Submitted by inclawyers on Tue, 10/10/2006 - 10:50am
It does take money to make money. The founders of a start-up business will be the first to provide money, but once they've drawn on their credit cards or mortgaged their house and run through their family and friends, where will they turn to next? Most businesses won't want, or be able, to attract financing from venture capital firms or angel investors, or go to the trouble of trying to raise equity through a more or less formal share offering under the securities laws. So, in Canada, many small businesses turn to the banks.
Submitted by inclawyers on Tue, 03/10/2006 - 3:03pm
We incorporate a lot of Canadian corporations that have non-residents as directors or shareholders of the corporation. And, although it's easy for most non-residents to create or take part in Canadian companies, it's perhaps not so easy to be aware of the Canadian income tax rules that apply when the company wants to pay money to or for non-residents. One of those rules has to do with "withholding tax", which is sometimes called "Part XIII" tax for the section of the Income Tax Act (Canada) in which it arises.