Canada–US · Cross-Border Corporate Counsel

Canada–US — one engagement, both sides of the border.

For Ontario companies with a US parent, subsidiary, investor, co-founder or customer — and for US companies setting up, hiring, raising or buying in Canada. Canadian counsel, with the US-law work delivered through the firm’s US alliance.

Canadian sideFauri Law, Toronto · since 2020
US lawThrough the firm’s US alliance
EngagementOne firm · one engagement letter
Track recordDelaware & Canada–US structuring since 2020
PracticeCorporate & commercial
Situations We See

The matters that arrive from both sides of the border.

The two systems look alike and are not. Most of these start with a document drafted for the other country, and the firm reads it against the one it is actually going to operate in.

Structure

You have, or are being asked for, a US parent

An Ontario company with a Delaware parent or subsidiary, or a US investor asking you to put one in place before they invest. Whether a US entity is needed at all, what sits where, and how the two companies own, license and pay each other — decided before anything is incorporated or flipped.

Cross-border structure···
Delaware entity · parent or subsidiary
Ontario company
Ownership, IP & intercompany terms
Entering Canada

A US company setting up in Canada

A Canadian subsidiary to hire, sell or hold assets here — or, where a subsidiary is not wanted, the licence a US company needs to carry on business in Ontario directly. Ontario or federal incorporation, the registrations, the notification that comes with foreign ownership, and a minute book that a Canadian bank, landlord or buyer will accept.

Canadian subsidiary···
Ontario or federal · chosen on purpose
Subsidiary, or extra-provincial licence
Investment Canada notification
Co-founders

A co-founder on the other side of the border

One founder in Toronto, one in Austin or New York. Where to incorporate, who holds what, vesting, and an IP assignment that works in both countries — settled in a founders’ agreement before the first investor asks to see one.

Founders’ agreement···
Where to incorporate · and why
Vesting & IP assignment · both countries
Roles, decisions & exit
Raising capital

You’re raising from US investors

A SAFE, a note or a priced round with US angels or a US fund in it. The company side is Ontario law, including Ontario’s rules for selling securities to investors outside Canada; the investor’s own securities questions are US law and come through the alliance. Both inside one engagement.

Transaction

A US buyer, or a US target

Selling an Ontario company to a US acquirer, or buying in the United States. The Canadian side of the deal — diligence, the purchase agreement, approvals, the filings that come with a non-Canadian buyer — with the US side handled through the alliance rather than by a second firm you have to manage.

Commercial contracts

You’re contracting across the border

Master services, SaaS, supply, distribution and licensing agreements with US customers, suppliers or partners. Governing law, forum, currency, limitation of liability and what happens on default — chosen on purpose, because a clause that holds in Ontario may not hold in Texas, and the reverse.

People

You’re hiring on the other side

A US company hiring its first Canadian employee, or an Ontario company hiring in the United States. Canadian hires need Canadian-law terms: there is no at-will employment in Ontario, most non-competes are unenforceable here, and a US-form offer letter fails at the moment it matters. US hires go the other way, through the alliance.

Intellectual property

The IP has to sit in the right company

Assignments from founders, employees and contractors into the entity that will raise or be sold; licences between a parent and its subsidiary; and the Canadian rules that differ from the American ones — a contractor’s work product stays the contractor’s here unless assigned, and moral rights must be waived, not assigned.

When it goes wrong

Something has changed

A US shareholder, partner or counterparty acting without you; a document you were pressed to sign; a subsidiary that has drifted from its parent. The firm advises on where you stand and the steps available short of litigation, and coordinates litigation counsel on either side of the border where a dispute needs it.

How It Is Handled

One law firm. The Canadian side directly, the US side through the alliance.

Fauri Law is Canadian counsel. Where a matter needs US law, the firm delivers it through an alliance with a US law firm, inside the same engagement, rather than sending you to find a second firm and reconcile the two yourself.

Why one engagement
The matter is not split
  • the Canadian and the US documents are read together and reconciled by one firm;
  • US law, where the matter needs it, comes through the firm’s US alliance on the firm’s instructions, disclosed in writing before any work begins;
  • nothing falls between two firms who each see half of it;
  • a small firm: you deal directly with the principal, supported by the team.
Two common-law systems
Alike enough to be dangerous
  • at-will employment does not exist in Ontario; a Canadian hire on a US-form offer letter is a termination problem waiting to happen;
  • most non-competes in Ontario employment agreements have been unenforceable since 2021;
  • a contractor’s work product stays the contractor’s in Canada unless it is assigned in writing;
  • an Ontario company has no director-residency rule; a federal one does.
It starts with a consultation.

