A word or term is prohibited if it implies an association with or the approval of federal or provincial governments and/or their agencies and departments. For example, “Province of Ontario Chemicals Inc.” and “Government of Canada Ice Cream Ltd.” would almost certainly be rejected.
A name will also be rejected if it includes the word “Canada” preceded by a word or term that is within the scope of activities in which a person might believe the federal government is involved in. For example, “Firearms Control Canada Inc.” and “Hockey Development Canada Inc.” would probably be rejected, as a person might confuse these for departments or agencies of the Government of Canada.
However, a name like “Fun House Mirror Canada Inc” might be accepted, as it is unlikely that anyone would believe that the Government of Canada is in any way affiliated with fun house mirrors.