Canadian & International Business Requirements for Tricking

Hey everyone, 

Hopefully we can help to steer things in the right direction here. I know this type of education wasn't made readily available when many of us were on the come up as youth who found the sport online and developed naturally - but there's no excuse to ignore these things, and as we assume more responsibility ( particularly as business owners ) we have obligations to obtain the required education and apply it to our conduct, in order to comply with what society demands in order for our sport to be safe, fair & properly organized. 

I've come up with a summary that hits on the main topics with a small breakdown which functions as a check-list and I'd encourage anyone considering a career path in Tricking to use it as a starting point for research. These are all important areas and would protect you immensely from liability should things go wrong. We as ordinary citizens can't force compliance but we can control our own actions and so this information should be very helpful. 

Athletes acting in this way on a national level would be functioning as a sports association / governing body.

It is somewhat province-of-Ontario focused, so do keep in mind that rules in each province may vary.

Tricking & Business Ownership Requirements:
A sports business operating in Canada must satisfy corporate-registration, tax, employment, safety, privacy, human-rights, immigration, child-protection, insurance, and sport-governance requirements. The exact obligations depend on its province, structure, activities, and whether it operates for profit, recruits minors, hosts events, or brings foreign athletes into Canada.

1. Canadian business operating in sports
Corporate and business registration

The operator should:

• incorporate federally or provincially, or register the applicable sole proprietorship or partnership;
• register business names used publicly;
• maintain corporate records, directors, registered office, and beneficial-ownership information where required;
• obtain municipal business licences and event permits;
• register extra-provincially when operating outside its incorporating province; and
• maintain any required agent for service.

A corporation incorporated under Canadian federal or provincial law is generally a Class 1 or Class 2 corporation under Ontario’s Extra-Provincial Corporations Act, and may carry on business in Ontario without an Ontario extra-provincial licence, subject to other legislation and filing requirements. Extra-Provincial Corporations Act, RSO 1990, c E.27, ss 1(1), 2(1), 4(1)

Tax and financial compliance

The business may need to:

• obtain a CRA business number;
• register for GST/HST when required;
• maintain accounting and payroll records;
• deduct and remit source deductions;
• report corporate, partnership, or personal business income;
• issue proper invoices and receipts;
• comply with provincial sales-tax rules where applicable; and
• maintain records of sponsorships, registration fees, prizes, commissions, donations, and foreign payments.

Using a “sports association,” “collaboration,” or “sole proprietor” label does not determine the legal structure. The actual relationships and flow of money are material.

2. Foreign or extra-provincial organizations operating in Ontario

A non-Canadian corporation is generally a Class 3 extra-provincial corporation under Ontario law. Extra-Provincial Corporations Act, RSO 1990, c E.27, s 2(1)

It must generally obtain an Ontario extra-provincial licence before carrying on business in Ontario. Extra-Provincial Corporations Act, RSO 1990, c E.27, s 4(2)

Ontario considers the corporation’s practical activities, including whether it has:

• a resident agent or representative;
• an office, warehouse, venue, or other business location;
• an Ontario contractual or operational presence; or
• other continuing business activity in Ontario.

Merely taking orders, selling goods, or offering services through advertising or correspondence does not, by itself, establish that the corporation is carrying on business in Ontario. Extra-Provincial Corporations Act, RSO 1990, c E.27, s 1(2)–(3)

A Class 3 corporation carrying on business in Ontario must also maintain an Ontario agent for service. Extra-Provincial Corporations Act, RSO 1990, c E.27, s 19

Failure to obtain a required licence or maintain the required agent can restrict the corporation’s ability to maintain proceedings concerning contracts made by it in Ontario, although the default may be remedied. Extra-Provincial Corporations Act, RSO 1990, c E.27, s 21

It must also file an initial corporate return within the applicable period under Ontario’s corporate-information legislation. O Reg 400/21, General, under the Corporations Information Act

3. Event-specific requirements

The organizer should determine whether it requires:

• municipal permits;
• venue approval;
• fire and occupancy approval;
• public-health approval;
• road-closure or special-event authorization;
• music, broadcasting, or intellectual-property licences;
• insurance, including commercial general liability and participant accident coverage;
• first-aid, medical, emergency, and evacuation plans;
• qualified officials, coaches, or safety personnel;
• equipment inspection and maintenance;
• concussion and return-to-play protocols; and
• accessibility accommodations.

