Expanding a Business from UK in Canada (International Business Law) Essay

Expanding a Business from UK in Canada (International Business Law) - Essay Example All other important legal and labor details pertaining to the creation of the business will be included in this report. Background Alan Brandon, who has a stake in several UK companies plan to expand two of his companies by opening either a branch or a subsidiary in Canada. These two companies are doing well in the past three years and he believes that it be profitable to start expanding abroad. The two companies are Definitely-Maybe PLC, a public limited company that produces chocolates and Ultra-educators Software Limited, a Software services company that designs educational Software. The Board of Directors has given their go signal to expand given the report of Mr. Brandon’s team that the business is feasible in Canada and is likely to succeed. This report is made, at Mr. Alan Brandon’s behest, to show to the Board of Directors what is in store for them when they bring the business in Canada. Objectives It is the objective of this paper to show to the mother companie s of both UK-based Definitely-Maybe and Ultra-Educators what entails the expansion of their businesses from UK to Canada in terms of new jurisdiction, legal, sale, technical and tax aspects. This report is basically presented from the legal perspective to ensure the management of possible legal risks. Failure to do so could result into substantial impact on the profitability or commercial transactions that could be detrimental to the life of the company. Scope This report will be enumerating the possible risks Definitely-Maybe may be exposed to if it embarks on the exportation of chocolates to Canada. It will also present the options open to Ultra-Educators in terms of the form of corporate entity that is best suited to it in Canada, including the details and requirements in implementing it. This report will also touch on the treaties and agreements that could be applied to the business and how it may benefit the company as well as the other pertinent labor and immigration issues th at the new companies are likely to come across with. Results Importing Chocolates in Canada It is considered to be a regulated activity if commercial goods are imported into Canada. The government agency in charge of such activity is the Canada Border Services Agency. It is the entity that enforces the regulations for import. Before a company can begin importing products to Canada, an import/export number must first be obtained from the Canada Revenue Agency (CRA) and added to the company’s regular business number. Second, the products to be imported must be identified clearly and explicitly. In what country the products are from and in what country they are manufactured must also be determined. The company must see to it that the products are not prohibited in being imported to Canada. Examples of such products include products manufactured by prisoners, reprints of Canadian works with copyright protection, certain birds, counterfeit currencies, all kinds of second-hand airc rafts, with no exceptions, all kinds of second-hand automobiles, except those from the US, all materials regarded as child pornography, hate propaganda, rebellious, treasonable, or obscene, etc. Next, the company should see whether or not the products to be imported are subject to other requirements or restrictions. Once the company has guaranteed that the products can be legally imported to