A consultation to understand the situation, then a review of the documents and your position on both sides of the border, delivered in writing with the steps recommended. Scope is confirmed after intake and conflict review and set out in an engagement letter before any work begins — including whether any part of the matter needs US law, and how that part will be handled.

Discuss a Canada–US matter
PARTNER
LED
BOTH
SIDES
WRITTEN
REVIEW
SCOPED
FIRST
Written for
+Ontario companies with a US parent, subsidiary, investor or customer
+US companies setting up, hiring or buying in Canada
+Founders with a co-founder across the border
+US counsel with a Canadian piece of a matter

Fauri Law’s lawyers are licensed in Ontario, and the firm is also licensed in the UAE. They are not licensed in any US state and do not practise US law; US-law work is performed by the firm’s US alliance firm. The firm does not litigate and does not practise immigration or tax law. Where a matter needs them, the firm brings them in and coordinates. Canadian and US tax advice comes from your accountants, with whom the firm works directly.

Track Record

The work this page describes, as it has actually been done.

The firm’s own cross-border mandates since 2020, and one recent matter described without identifying detail.

Since 2020

Cross-border transactions, on the Canadian side

Since 2020 the firm has advised founders, investors and companies on multi-party corporate and financing transactions across Canada and the United States — CAD $12M+ in equity financings across multiple transactions, $9M+ in convertible notes and SAFEs, and a $7M+ capital reorganisation with a multi-class share redesign across ten shareholders — including Delaware and Canada–US structuring, alongside the principal’s senior-counsel roles on a Canadian public-company merger and government-scale infrastructure programs.

Track record · since 2020···
Equity financings · CAD $12M+
Convertible notes & SAFEs · $9M+
Delaware & Canada–US structuring
Recent matter

Three companies, two of them in the United States

A Canadian-led business operating through three companies, two of them in the United States. The firm acted on the Canadian side and worked with US counsel so that the corporate documents of the three companies were reconciled with one another, rather than papered separately in each jurisdiction by lawyers who had never seen the other set.

Group · three companies···
Canadian side — Fauri Law
US side — with US counsel
One set of documents — reconciled
The firm

Canadian counsel, with the US side arranged

Fauri Law Professional Corporation, Toronto, since 2020. Fauri Law FZE, Abu Dhabi, licensed 2025. The principal, Khaled El Fauri, leads a small team and brings more than a decade as General Counsel inside industrial, financial and aerospace groups — the vantage point from which cross-border structures are judged, not just drafted.

Bar of Ontario GPLLM · U of Toronto LLM · Sussex Former General Counsel US law · via alliance
The US Alliance

US law inside the same engagement. Here is how that works.

Most Canada–US matters need both systems. Rather than sending you to a second firm, Fauri Law delivers the US-law work through an alliance with a US law firm — under one engagement letter, with one point of contact, on terms disclosed before any work begins.

Your engagement
You engage Fauri Law
  • one engagement letter, with Fauri Law, covering the whole matter;
  • one point of contact: the principal, in Toronto;
  • the firm advises on the Canadian law directly and identifies, with you, which parts of the matter need US law;
  • conflicts are checked in both firms before anything begins.
US law
Through the alliance firm
  • the US-law work is performed by the alliance firm’s US-licensed lawyers, on Fauri Law’s instructions;
  • it is billed through Fauri Law, on the basis set out in your engagement letter;
  • the Canadian and the US documents are reconciled by Fauri Law, so the two halves of the matter say the same thing;
  • Fauri Law’s lawyers do not give US legal advice themselves.
Disclosed in writing, before any work begins.

The arrangement, the alliance firm’s role and the basis on which its work is billed are set out in the engagement letter, so you know who is doing what, and on what terms, before the matter starts. Where a matter is better served by you engaging US counsel directly — US litigation, a US tax matter, a US immigration application — the firm says so and makes the introduction.

Discuss a Canada–US matter
ONE
ENGAGEMENT
US LAW
VIA ALLIANCE
DISCLOSED
IN WRITING
CONFLICTS
BOTH FIRMS
Outside the engagement
+US immigration — TN, L-1 and work permits go to immigration counsel
+US and Canadian tax — your accountants, coordinated by the firm
+Litigation in either country — litigation counsel, coordinated by the firm

The alliance is a working arrangement between two independent law firms. It is not a partnership, and neither firm is an office of the other. The US firm, and the terms on which its work is billed, are named in your engagement letter.

How It Runs

From the documents in your inbox to a position you can act on.

