| Canada: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation | ||
| Indicators | Score | |
| 67 | Are business licenses available to all citizens? | 88 |
| 68 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | 100 |
| 69 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | 75 |
Indicator and sub-Indicator Details
| 67 | Are business licenses available to all citizens? | |||||||
| 67a: In law, anyone may apply for a business license. | ||||||||
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Comments: References: - Anyone can set up a business as an unincorporated self-employed person or sole proprietorship in many fields, and incorporation can be done on-line or in writing. See details at: [ LINK ])=en&cid=1081944192533&c=Regs - However, many businesses require licenses (most of which are controlled by Canadian provinces, not the federal government, as a result of the division of powers within the Canadian constitution). See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Municipalities also may have license requirements or regulations for some businesses. See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Businesses that the federal government licenses are limited in number (and usually require as a limitation that applicants have a "good business record" to be licensed) and include: banks (under the Bank Act); life and health insurance companies (under the Insurance Companies Act), trust companies (under the Trust Companies Act); mining companies (under the Mining Act); broadcast companies (under the Broadcasting Act); phone companies (under the Telecommunications Act); fishery companies (under the Fisheries Act); transportation (under the Transportation Act) - Also, the federal government licenses importing and exporting. See details at: [ LINK ])=en - It regulates intellectual property (patents, trademarks and copyright). See details at: [ LINK ])=en - The federal government does regulate several business sectors that it does not license (mainly in terms of food and product safety). See details at: [ LINK ])=en - Overall, however, no particular group or category of citizens are excluded in law from applying for a business license.
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| 67b: In law, a complaint mechanism exists if a business license request is denied. | ||||||||
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Comments: References: See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet
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| 67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period. | ||||||||
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Comments: References: - Business licensing through the processes set out below takes about a month (for smaller businesses) but for larger businesses (banks, broadcasting companies) can take about one year (see Web sites listed below for details). - Anyone can set up a business as an unincorporated self-employed person or sole proprietorship in many fields, and incorporation can be done on-line or in writing. See details at: [ LINK ])=en&cid=1081944192533&c=Regs - However, many businesses require licenses (most of which are controlled by Canadian provinces, not the federal government, as a result of the division of powers within the Canadian constitution). See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Municipalities also may have license requirements or regulations for some businesses. See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Businesses that the federal government licenses are limited in number (and usually require as a limitation that applicants have a "good business record" to be licensed) and include: banks (under the Bank Act); life and health insurance companies (under the Insurance Companies Act), trust companies (under the Trust Companies Act); mining companies (under the Mining Act); broadcast companies (under the Broadcasting Act); phone companies (under the Telecommunications Act); fishery companies (under the Fisheries Act); transportation (under the Transportation Act) - Also, the federal government licenses importing and exporting. See details at: [ LINK ])=en - It regulates intellectual property (patents, trademarks and copyright). See details at: [ LINK ])=en - The federal government does regulate several business sectors that it does not license (mainly in terms of food and product safety). See details at: [ LINK ])=en
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| 67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost. | ||||||||
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Comments: References: - Some licensing fees for setting up the businsses through the processes set out below are high in Canada, the main purpose being to ensure that the applicant has the resources to succeed in the business sector (such as banking, broadcasting, fishery, telecommunications companies). These licensing fees are criticized as unjustifiable barriers to competition. See for background the following submission to a parliamentary committee: [ LINK ] - Anyone can set up a business as an unincorporated self-employed person or sole proprietorship in many fields, and incorporation can be done on-line or in writing. See details at: [ LINK ])=en&cid=1081944192533&c=Regs - However, many businesses require licenses (most of which are controlled by Canadian provinces, not the federal government, as a result of the division of powers within the Canadian constitution). See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Municipalities also may have license requirements or regulations for some businesses. See details at: [ LINK ])=en&pagename=CBSC_ON%2Fdisplay&c=GuideFactSheet - Businesses that the federal government licenses are limited in number (and usually require as a limitation that applicants have a "good business record" to be licensed) and include: banks (under the Bank Act); life and health insurance companies (under the Insurance Companies Act), trust companies (under the Trust Companies Act); mining companies (under the Mining Act); broadcast companies (under the Broadcasting Act); phone companies (under the Telecommunications Act); fishery companies (under the Fisheries Act); transportation (under the Transportation Act) - Also, the federal government licenses importing and exporting. See details at: [ LINK ])=en - It regulates intellectual property (patents, trademarks and copyright). See details at: [ LINK ])=en - The federal government does regulate several business sectors that it does not license (mainly in terms of food and product safety). See details at: [ LINK ])=en
Peer Review Comments: According to Industry Canada, the cost of incorporation is $200 online, or $250 in person -- which is considered reasonable. However, it is recognized that incorporation incurs higher start-up costs than does business that operates as a sole proprietorship or partnership. "Some of these costs are directly related to the process of setting up the corporation, while others can include professional fees paid for legal and accounting services," says Industry Canada. See: [ LINK ]
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| 68 | Are there transparent business regulatory requirements for basic health, environmental, and safety standards? | |||||||
| 68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available. | ||||||||
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Comments: References: - See for details under "Labelling" and "Specific Regulations" at: [ LINK ])=en
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| 68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available. | ||||||||
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Comments: References: - See for details under "Labelling" and "Specific Regulations" at: [ LINK ])=en
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| 68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available. | ||||||||
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Comments: References: - See for details under "Labelling" and "Specific Regulations" at: [ LINK ])=en
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| 69 | Does government effectively enforce basic health, environmental, and safety standards on businesses? | |||||||
| 69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: - However, due to limited resources in every inspection department, of course the choice is made to inspect larger businesses more because of the greater potential for those businesses to create large problems through non-compliance. Another choices is to give larger businesses more time to comply after a problem is found because of the disruption that shutting down such a business could have in the marketplace. - See for background the Canadian Public Health Association Web site -- [ LINK ] - See, for example of uneven inspection standards, the following background information from Environment Probe: [ LINK ] References: - An extensive Internet search found no blatant examples during the study period of uneven inspection patterns for enforcement of public health standards.
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| 69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: - However, due to limited resources in every inspection department, of course the choice is made to inspect larger businesses more because of the greater potential for those businesses to create large problems through non-compliance. Another choices is to give larger businesses more time to comply after a problem is found because of the disruption that shutting down such a business could have in the marketplace. - See, for examples of concerns about this type of uneven enforcement of public environmental standards, the Web Sites of the groups in the Canadian Environmental Network at: [ LINK ] References: - An extensive Internet search found no blatant examples during the study period of uneven inspection patterns for enforcement of public health standards.
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| 69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner. | ||||||||
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Comments: - However, due to limited resources in every inspection department, of course the choice is made to inspect larger businesses more because of the greater potential for those businesses to create large problems through non-compliance. Another choices is to give larger businesses more time to comply after a problem is found because of the disruption that shutting down such a business could have in the marketplace. References: - An extensive Internet search found no blatant examples during the study period of uneven inspection patterns for enforcement of public health standards.
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