Canada Economy Profile - Doing Business 2019
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Doing Business 2019 Canada
Economy Profile
Canada
Page 1
Doing Business 2019 Canada
Economy Profile of Canada
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Canada
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Canada
Ease of Doing Business in
Region OECD high income DB 2019 Rank
190 1
Canada
Income Category High income 22
DB 2019 Ease of doing business score
Population 36,708,083
0 100
City Covered Toronto 79.26
DB 2019 Ease of Doing Business Score
0 100
86.59: New Zealand (Rank: 1)
80.13: Australia (Rank: 18)
79.26: Canada (Rank: 22)
78.90: Germany (Rank: 24)
77.80: Regional Average (OECD high income)
77.29: France (Rank: 32)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Canada
3
1 12 11 13
19
28 34
50
55 63
82
Rank
96
109 121
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Canada
98.23
100
88.05 88.36
85.00
79.31 81.46
78.33
80 72.98
63.78
57.13
Score
60
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Canada
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Canada
Starting a Business - Canada
Standardized Company
Legal form Private Corporation
Paid-in minimum capital requirement CAD 0
City Covered Toronto
Indicator Canada OECD high Best Regulatory
income Performance
Procedure – Men (number) 2 4.9 1 (New Zealand)
Time – Men (days) 1.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 0.3 3.1 0.0 (Slovenia)
Procedure – Women (number) 2 4.9 1 (New Zealand)
Time – Women (days) 1.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 0.3 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Canada and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
99.98: New Zealand (Rank: 1)
98.23: Canada (Rank: 3)
96.47: Australia (Rank: 7)
93.27: France (Rank: 30)
91.19: Regional Average (OECD high income)
83.58: Germany (Rank: 114)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Canada
Figure – Starting a Business in Canada – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.4
1.4
0.35
Cost (% of income per capita)
1.2
0.3
1
Time (days)
0.25
0.8
0.2
0.6
0.15
0.4 0.1
0.2 0.05
0 0
1 2
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Canada
Details – Starting a Business in Canada – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 File for federal incorporation and provincial registration via the online 1 day CAD 200
Electronic Filing Centre
Agency : Innovation, Science and Economic Development Canada
To file for incorporation electronically (via Online Filing Centre), the cost is CAD
200. There is no fee for the provincial registration in Ontario. Electronic filing for
incorporating a business is 1 day and the Business Number is sent to the
company within 5 days.
The following documents are required to file for federal incorporation and
provincial registration:
1. Form 1: Articles of Incorporation
2. Form 2: Initial Registered Office Address and First Board of Directors
3. Provincial registration form.
While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova
Scotia and Saskatchewan can be done at the same time when the documents for
federal incorporation are filed (via Joint Online Registration System), generally, a
federal company that intends to conduct business in other Canadian province
would need to register in that province individually. See, for example, Part 11 of
the Business Corporations Act (British Columbia).
Four incorporation options available:
1. Incorporation of a numbered name corporation, e.g. 1234567 Canada Inc.
If the company is incorporating under a name, rather than a number, a name
search report must be obtained at a cost of CAD 13.8. The search report and
articles must be filed within 90 days of the production of the name search report.
2. Incorporation of a corporation with a name pre-approved by Corporations
Canada (a NUANS® search in electronic format is required to accompany the
submission) or
3. Incorporation of a corporation where name approval is to be sought (a
NUANS® search in electronic format is required to accompany the submission);
4. Incorporation of a numbered name corporation that has been pre-reserved.
It is a same day service, if you submit the forms online prior to 1PM, the
incorporation certificate should be provided on the same day by 5PM.
Once a corporation is created, the corporation's information is transmitted to the
Canada Revenue Agency which then transmits back the Business Number with
the corporate income tax account number. This number can be accessed within
a day from the online database of federal corporations on Industry Canada's
website.