Submitting intake does not create a lawyer-client relationship. Work begins after conflict review, scope confirmation and written engagement terms.

Step 01 · 02

Send the documents

The agreement, the corporate documents on each side, and a paragraph on the situation — by email or through the intake. Fauri Law runs a conflict check, and so does the alliance firm where US law will be involved.

Step 03

Consultation & engagement

A consultation to confirm what you need and how the firm would approach it. An engagement letter sets the scope and the terms — and, where US law is needed, the alliance firm’s role and how it is billed — before any work begins.

Step 04

Review & memo

The documents are read against both systems — the Canadian side by the firm, the US side by the alliance firm where needed — and you receive one written memo: where you stand, what the documents actually do, and the steps recommended.

Step 05

Act on it, from one place

Structuring, drafting, negotiation, closing, or coordination with your accountants and other counsel — run from Toronto, with the US-law pieces delivered through the alliance and reconciled by the firm.

Where It Connects

Most cross-border matters lead somewhere.

The initial memo usually identifies the next step. These are the ones that follow most often — each scoped and engaged separately.

Structure

Put a US parent above an Ontario company — or decide not to.

The Canadian side of a Delaware parent, a US subsidiary or a reorganisation between the two, with your accountants leading the tax and the firm making the documents carry it.

View Governance & Structuring
Entering Canada

Set up the Canadian subsidiary.

Incorporation, registrations, the Investment Canada notification, a minute book and the intercompany agreements — handled as advisory work for a US parent.

View Advisory & Transactions
Raising capital

Raise from US investors.

Term sheet Venture financing

A SAFE or note with US investors on the Funding Kit where it fits, a priced round as advisory work — with the US securities questions delivered through the alliance.

View Venture Financing
Transaction

Buy or sell across the border.

LOI M&A

An acquisition or sale with a Canadian party on one side and a US party on the other, including the Canadian filings that come with a non-Canadian buyer.

View M&A
People & IP

Hire in Canada on Canadian terms.

First hire Build a Team Kit

Offer letters, contractor and advisor agreements with confidentiality, IP assignment and the restrictive covenants Ontario still allows — a fixed-fee kit for a company’s first Canadian hires.

View Build a Team Kit

Have questions?
Find answers.

Any more questions? Contact us Ready to begin? Discuss a Canada–US matter Referring a matter? Working with professional advisors
Are your lawyers licensed in the United States?

No. Fauri Law’s lawyers are licensed in Ontario, and the firm is also licensed in the UAE. The firm does not practise US law and does not give US legal advice. Where a Canada–US matter needs US law — a Delaware entity, a US investor’s securities questions, a US employment agreement, the US side of an acquisition — that work is performed by US-licensed lawyers at the firm’s alliance firm, on Fauri Law’s instructions and inside the same engagement. You get one firm to deal with and a matter that has been read on both sides.

How does the alliance work in practice?

You engage Fauri Law under one engagement letter. The letter identifies which parts of the matter, if any, need US law, names the alliance firm, and sets out the basis on which its work is billed — through Fauri Law, so you receive one account. Conflicts are checked in both firms before work begins. The firm advises on the Canadian law directly, instructs the alliance firm on the US pieces, and reconciles the two sets of documents so that they say the same thing. The alliance is a working arrangement between two independent law firms, not a partnership; if a matter would be better served by you engaging US counsel directly, the firm will say so.

Do we need a Delaware company? Our US investors keep asking.

Sometimes, and less often than founders are told. Many US funds will invest in a Canadian corporation directly; some will not, or will not lead. Putting a Delaware parent above an Ontario company — the “flip” — is a tax event before it is a corporate one, and it is costly to do and costly to undo. The right order is: find out whether the investor actually requires it, have your accountants model what it costs, and only then decide the structure. If a flip is the answer, the firm handles the Canadian side — the exchange, the approvals, the intercompany and IP agreements that follow — with the Delaware side through the alliance.

We are a US company setting up in Canada. Ontario or federal incorporation?

Usually Ontario, for a company whose directors are all in the United States. A federal corporation must have at least a quarter of its directors resident in Canada; an Ontario corporation has had no residency requirement since 2021, which removes the need to find a Canadian director or restructure the board. Either way the subsidiary needs its registrations, a registered office, a minute book and — because it is owned by a non-Canadian — a notification under the Investment Canada Act. Payroll, GST/HST and the provincial employer registrations are your accountant’s, and the firm coordinates them. A subsidiary can usually be in place within a week of instructions.

My co-founder is in the United States. Where do we incorporate?

