Canada is one of the most powerful countries in the world in terms of energy. Ranked as the second largest uranium and the third largest hydroelectricity producer in the world, Canada has imposed itself through accessibility to all types of energy sources.
Opening a company in the energy sector in Canada is possible if the investors comply with the legislation imposed by the government. Below, our Canadian company formation agents explain the main regulations related to starting an energy business here.
Laws applicable in the energy industry in Canada
Apart from the Company Law, which covers the aspect of company registration in Canada, investors must comply with the following laws in order to open an energy business in this country:
- the Oil and Gas Operations Law which provides for companies extracting oil and gas;
- the Petroleum Resources Law which provides for petroleum companies in Canada;
- the Cooperative Energy Law which provides for companies in the electric energy sector;
- the Nuclear Energy Law – Canada is among the top nuclear energy producers in the world;
- the Forestry Law – Canada has one of the largest forest masses in the world used for creating biofuels.
Foreign entrepreneurs must also comply with the Ownership and Determination Control Law which provides for certain restrictions related to foreign ownership in the energy sector.
Registering a company in the energy sector in Canada
The first phase of opening an energy company in Canada consists of registering the business activity with the federal or provincial Trade Register.
Then, the company must register with the National Energy Board of Canada. It must also be noted that, in order to offer energy services in Canada, a company must register with the government in the province it will operate. The federal government only regulates international and inter-territorial energy commerce.
Types of energy companies in Canada
Apart from conventional energy services, Canadian companies can also offer:
- energy services derived from the installation of solar panels – solar power;
- energy services derived from the exploitation of biomass and coal;
- energy services derived from the exploitation of geothermal sources;
- energy services derived from the exploitation of windmills.
For assistance in registering an energy company in Canada, please contact our local consultants.