Establish a Business on Energy and A/C Supply in Canada

Updated on Tuesday 15th January 2019

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The energy industry is one of the most important economic sectors in Canada, however, not all companies here operate as electricity producers. There are other types of businesses which can be set up in this sector, among them being also companies which supply energy and air conditioning services.

These companies are also required to comply with the same laws imposed on energy producers in Canada.

If you are planning on setting up a business for the supply of energy and air conditioning, there are a few requirements you must comply with. These requirements can be detailed by our Canadian company formation agents.

Regulations imposed on energy suppliers in Canada

In order to become an energy-supplying company in Canada, a local or foreign investor must respect a few regulations imposed by several national agencies. These are:
  •           the regulations imposed by the National Energy Board which provides for the supply of energy at national level;
  •           the Nuclear Safety Commission which provides the regulations related to operating nuclear-based energy facilities;
  •           the Natural Resources Department within the Canadian government which provides for energy efficiency;
  •           the energy commissions of each province which provide for particular requirements for energy companies.

It is very important to determine the regulations imposed by local government in the Canadian province the energy and air conditioning supply company will operate.

Air conditioning supply regulations in Canada

Even if most of the regulations imposed on energy companies apply to air conditioning supply businesses, there are specific norms which need to be respected by the latter. The Natural Resources Department establishes several efficiency regulations imposed on the use of various types of air conditioning equipment.

Under the Energy Efficiency Law and Energy Efficiency Regulations, the following types of heating and air conditioning apparel can be used in Canada:
  •           electric and gas-based boilers, fireplaces, burners, and furnaces;
  •           large air conditioning, condensing units, and heat pumps can be used for commercial buildings;
  •           packaged air conditioning and heat pumps can be used together;
  •           room air conditioning units can be installed in apartments and houses;
  •           single-package air conditioning units are also available under the Canadian laws;
  •           air conditioning units which use split central systems can also be employed;
  •           vertical air conditioning units can also be used in commercial and residential buildings.

The equipment installed by energy and air conditioning businesses in Canada must comply with certain safety requirements.

How to register a Canadian business for the supply of energy and A/C

As mentioned earlier, the requirements related to the supply of energy and air conditioning services depend on the Canadian province the company will operate in. Similar requisites are applicable when setting up the business form employed for offering such services.

According to the Canadian Company Law, such a company can take the form of a corporation, partnership or sole proprietorship depending on how large the business is.

The paperwork which needs to be prepared for opening a company for the supply of energy and air conditioning is made of an application form issued by the Trade Register and the business’ Articles of Association.

Once the company is registered, it must obtain the necessary licenses to start operating. These are issued by the local energy board or utilities commission in the respective province. We can assist with the company registration procedure for your business on energy and air conditioning supply in Canada.

Other requirements for a Canadian energy and air conditioning business

Once the company is registered, the business owner is required to obtain the licenses to operate as an energy supplier or HVAC company and to sign an agreement with one of the acknowledged electricity-producing companies in Canada in order to become suppliers.

The energy and A/C supply business must also comply with the safety and environmental regulations by installing certified equipment only.

Establishing a company for the supply of energy and air conditioning services is not complicated, as long as the business owner will respect all the legal requirements in this sense. It is useful to know that such a business can be fully owned by a foreign investor compared to energy producing companies in Canada.

For complete information about the requisites related to establishing a business on energy and air conditioning supply in Canada, do not hesitate to contact us. We offer full company formation services to those interested in setting up a business in Canada.