It depends on where the company will operate, hire and raise, and on each founder’s tax position, which is a question for your accountants. What does not depend on any of that is the founders’ agreement: who holds what, vesting, roles, decisions, and an IP assignment from each founder into the company that works in both countries. Get that right first; the corporate structure can be adjusted later, but a founder dispute with no agreement cannot. For Ontario incorporation the firm’s Startup Kit covers the founders’ agreement and founder IP; the US-side questions come through the alliance.

We are raising from US investors. What changes?

Two sets of securities rules apply instead of one. On the company side, an Ontario company selling securities to a purchaser outside Canada relies on Ontario’s rules for distributions outside Canada, which have their own conditions and, in some cases, their own report. On the investor side, the sale has to comply with US federal and state securities law, which is the alliance firm’s work. The documents themselves — a SAFE, a note or a subscription agreement — are adapted so that they work under Ontario corporate law and satisfy what the US investor expects to see. A first SAFE or note with US investors can often run on the Funding Kit with the US piece added; a priced round is advisory work.

A US company wants to buy us. What does the Canadian side involve?

Diligence on the Ontario company, which is where most of the value is lost or kept; the purchase agreement and its Canadian-law provisions; shareholder and board approvals; the treatment of options and any SAFEs or notes outstanding; employment and IP matters that survive closing; and the Canadian filings that come with a non-Canadian buyer, including the Investment Canada notification and any competition filing the size of the deal requires. The buyer will have its own US counsel; the firm acts for you on the Canadian side and, through the alliance, on any US-law points that arise on your side of the table. Coming to the firm six months before a sale, rather than after the letter of intent, is the single best thing a seller can do. See Mergers & Acquisitions.

Which law should govern our contracts with US customers?

The one you can actually enforce under, chosen with the forum, the currency and the limitation of liability as a set rather than clause by clause. Ontario law with Ontario courts is often right for an Ontario company; a large US customer will often insist on its own state, and the question then is what that changes — on limitation of liability, on indemnities, on termination — and whether it is worth conceding for the contract. The firm drafts and negotiates the Canadian-law version and reads the US-law version with the alliance firm where the counterparty’s paper governs.

We want to hire in the other country. What should we know?

That the two systems differ most where employers assume they are the same. A Canadian hire needs Canadian-law terms: there is no at-will employment in Ontario, termination requires notice or pay in lieu unless the contract limits it properly, most non-competes in employment agreements have been unenforceable since 2021, and a US-form offer letter does none of this. Contractors are a separate question, with their own misclassification and IP-ownership risks. For a company’s first Canadian hires the Build a Team Kit covers offer letters, contractor and advisor agreements with the IP and confidentiality provisions built in. A Canadian company hiring in the United States gets the mirror image, through the alliance.

Can you help with visas or work permits?

No. The firm does not practise immigration law in either country. TN status, L-1 transfers, Canadian work permits and the rest go to immigration counsel, and the firm will point you to the right one. What the firm does handle is the corporate side those applications depend on — the entity, the intercompany agreements, the employment terms — so that the immigration file describes a structure that actually exists.

Who handles the tax?

Your accountants, on both sides of the border, and it is worth having both before the structure is decided. Residency, permanent establishment, withholding under the Canada–US tax treaty, transfer pricing between a parent and its subsidiary, and the tax cost of a flip are their questions. The firm’s role is to make sure the corporate documents and the tax reporting describe the same thing, and it works directly with your accountants to do that.

I am US counsel with a Canadian piece of a matter. How do I refer it?

Directly to the principal, by email or through the contact page, with a paragraph on the matter. You will hear back the same business day, and a conflict check runs before anything else. The firm takes the Ontario corporate and commercial piece and hands everything else back; it does not compete for your client’s US, tax, immigration or litigation work, and it does not pay or accept referral fees. See Working with professional advisors.

I’m in the United States, not Canada. Is this page for me?

Yes. The firm serves both directions equally. If you are in the United States — a company setting up or hiring in Canada, an investor with a Canadian portfolio company, a buyer looking at an Ontario target, or counsel with a Canadian piece to place — everything on this page applies to you from the other side. The firm works in Eastern time from Toronto, and the Toronto office page has the local details.

Do you handle disputes?

The firm does not litigate in either country. Where a shareholding, a venture or a contract with a US party has gone wrong, the firm advises on where you stand, the corporate and negotiated steps available, and — where a dispute needs it — coordinates with litigation counsel in the relevant jurisdiction, on either side of the border, so that the corporate advice and the litigation strategy are the same strategy.

One engagement, both sides of the border.

Send the documents and a paragraph on the situation. You will hear from the principal, not an intake queue, the same business day.