If the event involves children, additional safeguarding measures should include screening, supervision, transportation and accommodation protocols, parental communications, reporting procedures, and rules prohibiting sexual exploitation, harassment, and retaliation.

4. Employment and contractor obligations

The organization must correctly classify and treat employees and contractors. Obligations may include:

• written employment or participation agreements;
• minimum employment standards;
• payroll deductions;
• vacation and public-holiday entitlements;
• occupational-health-and-safety compliance;
• workplace-harassment and violence policies;
• workers’ compensation registration where applicable;
• human-rights compliance; and
• accommodation for disability.

Calling a person an “independent contractor,” “agent,” “collaborator,” or “volunteer” is not conclusive. Control, economic dependence, integration into the organization, exclusivity, payment, and the real working arrangement are relevant.

5. Recruitment and athlete contracts

Recruitment materials and contracts should clearly disclose:

• the legal identity of the operator;
• the organization’s affiliations and authority;
• registration, travel, accommodation, and visa costs;
• compensation, prizes, commissions, and sponsorship terms;
• cancellation and refund rules;
• insurance coverage;
• disciplinary and safeguarding rules;
• ownership and use of images and recordings;
• confidentiality provisions;
• dispute-resolution terms; and
• the athlete’s ability to withdraw.

False or materially incomplete representations about affiliations, sponsorships, prizes, national-team status, employment, or financial opportunities may create civil or regulatory exposure under the Competition Act, RSC 1985, c C-34, ss 52 and 74.01, and criminal exposure where fraud is proved under the Criminal Code, RSC 1985, c C-46, s 380.

6. Minors and vulnerable athletes

Where minors participate, the organization should implement:

• verified parental or guardian consent;
• age verification;
• vulnerable-sector screening where appropriate;
• two-adult or equivalent supervision policies;
• safe transportation and accommodation;
• restrictions on private communications;
• documented reporting and escalation procedures;
• protection from sexual contact, exploitation, drugs, and coercion; and
• compliance with provincial child-protection legislation.

Consent to participate in sport does not authorize trafficking, sexual abuse, exploitation, coercion, or criminal conduct.

7. Immigration and cross-border participation

A foreign athlete, coach, official, or worker entering Canada may require immigration authorization. Whether an exemption applies depends on the person’s role, remuneration, duration, and activities. Canadian athletes travelling to the United States require separate U.S. immigration analysis.

The organization should not promise that an athlete may work, compete for compensation, coach, perform promotional services, or receive payment without confirming the applicable authorization.

8. Privacy, marketing, and intellectual property

The operator should comply with applicable privacy legislation when collecting:

• medical information;
• identification documents;
• photographs and videos;
• emergency contacts;
• financial information; and
• information about minors.

It should obtain appropriate consent for marketing and recording, use secure data practices, and avoid misleading endorsements or unauthorized use of celebrity, league, national-team, or governing-body branding.

“Team Canada” or similar national-team representations should not be used without actual authorization where the branding could mislead athletes, sponsors, or the public.

9. Criminal and civil boundaries

A sports setting does not excuse otherwise unlawful conduct. Depending on proof, conduct involving deception, coercion, exploitation, or concealed financial arrangements may engage:

• fraud;
• trafficking;
• material benefit from trafficking;
• sexual offences;
• intimidation;
• obstruction of justice;
• public mischief;
• false or misleading advertising; or
• civil claims for misrepresentation, breach of contract, negligence, harassment, or privacy violations.

Those conclusions require evidence connecting specific individuals to the relevant acts, knowledge, intent, and benefit. The allegations in the attachment should therefore be presented as allegations or investigative leads unless independently proven.

I hope this information helps. We haven't had a resource about this until now, so I hope it finds you and assists you on your journey !

- Champion David
Canada