2 Register for VAT less than one day no charge
Agency : Canada Revenue Agency (online procedure)
All private corporations with turnover of over 30,000 CAD of taxable supplies per
quarter must register for the VAT –referred to as Goods and Services Tax
(GST)/Harmonized Sales Tax (HST) – with Canada Revenue Agency (CRA). In
order to register with CRA, corporations must provide the Name, phone number,
and the Social Insurance Number (SIN) of at least one owner/director of the
business and the Business Address and Major Business Activity (MBA) when
registering. Registration can be done online at http://www.cra-arc.gc.ca/menu-
eng.html - at no cost.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Canada
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Canada
Dealing with Construction Permits - Canada
Standardized Warehouse
Estimated value of warehouse CAD 2,882,527.50
City Covered Toronto
Indicator Canada OECD high Best Regulatory
income Performance
Procedures (number) 12 12.7 None in 2017/18
Time (days) 249 153.1 None in 2017/18
Cost (% of warehouse value) 1.8 1.5 None in 2017/18
Building quality control index (0-15) 14.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Canada and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.40: New Zealand (Rank: 6)
84.59: Australia (Rank: 9)
79.30: France (Rank: 19)
78.16: Germany (Rank: 24)
75.41: Regional Average (OECD high income)
72.98: Canada (Rank: 63)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
1.2
1
Cost (% of warehouse value)
200
0.8
Time (days)
150
0.6
100
0.4
50
0.2
0 0
1 *2 3 4 5 6 7 8 9 10 11 12
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Canada
Figure – Dealing with Construction Permits in Canada and comparator economies – Measure of Quality
15.0
15 14.0 14.0 14.0
11.5
Index score 9.5
10
5
0
Canada Australia France Germany New Zealand OECD high income
Details – Dealing with Construction Permits in Canada – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Undergo preliminary project review with the Municipal Authority 30 days CAD 547
Agency : Toronto Municipal Authority
The Preliminary Project Review is a review of a proposal to determine its
compliance with the city’s zoning bylaw.
2 Apply and obtain a zoning certificate 30 days CAD 3,716
Agency : Chief Building Controller
Under Chapter 363-3.1 of the Toronto Municipal Code, a zoning certificate is
mandatory prior to requesting a building permit. The zoning certificate costs 25%
of the total prescribed building permit fee. Once the application has been
received and payment is made, the application will be circulated to city divisions
and external agencies for detailed technical review and comments.
Within 30 days of payment of the application fee, a written notice will be provided
to the applicant with regards to the completeness or incompleteness of the
application, and the applicant will be assigned a STAR stream and application file
number.
3 Obtain site plan approval from the Municipal Authority 180 days CAD 29,878
Agency : Toronto Municipal Authority
A pre-consultation with City Staff (Planning Department) is advised. This step will
help save time later on in the process. Several documents are needed in this
application, including Site Plans, Floor Plans, Elevations, and SWM Plan
Site Plan Control is legislated under Section 41 the Ontario Planning Act and
allows the City to review and control important aspects of a proposed project, for
example, the site of buildings, landscaping, pedestrian access, parking, exterior
design and appearance, storm water management and waste disposal.
The municipality forwards the site plan to the fire department for approval. On
some occasions, a City councilor will get involved in the review of the site plan
and community consultation may be requested by the planner. The process can
take anywhere from 3 month to 9 months depending on the complexity of the site
plan, political interests, and on how often the applicant needs to revise the plan
to meet the City's desired revisions. Once approved, the City often has conditions
that need to be met before building permit can be obtained.
4 Obtain building permit 15 days CAD 11,149
Agency : Toronto Municipal Authority
The building permit is issued by the City of Toronto. BuildCo must post the
building permit on the construction site. In certain cases, the process of reviewing
the building permit application can be started by the City before the site plan is
approved. The City can issue a temporary building permit at that time. However,
the final building permit cannot be issued before the site approval is granted. The
building permit and the site plan approval are granted by different municipal
departments. The site plan approval entails verifying planning compliance with
the city bylaws (for instance, if enough parking spaces are included in the plans).
In contrast, the building permit application review analyzes technical issues.
The Ontario Building Code requires that on top of including all design plans and
plot information, one must include a form ensuring energy efficiency, completed
by the architect, mechanical designer, and electrical designer.
This price includes the cost of the application intake, review, and inspection
activities.
5 Request and receive foundation work inspection 1 day no charge
Agency : Toronto Municipal Authority
Building inspectors review projects during key stages of construction to ensure
that work complies with the building code and approved plans. Inspectors may
visit several times, depending on the project; they must be able to see the part of
the work under inspection. Inspectors require a minimum of 48 hours notice to
book an inspection.
Page 11Doing Business 2019 Canada
6 Request and receive frame inspection 1 day no charge
Agency : Toronto Municipal Authority
To conduct a frame inspection, building inspectors review projects during key
stages of construction. This is required to ensure that the work complies with the
building code and approved plans. Inspectors may visit several times, depending
on the project; they must be able to see the part of the work under inspection.
Inspectors require a minimum of 48 hours notice to book an inspection.
7 Request and receive drainage inspection 1 day no charge
Agency : Toronto Municipal Authority
Building inspectors review projects during key stages of construction. This is
required to ensure that work complies with the building code and approved plans.
