Gm 598 - Starting a Cable Business

EM Cable & Internet

Team Project

by

Marrel Davis & Elliott Stevens

8/22/2011

GM598

The product we will be offering will officially launch on April 1, 2012 which is EM Cable services to the Toronto, Ontario region of Canada. We will be offering the fastest internet speeds, the most high definition and 3D TV, and we will be the only service provider to offer the most On Demand service in the region. This will allow our customers to select from a library of shows and movies whatever they want to watch when they want to watch it. Our service will be available to Residential and Commercial customers. We will be able to provide this service through our broadband optical cable plant. One of country's key factors that impact the business in a positive way is the government's acceptance of new business. Also the government's democratic structure affords the allowance of opportunity to new businesses. One of the country's negative factors that can impact the business will be licensing and permits. This can present an issue for our business seeing as how we will have to work with the state and the city to get proper documentation to dig or run aerial cable lines throughout the city. This opportunity is important for our company because we are a new company that is trying to bring something new and innovative to Toronto. It is also important because of the opportunity and potential jobs that will be created.

The city of Toronto is a Metropolitan city that has had a Municipal Government since 1954. The government of Canada, formally Her Majesty's Government is a system whereby the federation of Canada is administered by a common authority. Canada has a constitutional law which refers to the laws that govern their country. The Canadian crown is the core of the Kingdom's Westminster-style parliamentary democracy. There are judicial branches and power is delegated to governors who run each state. Toronto City Council consists of the Mayor and 44 City councilors. 22 of the members are members of Parliament that sit on the House of Commons in Ottawa, and the other 22 are members of Ontario's Provincial Parliament. These 22 members sit on the Legislative Assembly in Toronto Ontario's capital. Each member represents 55,000 people. Toronto selects new local government every 4 years. Each province in Canada has established a system of courts for the administration of justice. In addition, certain specialized federal courts exist to deal with income tax, intellectual property and other federal subjects. Since the provinces exercise jurisdiction over property and civil rights, most disputes are handled by the provincial court system. Toronto, Canada has a democratic style of government that is run by the people and their legal system is similar to the United States concerning business. These are just few of the political factors of Toronto (http://www.toronto.ca/demographics).

One of the benefits of starting a business in Canada is that all levels of government recognize the importance of new businesses feeling welcome to come to the city of Toronto to start a business. Canada is ranked number two overall for starting a business. Establishing a business in Toronto is a fairly inexpensive process that is regulated by provincial or federal government. Since our business will be based out of Toronto we will need to be registered provincially and determine what types of license, permits, or insurance we must obtain. All businesses are also required to register with the Canada Revenue Agency or CRA to receive a business number. This number allows the business to pay and claim sales tax, income taxes, and payroll taxes such as the Canadian Pension Plan. This is similar to the tax ID number that is required in the United States for a business to operate. It is also required in Toronto that a business registers with the Workplace Safety Insurance Board or WSIB within ten days of hiring their first full time or part time employee. The investment Canada Act is a set of legal criteria that all non-Canadians must meet prior to investing in Canada. In order to encourage, facilitate and monitor levels of foreign investment in Canada, the federal government enacted the Investment Canada Act or ICA. The ICA monitors the establishment of new businesses and acquisition of existing businesses by non-Canadians. These are the tax requirements of non-residents of Canada. "Non-residents of Canada are subject to taxation only on income from employment and business income earned in Canada, and on one-half of gains realized from the disposition of taxable Canadian property, such as real estate or shares in a Canadian private corporation. Canada's tax treaties and Ontario legislation reduce the extent to which non-resident persons are subject to Canadian and Ontario tax." Under almost all treaties profits earned by non-residents from carrying on a business in Canada and Ontario are not taxed unless they arise from "permanent establishment" of the non-resident in Canada. This will be a huge benefit for the start of our business. We will not be subject to certain taxes as non-residents. These are just a few of the legal factors that are involved with starting a business in Toronto Ontario Canada (http://www.toronto.ca/licensing/pdf/chpt313.pdf).

Canada has the ninth largest economy in the world and is considered one of the wealthiest nations on the planet. The majority of Canada's wealth comes from the service industry. The economy is dominated by people who work in this industry. 75% of all employees in Canada work in the service industry. Other successful industries in Canada include oil and logging. The automobile industry also is important in Canada's economy which is in the central sector of Canada. Canada is also viewed to have one of the highest levels of economic freedom in the world. Canada's unemployment rate has stayed at 7.2%. According to Forbes 2000 list of world's largest companies, in 2008 Canada had 69 companies on the list ranking 5th overall behind France. Canada is a member of G8 which is a forum of eight countries created by France in 1975 for the 8 major government economies. These countries consist of France, Germany, Italy, Japan, United Kingdom, United States, Russia, and Canada. Canada's government debt is the lowest in G8. International trade of Canada's natural resources also makes up a large percentage of its economy. In 2009, agricultural, energy, forestry and mining exports