Creditor participation index (0-4)

Resolving Insolvency – Canada

Resolving Insolvency - Canada

Figure – Resolving Insolvency in Canada – Score

Resolving Insolvency in Canada – Score

Figure – Resolving Insolvency in Canada and comparator economies – Ranking and Score

Resolving Insolvency in Canada and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Canada – Time and Cost

Resolving Insolvency in Canada – Time and Cost

Figure – Resolving Insolvency in Canada and comparator economies – Measure of Quality

Resolving Insolvency in Canada and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Canada and comparator economies – Recovery Rate

Resolving Insolvency in Canada and comparator economies – Recovery Rate

Details – Resolving Insolvency in Canada

Indicator

Answer

Score

Proceeding

reorganization

Mirage management will initiate reorganization proceedings under the Bankruptcy and Insolvency Act, most likely in

consultation with the Bank. This will give the hotel the best chance to continue operating and allow Mirage to restructure its operations, raise money from additional sources or negotiate with the current creditors.

Outcome going concern Continued operation of a restructured business or sale as a going concern are the most likely outcomes of the

Time (in years)

0.8

The maximum time permitted for a reorganization under the BIA is 6 months (statutory limit). Mirage would make an application to the court for reorganization under the BIA, and then Mirage´s reorganization plan would be negotiated and developed. The initial order granting protection under the BIA proceedings will contain a broad stay of proceedings against all creditors. The stay of proceedings is initially of 30 days and can be extended by court order. Assuming that

there are any oppositions or appeals, the process will last 9 months.

restructuring proceedings. More than half of the businesses undergoing reorganization in Canada survive the proceedings as a going concern. BizBank (secured creditor) will be interested in maximizing the value of the hotel and unsecured creditors will likely support a restructuring plan as the only way to receive satisfaction of their claims.

Recovery rate

(cents on the dollar)

86.7

Cost (% of estate) 7.0 Major expenses include attorneys' fees (around CAD 200,000) and remuneration of the insolvency representative (around CAD 250,000).

Details – Resolving Insolvency in Canada – Measure of Quality

Resolving Insolvency in Canada Measure of Quality Resolving Insolvency in Canada Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

  • Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.

  • Is a full-time employee.

  • Is not a member of the labor union, unless membership is mandatory.

The business:

  • Is a limited liability company (or the equivalent in the economy).

  • Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Has 60 employees.

  • Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.

  • Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Canada

Details – Employing Workers in Canada

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? No

Maximum length of a single fixed-term contract (months)No limit

Maximum length of fixed-term contracts, including renewals (months) No limit

Minimum wage applicable to the worker assumed in the case study (US$/month) 1844.0

Maximum length of probationary period (months) 3.0

Ratio of minimum wage to value added per worker 0.3

Working hours

Standard workday 8.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 0.0

Premium for work on weekly rest day (% of hourly pay) 0.0

Premium for overtime work (% of hourly pay) 50.0

Restrictions on night work? No

Restrictions on weekly holiday? No

Restrictions on overtime work?Yes

Paid annual leave for a worker with 1 year of tenure (working days) 10.0

Paid annual leave for a worker with 5 years of tenure (working days) 15.0

Paid annual leave for a worker with 10 years of tenure (working days) 15.0

Redundancy rules

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 13.3

Third-party notification if one worker is dismissed? No

Dismissal due to redundancy allowed by law? Yes

Third-party notification if nine workers are dismissed?No

Third-party approval if one worker is dismissed? No

Retraining or reassignment obligation before redundancy? No

Third-party approval if nine workers are dismissed? No

Priority rules for reemployment? No

Priority rules for redundancies?No

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 2.0

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 5.0

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 8.0

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)5.0

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 5.0

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 10.0

Unemployment protection after one year of employment? Yes

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 5.0

PEO Canada

Canada is an attractive destination for global businesses seeking professional employer organization (PEO) services due to its robust and business-friendly environment. As a PEO country, Canada offers a highly skilled and diverse workforce, making it easier for companies to find the right talent for their specific needs. The country’s well-developed infrastructure, stable political climate, and strong economy further contribute to its appeal as a PEO destination. Additionally, Canada’s progressive employment laws and regulations provide a solid framework for PEO companies to operate within, ensuring compliance and smooth operations for both employers and employees. With its commitment to innovation and technology, coupled with a high standard of living, Canada stands out as a premier choice for companies looking to expand their global presence and leverage the benefits of PEO services

PEO (Professional Employer Organization) services in Canada offer comprehensive human resources and employment solutions to companies looking to expand their operations in the country. These services are especially beneficial for foreign businesses that may be unfamiliar with the intricacies of the Canadian job market and labor laws. PEOs in Canada act as the employer of record for their clients, assuming responsibility for HR functions such as payroll, benefits administration, tax compliance, and employment contracts. By outsourcing these critical tasks to a PEO, companies can streamline their operations, reduce administrative burdens, and focus on their core competencies. PEO services in Canada also ensure that client companies remain compliant with local labor regulations, mitigating the risk of legal issues and penalties. This allows businesses to enter the Canadian market with confidence, knowing they have a trusted partner to navigate the complexities of the Canadian workforce and HR landscape.

Business Reforms in Canada

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2019

Enforcing Contracts: Canada made enforcing contracts easier by introducing an e-system that allows plaintiffs to file the initial complaint and pay court fees electronically.

Employing Workers: Canada amended its legislation to increase paid annual leave after five and ten years of employment and introduce two days of paid sick leave.

DB2018

< Dealing with Construction Permits: Canada made dealing with construction permits more expensive by increasing fees for site plan approval and building permits.

< Registering Property: Canada made registering property more expensive by increasing the Municipal and Provincial Land Transfer Tax (MLTT) Rates.

DB2013

Getting Electricity: Canada made getting an electricity connection easier by reducing the time needed for external connection works.

DB2012

Paying Taxes: Canada made paying taxes easier and less costly for companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes.

DB2011

Paying Taxes: Canada harmonized the Ontario and federal tax returns and reduced the corporate and employee tax rates.

Enforcing Contracts: Canada increased the efficiency of the courts by expanding electronic document submission and streamlining procedures.

DB2009

Starting a Business: Canada made starting a business easier by making it possible to complete registration processes online in 1 simple procedure.

Paying Taxes: Canada made paying taxes less costly for companies by lowering the general corporate income tax rate, introducing accelerated depreciation for various assets and reducing the goods and service tax rate and the small-business tax rate.

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