Canada: contracts, corporate, trademarks and employment
Canada splits corporate and employment law between the federal government and the provinces. Groups incorporate federally under the Canada Business Corporations Act or provincially in British Columbia or Ontario, and employ people under provincial employment standards. Trade marks are federal through CIPO and, since 2019, follow a first-to-file model with no use requirement at registration.
LegalMatrix prepares documents on its AI-assisted workflow and delivers in Canada through a Canadian law firm engaged as its delivery partner. Every document is reviewed and signed off by a lawyer called to the bar of British Columbia or Ontario (as applicable) before release. Trade mark searches and CIPO filings are handled by a registered Canadian trademark agent.
Contracts
| Topic | Essentials |
|---|---|
| Governing law | Contract law is provincial common law outside Quebec (Quebec is a civil law jurisdiction with French language rules and is not covered by LegalMatrix products). Parties may choose the governing law and forum; Ontario and British Columbia law are commonly chosen and their courts enforce foreign choices of law subject to local mandatory rules. |
| Language | English in British Columbia and Ontario. Quebec's Charter of the French Language imposes French-language requirements that apply if a contract is used in Quebec. |
| Electronic signature | Each province has an electronic commerce statute: the Ontario Electronic Commerce Act, 2000 and the British Columbia Electronic Transactions Act (SBC 2001, c. 10) give electronic signatures legal effect where the parties consent. Part 2 of the federal PIPEDA covers documents under federal statutes and introduces the secure electronic signature for specified federal purposes. Exclusions typically cover wills and codicils, trusts created by wills, powers of attorney for personal care or property, negotiable instruments and documents of title, and some land registry documents, which follow their own electronic filing rules. Check the authority. |
- Provincial Sale of Goods Acts imply conditions and warranties in sales of goods that can be excluded between businesses.
- Consumer protection statutes (for example Ontario's Consumer Protection Act, 2002) override contract terms in consumer dealings.
- Corporations may sign by any authorised officer; corporate seals are optional.
- Interest on overdue amounts must state an annual rate to be enforceable under the federal Interest Act.
Corporate
| Topic | Essentials |
|---|---|
| Director duties | Under the CBCA (section 122) and the equivalent provisions of the Ontario Business Corporations Act and British Columbia Business Corporations Act, directors must act honestly and in good faith with a view to the best interests of the corporation and exercise the care of a reasonably prudent person. The CBCA requires at least 25 per cent of directors to be resident Canadians; Ontario and British Columbia impose no residency requirement. |
| Shareholder rights | Ordinary resolutions pass by majority and special resolutions by two-thirds of votes cast. Shareholders may sign a unanimous shareholder agreement that restricts directors' powers, have dissent and appraisal rights on fundamental changes, and may seek the oppression remedy (CBCA section 241), which is broad and frequently used in private company disputes. |
| Share transfers | A private company's articles restrict share transfers (usually requiring board approval) so that it qualifies as a private issuer under securities law. Transfers are recorded in the central securities register; no transfer tax applies. Every issuance and transfer must fit a prospectus exemption under National Instrument 45-106. |
- CBCA corporations file their individuals with significant control with Corporations Canada, and most of that information is public; British Columbia maintains a transparency register with public search. Check the authority.
- Annual returns are filed with Corporations Canada or the provincial registry in addition to tax returns.
- Ontario's Business Corporations Act removed its director residency requirement in 2021, which made Ontario incorporation practical for foreign-owned groups.
- Stock option deductions and the taxation of employee equity follow the federal Income Tax Act; proposals to change the deduction have been announced and withdrawn in recent years, so check the Canada Revenue Agency.
Trademarks
| Topic | Essentials |
|---|---|
| Authority | Canadian Intellectual Property Office (CIPO) |
| System | First to file since June 2019. Use is not required to register, but a registration may be expunged for non-use after three years (section 45). |
| Time to registration | Approximately 18 to 36 months from filing to registration; CIPO has carried an examination backlog for several years. Check the authority for current wait times. |
| Classes | Nice Classification is mandatory. Fees are a base amount for the first class plus an additional fee per class; check the authority. |
| Opposition | 2 months from advertisement in the Trademarks Journal, extendable on request. |
| Term | 10 years from registration, renewable for further 10-year periods. |
- Trademark agents are regulated by the College of Patent Agents and Trademark Agents; applicants outside Canada must appoint a registered Canadian trademark agent.
