Doing Business 2018 Canada
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Doing Business 2018 Canada
Economy Profile of Canada
Doing Business 2018 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, 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 and total tax 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 2018 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 distance to frontier 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.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Canada
Ease of Doing Business in DB 2018 Rank
Region OECD high income
190 1
Canada
Income Category High income 18
DB 2018 Distance to Frontier (DTF)
Population 36,286,425
0 100
City Covered Toronto 79.29
DB 2018 Distance to Frontier (DTF)
0 100
86.55: New Zealand (Rank: 1)
80.14: Australia (Rank: 14)
79.29: Canada (Rank: 18)
79.00: Germany (Rank: 20)
77.46: Regional Average (OECD high income)
76.13: France (Rank: 31)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Canada
2
1 12 8 11
16
28 33
46
54
55
82
Rank
105
109 114
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
Distance to Frontier (DTF) on Doing Business topics - Canada
98.23
100
88.05 88.36
85.00
79.31 81.46
78.33
80
72.87
66.89
60
DTF
54.35
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 2018 Canada
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in 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 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 distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. 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) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 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 Overall Best Performer
income
Procedure – Men (number) 2 4.9 1.00 (New Zealand)
Time – Men (days) 1.5 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 0.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 2 4.9 1.00 (New Zealand)
Time – Women (days) 1.5 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 0.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 8.7 0.00 (113 Economies)
Figure – Starting a Business in Canada and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
99.96: New Zealand (Rank: 1)
98.23: Canada (Rank: 2)
96.47: Australia (Rank: 7)
93.28: France (Rank: 25)
91.35: Regional Average (OECD high income)
83.46: Germany (Rank: 113)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 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 2018 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 2018 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 June 2017. 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.
â—
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
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
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
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- 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)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) 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
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- 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 2018 Canada
Dealing with Construction Permits - Canada
Standardized Company
Estimated value of warehouse CAD 2,755,121.80
City Covered Toronto
Indicator Canada OECD high Overall Best Performer
income
Procedures (number) 12 12.5 7.00 (Denmark)
Time (days) 249 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 1.9 1.6 0.10 (5 Economies)
Building quality control index (0-15) 14.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Canada and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.36: New Zealand (Rank: 3)
84.39: Australia (Rank: 6)
79.29: France (Rank: 18)
78.16: Germany (Rank: 24)
75.14: Regional Average (OECD high income)
72.87: Canada (Rank: 54)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1.2
Cost (% of income per capita)
1
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 2018 Canada
Figure – Dealing with Construction Permits in Canada and comparator economies – Measure of Quality
15.0
15 14.0 14.0 14.0
11.4
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 Building 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 in 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 2018 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.
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 2018 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 2018 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 2018 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 June 2017. 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) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 Canada
Getting Electricity - Canada
Standardized Company
Price of electricity (US cents per kWh) 14.2
Name of utility Toronto Hydro
City Covered Toronto
Indicator Canada OECD high Overall Best Performer
income
Procedures (number) 7 4.7 2 (United Arab Emirates)
Time (days) 137 79.1 10 (United Arab Emirates)
Cost (% of income per capita) 125.3 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff index (0-8) 7 7.4 8.00 (28 Economies)
Figure – Getting Electricity in Canada and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
98.79: Germany (Rank: 5)
85.89: France (Rank: 26)
84.44: Regional Average (OECD high income)
83.97: New Zealand (Rank: 37)
82.31: Australia (Rank: 47)
66.89: Canada (Rank: 105)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 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 7.4
7 7 7
7
6
Index score
5
4
3
2
1
0
Canada Australia France Germany New Zealand OECD high income
Page 17Doing Business 2018 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 2018 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 2018 Canada
Details – Getting Electricity in Canada – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 1.0
System average interruption frequency index (SAIFI) 1.4
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) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
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 2018 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 June 2017.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.
â—
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).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
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.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 21Doing Business 2018 Canada
Registering Property - Canada
Standardized Company
Property value CAD 2,755,121.80
City Covered Toronto
Indicator Canada OECD high Overall Best Performer
income
Procedures (number) 5 4.6 1.00 (4 Economies)
Time (days) 4 22.3 1.00 (3 Economies)
Cost (% of property value) 2.9 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 21.5 22.7 29.00 (Singapore)
Figure – Registering Property in Canada and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
94.47: New Zealand (Rank: 1)
79.31: Canada (Rank: 33)
76.81: Regional Average (OECD high income)
74.17: Australia (Rank: 51)
65.71: Germany (Rank: 77)
60.69: France (Rank: 100)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Canada – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4 3.5
3.5 3 Cost (% of income per capita)
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 2018 Canada
Figure – Registering Property in Canada and comparator economies – Measure of Quality
30
26.0
25 24.0
22.0 22.7
21.5
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 65
Agency : Municipality (simultaneous with
The parties have to show reasonable evidence to the title insurance company that the Procedures 1, 3, 4,
property is clear of tax obligations. A written tax clearance certificate should be obtained and 5)
from the Municipality in 2 days for CAD 65. 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 a day CAD 32.07 (Title
Certificate regarding Writs of Execution (online procedure), Register) + CAD
Agency : Land registry simultaneous with 15.06 (Writs of
A copy of Title Register and relevant registered documents are obtained on-line, as are procedures 1, 2, 4, Execution)
the Certificate regarding Writs of Execution filed against the vendor.
and 5
3 Obtain Status Certificate with respect to selling corporation 1 day (simultaneous CAD 86
Agency : Provincial government with Procedures 1,
Seller obtains a Status Certificate from the government of province (and the federal 2, 3, and 5)
government, if applicable).
4 Conduct title search (in the absence of title insurance) 1-3 days CAD 2,000
Agency : Teraview (simultaneous with
Depending on whether the property is located in a jurisdiction governed by the Land Procedures 1, 2, 3,
Titles Act or the Registry Act or by electronic registration, in the absence of title and 4)
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
purchase price if the purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD
1000 of purchase price if the purchase price is less than CAD 2,000,000.
Page 23Doing Business 2018 Canada
5 Registration of the transfer of title Less than a day CAD 74.72
Agency : Purchaser's solicitor or Land registry (online procedure) (electronic
After the agreement has been prepared and the transaction closed, the parties’ solicitors registration fee) +
will complete the registration for transfer of title. More than 90% of properties in Toronto Provincial Land
are governed by electronic registration. In the electronic registration regime, the transfer
Transfer Tax +
is registered electronically by an authorized licensee at the offices of the purchaser’s
Municipal Land
solicitor. The registration takes approximately 30 minutes and the cost of electronic
Transfer Tax + CAD
registration is CAD 74.72, for each document, including tax and service fees. Only
authorized licensees have access to the electronic registration system for security reasons. 75 (Municipal
The purchaser is responsible for the cost of registering the transfer. The payment of administrative fee)
registration fee and the Land Transfer Tax is done electronically too if it is in the
electronic regime. Solicitor’s fees for their representation in the whole process are Provincial Land
estimated in about CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for Transfer Tax is
the seller’s solicitor). Notification of change of ownership to assessment department and calculated through a
utility companies can be done the same day immediately after closing, but should be progressive scale:
arranged prior to closing to ensure continuity of services. 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.
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