Inspectors may visit several times, depending on the project; they must be able
to see the part of the work under inspection. Inspectors require a minimum of 48
hours notice to book an inspection. Inspection is done upon completion, before
back filling and ready for testing.
8 Request and receive sanitary inspection 1 day no charge
Agency : Toronto Municipal Authority
Building inspectors review projects during key stages of construction. This is
required to ensure that work complies with the building code and approved plans.
Inspectors may visit several times, depending on the project; they must be able
to see the part of the work under inspection. Inspectors require a minimum of 48
hours notice to book an inspection. Inspection is done upon completion, before
back filling and ready for testing.
9 Request and receive plumbing inspection 1 day no charge
Agency : Toronto Municipal Authority
Building inspectors review projects during key stages of construction. This is
required to ensure that work complies with the building code and approved plans.
Inspectors may visit several times, depending on the project; they must be able
to see the part of the work under inspection. Inspectors require a minimum of 48
hours notice to book an inspection. Inspection is done upon completion, before
back filling and ready for testing.
10 Obtain water and sewer service connections 14 days CAD 7,500
Agency : Toronto Water: Water Renewal Division
This procedure can only be completed after the site plan approval has been
granted. The City has implemented a process in 2008 by which the connection
work is carried out by any one of 8 listed contractors. Once the application has
been submitted, the City sends out a Request for Quotations (RFQ) from the
contractors. The desired contractor is chosen based on the list of quotes and a
deposit is collected.
Toronto Water estimates the costs by tendering the job to a roster of approved
City of Toronto contractors. The costs are later communicated to the applicant,
who is required to pay all fees in advance of construction. Once the work is
complete, the actual costs will be determined.
11 Request and receive fire department inspection 3 days no charge
Agency : Fire Department, Toronto Municipal Authority
The fire department inspector conducts this inspection.
12 Receive final inspection and occupancy permit 1 day no charge
Agency : Toronto Municipal Authority
The building inspector conducts the final inspection.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2019 Canada
Details – Dealing with Construction Permits in Canada – Measure of Quality
Answer Score
Building quality control index (0-15) 14.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible Architect or 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance engineer;
or Decennial Insurance)? (0-1) Construction
company; Owner
or investor;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 13Doing Business 2019 Canada
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 14Doing Business 2019 Canada
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Canada
Getting Electricity - Canada
Standardized Connection
Price of electricity (US cents per kWh) 13.3
Name of utility Toronto Hydro
City Covered Toronto
Indicator Canada OECD high Best Regulatory
income Performance
Procedures (number) 7 4.5 3 (25 Economies)
Time (days) 137 77.2 18 (3 Economies)
Cost (% of income per capita) 119.8 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 6 7.5 8.0 (27 Economies)
Figure – Getting Electricity in Canada and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
98.79: Germany (Rank: 5)
92.01: France (Rank: 14)
85.47: Regional Average (OECD high income)
83.98: New Zealand (Rank: 45)
82.31: Australia (Rank: 52)
63.78: Canada (Rank: 121)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Canada
Figure – Getting Electricity in Canada – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
90
120 80
Cost (% of income per capita)
70
100
60
Time (days)
80
50
60 40
30
40
20
20
10
0 0
1 2 3 4 *5 *6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Canada and comparator economies – Measure of Quality
8 8
8 7.5
7 7
7
6
6
Index score
5
4
3
2
1
0
Canada Australia France Germany New Zealand OECD high income
Page 17Doing Business 2019 Canada
Details – Getting Electricity in Canada – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Toronto Hydro and await comments on proposal 15 calendar days CAD 1,400
Agency : Toronto Hydro
An application for an electrical connection can be submitted through a written
request by letter or email.
Required documents:
(1). Architectural, electrical, mechanical drawings (2). Survey plan and site plan
(3).Locations of other services, gas, telephone, water, cable (4) required in-
service date, proposed service entrance equipment, rated capacity and voltage
rating, metering requirements and proposed load.
At this point Toronto Hydro requests for a preliminary design deposit based on
($10,000 per MVA of load) which is put towards the cost of the job once it
proceeds.
2 Await completion and approval of project design 13 calendar days CAD 2,125
Agency : Contractor
The customer's electrical consultant prepares the design of service entrance
requirement. The electrical design has to be approved by the Electrical Safety
Authority. Usually the approval is obtained by the electrical consultant/hired
electrical design firm.
3 Submit final design to Toronto Hydro and await offer to connect 22 calendar days CAD 0
Agency : Toronto Hydro
The customer’s private consultants will provide Toronto Hydro with the final
design drawings and requirements. Toronto Hydro prepares an Offer to Connect,
which includes the connection charges and schedule of work. During this time
Toronto Hydro will check for feeder capacity, prepares the design scope and
cost, and present the customer with an offer to connect.
