Canada and U.S are deeply connected in terms of interests, value systems, and economy. Canada has set up a large export market, with its purchasing capacity of various products and services from the U.S. An estimated $1.8 billion a day is known to be the trade generated between the two nations. Not just this U.S invests in Canada’s foreign investments as well on a large scale.
Canada has proven to be the best choice for business investments due to its flawless banking system, learned manpower, and availability of ample resources.
Whether businesses on a smaller scale or mid-level, Canada is a popular choice for businesses who want to make a mark in the global market or people who wish to immigrate to Canada and start a new life.
Why Choose to Do Business in Canada?
Owing to the similarity in the culture of both the U.S and Canada, for instance, their language, demography, and greeting by shaking hands, has made it convenient to start a business in Canada.
Reduced Tax Rates
Canada deliberately reduced the Corporate Tax Rate to increase its economic growth rate and welcome international business. The tax rate was largely reduced from 18 % to 15 % in 2019 by the CRA (Canada Revenue Agency) andcontinues to be, while the U.S tax rate is 21%.
Canada’s Trade Agreements
Canada provides opportunities to businessmen with broad global markets. Its trade Agreements are classified as NAFTA, CETA, and CPTPP.
Protection of Intellectual Property
Canada has an eye for creation and invention. Therefore, it is bound to protect Intellectual Property through various other international IP agreements and treaties including the Madrid Protocol, Singapore Treaty, WIPO Patent Law Treaty, and NICE Agreement.
According to experts, business expansion is highly advisable to protect IP. To protect IP in foreign markets it is also essential to register IP rights under local law.
The huge benefit of business expansion in Canada is its ability to fulfill essential requirements of the Uniform Commercial Code (UCC).
Yet, there are certain flaws in Canada’s system of lien searches and filings because this system only permits electronic filings to take place and you can’t submit filing copies. Additionally, the Collateral Statements are brief and not definite, unlike the U.S.
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Risks Involved in Canadian Business
Before you expand your business to Canada, it is better to know the details of the challenges you might face in the future.
Since Canada has ten provinces and each has its own government, it is important to know all about the provincial laws, rules and taxes.
Even the labor laws in each province differ from one another. Consequently, these different laws also determine the contractual rules for the employees.
For instance, Quebec follows a civil law system so all the filings must be completed in the French language only.
There are major differences between the U.S and Canada and this certainly can’t be taken for granted as being exchangeable. Quebec on the other hand consists of people with a completely different attitude because they are formal.
Additionally, it is recommended that all the relevant business cards and academic credentials must be translated into French and English.
Basics of Licensing Requirements
Architectural and Engineering industries consist of similar licensing rules in the U.S and Canada. But in Canada, professional licensing involves intense preparation. Therefore, it becomes necessary to have detailed knowledge about licensing.
Several Canadian industries have extended procedures for getting permits. For instance, it might take up to nine months for the construction industry to receive the permit.
Enforcing Contracts in Canada
Enforcements of contracts in Canada can be a tedious and challenging task for those who want to expand their business to Canada.
World Bank in 2019 reported that it takes not less than 910 days to rectify an erroneous contract.
Industry based restrictions in Canada
To remain relevant in the Canadian market it is important for business starters to label their products in French and English keeping in obedience to the Consumer Packaging and Labelling Act of Canada.
Industries related to Finance, Transport, Telecommunications, Culture, and Broadcast have to follow specialized rules enforced by Canada for acquiring domestic companies.
In case any foreign contenders are willing to acquire these procedures and win a contract, they are expected to fulfil the essential criteria.
Prior Document Checking
Before you extend your company or business in Canada, your documents pertaining to the origin will be thoroughly verified. This means that your documents must be authenticated by the country office where it was issued and where it will get used.
Available Options for Business Immigration
Canada aims to bring in more individuals who can make substantial contributions to the Canadian labor market. If you are an individual with the required skills, such as business acumen and excellent entrepreneurial qualities, then you surely apply through several options available in terms of business immigration. They are as follows:
The Investor Immigration category fits best for individuals who can invest on a larger scale for the Canadian economy and those who have a net worth with adequate capital.
If you are someone possessing experience in business management and are interested in setting up your own business in Canada then you could apply for programs under the Canada Entrepreneur Program.
Entrepreneur Start-Up Visas
If you can acquire funding and support from an organization that is designated for Canadian investment and also if have a solid and innovative business plan then getting the Entrepreneur Start-Up Visa will be easier for you.
With a specific province in mind for your business then you can choose from several immigration programs under Canada’s Provincial Nomination Programsconcerning that province.
Canada being the second-largest country surely solidifies the chances of a successful business for newcomers.