- Canada is a member of the Madrid Protocol.
- Examination covers absolute grounds, confusion with earlier marks and, since 2019, distinctiveness.
- The scope of goods and services cannot be broadened after filing.
Employment
| Topic | Essentials |
|---|---|
| Probation | Employment standards legislation in Ontario and British Columbia requires no statutory notice during the first three months of employment; a contractual probation clause should say what happens in that window. Common law reasonable notice can still apply unless excluded by a valid termination clause. |
| Notice | Ontario: 1 week after 3 months, rising by one week per year of service to 8 weeks, plus severance pay for larger employers. British Columbia: 1 week after 3 months, 2 weeks after 12 months, 3 weeks after 3 years plus one week per further year to a maximum of 8 weeks. Courts add common law reasonable notice (often months) unless the contract validly limits it. Check the authority. |
| Non-compete | Ontario prohibits non-compete agreements with employees entered into on or after 25 October 2021 (Employment Standards Act, 2000), with exceptions for the sale of a business and for executives holding chief-officer titles. British Columbia and federally regulated employers rely on the common law, which enforces a non-compete only where it is unambiguous and reasonable in time, territory and scope. Non-solicitation clauses remain available. |
| Equity | Option plans are adopted by the board with shareholder approval where required by the articles or an existing shareholders' agreement. Securities law provides an employee exemption for grants (NI 45-106). Tax treatment follows the Income Tax Act stock option rules, with different timing for Canadian-controlled private corporations; check the Canada Revenue Agency. |
Products available here
Contracts: drafting and review
Counterparty Contract Review
Negotiation Playbook
Go-to-Market Contract Bundle
NDA Set
Master Services Agreement and SOW
Data Processing Agreement
Successor Programme Document Set
Shareholders' Agreement
Subscription and Share Transfer Documents
Intercompany Services Agreement
Board and Shareholder Resolutions Pack
Cross-Border Employment Contract
Secondment Agreement
Employee Share Option Plan
Executive Equity Grant
Family Holding and Trust Documents
IP rights: applications and portfolio
Trade Mark Search and Filing
Patentability Assessment
Copyright Registration
IP Assignment and Licence
Technology Licence Agreement
IP Portfolio Management
Renewals and Annuities
Trademark Watch
Questions
Federal (CBCA), British Columbia or Ontario?
The CBCA gives a national name and is familiar to investors but requires 25 per cent resident Canadian directors. British Columbia and Ontario have no residency requirement, which suits foreign-owned subsidiaries. LegalMatrix documents work with all three.
Are non-competes banned across Canada?
No, only in Ontario (with narrow exceptions) and only for agreements made from 25 October 2021. Elsewhere they are enforceable if reasonable, though courts read them strictly.
Why does a Canadian trade mark take so long?
CIPO's examination queue has been long since the 2019 reforms. Filing early, using pre-approved descriptions and responding promptly to examiner reports shorten the path; LegalMatrix gives an estimate at intake based on CIPO's published wait times.
Do we need a Canadian trademark agent?
Yes if you have no Canadian address; the agent must be registered with the College of Patent Agents and Trademark Agents. LegalMatrix's partner handles this.
Can a termination clause limit notice to the statutory minimum?
Yes if drafted correctly. Ontario courts void clauses that could breach the Employment Standards Act in any scenario, so the wording must be precise; this is a core part of the LegalMatrix cross-border employment contract for Canada.
Is there a beneficial ownership register?
Yes. CBCA corporations file their individuals with significant control with Corporations Canada and British Columbia companies maintain a transparency register; Ontario companies keep a register at the registered office. Check the authority for which fields are public.
Guides
Sources
- Canadian Intellectual Property Office: trademarks guide ↗
- Corporations Canada ↗
- Ontario: non-compete agreements (Employment Standards Act guide) ↗
- BC Registries and Online Services ↗
- BC Employment Standards: termination ↗
- College of Patent Agents and Trademark Agents ↗
Reviewed 26 October 2026. Rules and fees change; confirm with the authority before relying on them.
Documents and filings for Canada
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