The OTC outlines the cost of the project and the responsibilities of each party.
After the Offer to Connect is issued, the applicant must sign and comply with all
the conditions in the OTC before any further work can be completed, which
includes payments.
An external inspection is performed by the utility to prepare the offer to connect
and the technical study. No one from the applicant's party is present during the
inspection. Toronto Hydro submits an Offer to Connect to the customer within 60
days of the request (all information required from the customer must be
submitted).
4 Await completion of external works by Toronto Hydro 80 calendar days CAD 44,363
Agency : Toronto Hydro
After the estimate has been issued a part of the external connection works are
carried out by Toronto Hydro. The works will most likely include the following: (a)
Extend the overhead primary feeder cables down the street by installing a new
pole line up to the point that is in line with the customer's building. (b) From an
overhead feeder install a primary riser switch and fusing at the pole. (c) Construct
underground ducts from the base of the pole up to the customer’s property line.
(d) Install underground primary cable from the riser switch to the padmounted
structure. (e) Install padmounted transformer. (f) Make primary and secondary
connection at padmounted transformer. The connection fees paid to Toronto
Hydro include: engineering design, labor, material, equipment, overhead costs
(including administration and inspection). The utility will obtain an excavation
permit for the part of the work which is their responsibility.
Toronto Hydro performs an economic evaluation on the "expansion" portion of
the connection and the forecasted revenue of connecting this customer. In this
case, the customer will have to provide a security deposit known as an
Expansion Deposit. This expansion deposit will be returned to the customer, if
the customer reaches its demand of 140 kVA within the first five years (i.e. after
each year a portion of the expansion deposit will be given back relative to the
demand realized). For the case study, the customer will receive the full amount
back after the first year of operation.
5 Await completion of external works by contractor 14 calendar days CAD 20,500
Agency : Contractor
While Toronto Hydro finishes its part of the connection works an electrical
contractor proceeds with his part of the works. The contractor's work includes: a)
Install padmounted structure on customer property. (b) Construct underground
ducts from padmounted structure to join ducts provided by Toronto Hydro at
property line and construct ducts underground from padmounted structure to
Customer building. (c) Install secondary cable from padmounted transformer to
building.
Page 18Doing Business 2019 Canada
6 Await and receive inspection of internal wiring 1 calendar day CAD 650
Agency : Electrical Safety Authority
An inspection of internal wiring is required and can be performed by the Electrical
Safety Authority at any time during rough in and final stages of the process so
there are at least two inspections of the internal wiring. The inspection would be
performed by the Electrical Safety Authority, who in turn would submit a "Turn On
Notice" to Toronto Hydro. This allows Toronto Hydro to provide the final
connection of power to the facility in question.
7 Await final inspection, meter installation and final connection 7 calendar days CAD 0
Agency : Toronto Hydro
Once Toronto Hydro receives the connection authorization, the final inspection is
performed during meter installation and the final connection can be made. There
is no separate supply contract to be signed. The supply contract is signed at the
same time as the connection contract in one contract.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Canada
Details – Getting Electricity in Canada – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 0.9
System average interruption frequency index (SAIFI) 1.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.torontohy
dro.com/sites/electric
system/business/you
rbilloverview/Pages/
ElectricityRates.aspx
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Canada
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Canada
Registering Property - Canada
Indicator Canada OECD high Best Regulatory
income Performance
Procedures (number) 5 4.7 1 (4 Economies)
Time (days) 4 20.1 1 (New Zealand)
Cost (% of property value) 2.9 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 21.5 23.0 None in 2017/18
Figure – Registering Property in Canada and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
94.89: New Zealand (Rank: 1)
79.31: Canada (Rank: 34)
77.17: Regional Average (OECD high income)
74.09: Australia (Rank: 50)
65.70: Germany (Rank: 78)
63.33: France (Rank: 96)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Canada – Procedure, Time and Cost
Time (days) Cost (% of property value)
4 3.5
3.5 3
Cost (% of property value)
3
2.5
Time (days)
2.5
2
2
1.5
1.5
1
1
0.5 0.5
0 0
1 *2 *3 *4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Canada
Figure – Registering Property in Canada and comparator economies – Measure of Quality
30
26.5
25 24.0 23.0
21.5 22.0
Index score 20.0
20
15
10
5
0
Canada Australia France Germany New Zealand OECD high income
Details – Registering Property in Canada – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain tax clearance certificate from the Municipality 2 days CAD 67.3
Agency : Municipality
The parties have to show reasonable evidence to the title insurance company
that the property is clear of tax obligations. A written tax clearance certificate
should be obtained from the Municipality in 2 days for CAD 67,30. Since
February 2016, this procedure can be completed online, and the petitioner will
receive the certificate by email after two business days. The certificate will need
to show the latest tax receipts including the amount of current year taxes and
whether all taxes are paid to date. Verbal confirmation that realty taxes have
been paid will also suffice. In order to confirm verbally that the realty taxes have
been paid, a Tax Certificate must be requested and paid for, and in most cases,
it commonly takes more than 1 business day to process. Realty Taxes are
required to be paid up to the date of the transfer of the property.
