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Irwin Law
Irwin Law, Attorney
Category: Business Law
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Experience:  30+ yrs. representing small business, real estate, probate
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Is it legal under Canadian law for a US corporation to hold

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Is it legal under Canadian law for a US corporation to hold blanket distribution rights in Canada for a product manufactured in China if the corporation has no said ownership of the product and is solely a distributor?
Yes it is. The contract is between the U.S.Corp. and the manufacturer, wherever it is located (China?). The distribution rights can be world wide. The U.S. Corp merely has to follow Canada's regulations for doing business in Canada such as registering, filing and paying taxes etc...
I hope that this information is helpful. Please click on a smiley face so that I will be compensated for assisting you. If you have a follow up question please send me back a Reply without entering any rating. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using Pearl.Com- Just Answer. Your business is appreciated.




Hello again. You have now read my Answer to the question that you previously submitted. If you need further explanation or more information, please send a Reply to this. If not, then I hope that you will enter a positive rating for my Answer so that I can receive compensation. Thanks again for using Pearl.Com- Just Answer. We appreciate your business.
Customer: replied 3 years ago.

Hi Sorry about the delay, So what if this American company does not have offices in Canada. So it does not have business registration or pay taxes in Canada. It just collects money from the Company in China that ships the products directly to Canada.

I don't know of any laws that would prevent that. Generally, shipping a product to a buyer in a particular country does not require a physical presence in that country.

I hope that this information is helpful. Please click on a smiley face so that I will be compensated for assisting you. If you have a follow up question please send me back a Reply without entering any rating. Also, be sure to verify this information with a local attorney who is familiar with your local laws and procedures. Thanks again for using Pearl.Com- Just Answer. Your business is appreciated.

 

Customer: replied 3 years ago.
Relist: Incomplete answer.
His 2nd answer contradicted his 1st answer
Sorry, but I went a little too far in my first Answer, trying to explain what "doing business" in Canada might mean technically. That is a more complicated question than your's, which was: Is it legal under Canadian law for a US corporation to hold blanket distribution rights in Canada...?
My Answer was: Yes it is. The contract is between the U.S.Corp. and the manufacturer, wherever it is located (China?). The distribution rights can be world wide.
I stand by that Answer. IT IS LEGAL. The problem with questions like yours asking, botXXXXX XXXXXne, "is such and such legal", without much in the way of specific details, the Answer is seldom what the person wishes to hear. You obviously have a problem with some U.S. company distributing something in Canada. This subject is covered by numerous trade treaties in thousands of pages of laws and agreements between nations. If you wish to know more about payment of GST or jurisdiction of Canadian Courts over U.S. Corporations, doing business in CA please post a new question with additional facts along those line.

I hope that this is satisfactory clarification of this Answer, and it will permit a positive rating, even though it might leave you in doubt about particular aspects of your problem. And again, thanks for choosing Just Answer for your questions.
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