2 Obtain a copy of Title Register and relevant registered documents and a Less than one day, CAD 47.13; (CAD
Certificate regarding Writs of Execution online 32.07 (Title Register)
Agency : Land registry + CAD 15.06 (Writs of
A copy of Title Register and relevant registered documents are obtained online,
Execution))
as the Certificate regarding Writs of Execution filed against the vendor.
3 Obtain Status Certificate with respect to selling corporation 1 day CAD 86
Agency : Provincial government
Seller obtains a Status Certificate from the government of province (and the
federal government, if applicable).
4 Conduct title search 2 days CAD 2,000
Agency : Teraview
Depending on whether the property is located in a jurisdiction governed by the
Land Titles Act or the Registry Act or by electronic registration, in the absence of
title insurance, a simple title search will cost CAD 2,000, and more difficult
searches can cost CAD 10,000 or more. In terms of additional investigations: (a)
an environmental report would costs between CAD 1,500 to CAD 3,000; (b) a
building inspection would take 10 to 21 days and would cost CAD 2,500 to CAD
10,000; and (c) a zoning review by a planning consultant would take between 1
day and 14 days and would cost between CAD 2,000 and CAD 10,000. Title
insurance can be obtained for CAD 0.75/CAD 1000 of the purchase price if the
purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of the
purchase price if the purchase price is less than CAD 2,000,000.
Page 23Doing Business 2019 Canada
5 Registration of the transfer of title Less than one day, CAD 82,825.54;
Agency : Purchaser's solicitor or Land registry online (CAD 74.72
After the agreement has been prepared and the transaction closed, the parties’
(electronic
solicitors will complete the registration for transfer of title. Electronic registration
registration fee) +
governs more than 90% of properties in Toronto. In the electronic registration
Provincial Land
regime, the transfer is registered electronically by an authorized licensee at the
offices of the purchaser’s solicitor. The registration takes approximately 30 Transfer Tax +
minutes, and the cost of electronic registration is CAD 74.72, for each document, Municipal Land
including tax and service fees. Only authorized licensees have access to the Transfer Tax + CAD
electronic registration system for security reasons. The purchaser is responsible 75 (Municipal
for the cost of registering the transfer. The payment of registration fee and the administrative fee
Land Transfer Tax is done electronically too if it is in the electronic regime. effective on April 1.
Solicitor’s fees for their representation in the whole process are estimated at
2016)
CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s
solicitor). Notification of change of ownership to assessment department and
utility companies can be done the same day immediately after closing but should Provincial Land
be arranged before closing to ensure continuity of services. Transfer Tax is
calculated through a
progressive scale:
For a property value
under CAD 55,000,
the fee is 0.5%
From CAD 55,001 to
CAD 250,000, the fee
is 1%
Over CAD 250,000,
the fee is 1.5%.
Municipal Land
Transfer Tax for the
City of Toronto is
calculated through
the following scheme
(plus an
administration fee of
CAD 75 effective on
April 1. 2016):
For a property value
up to and including
CAD 55,000.00, the
MLTT Rate is 0.5%
From CAD 55,000.01
to CAD 400,000.00,
the MLTT Rate is 1%
From CAD
400,000.01 to CAD
40,000,000.00, the
MLTT Rate is 1.5%
Over CAD
40,000,000.00, the
MLTT Rate is 1%.)
Takes place simultaneously with previous procedure.
Page 24Doing Business 2019 Canada
Details – Registering Property in Canada – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 7.0
What is the institution in charge of immovable property registration? Toronto Land
Registry Office
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Toronto Land
Registry Office
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 3.0
Who is able to obtain information on land ownership at the agency in charge of immovable Freely accessible 1.0
property registration in the largest business city? by anyone
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: https://www.teran
etexpress.ca/csp/
welcome.htm
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: https://www.toron
to.ca/services-
payments/propert
y-taxes-
utilities/property-
tax/property-tax-
rates-and-fees/
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5
by anyone
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5
and if so, how?
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