The Advantages of Opening a Company in Canada

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Choosing a country to start a business in is harder today than a few years ago, as many states meet most of a businessperson’s conditions. Among the aspects investors are interested in are the ease of doing business and economic predictability. Canada is one of the states that respects these requirements, however, there are also other reasons to decide on it.

The lines below present some of the most important advantages to setting up a business in Canada, based on which you can decide if this jurisdiction is what you are looking for.

Canada’s economy is resilient

The pandemic was a cornerstone for many economies of the world, and even if it has been some time since, there are countries that are still recovering after that period. On the short list of those that have made a good recovery is Canada. Its main advantage is the business environment, which focuses on attracting foreign companies. As one of the top 10 largest economies in the world, Canada relies on:

• low inflation;
• foreign direct investment;
• stable economy, which allows predictability;
• large financial institutions that are based here.

So, if you are looking for a destination that enables you to enjoy such benefits, Canada is definitely a good choice.

Access to trade partnerships

Canada is one of the G7 states that has maintained good economic cooperation with the world’s largest economies. Among its trade partnerships are:

• the North American Free Trade Agreement;
• the Comprehensive Economic and Trade Agreement with the EU;
• the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

If you decide to open a company in Canada, such agreements are important when seeking to expand operations or enter new markets.

Attractive taxation system

Even if Canada’s taxation system is a two-tier one, as it comprises both a federal and provincial or territorial component, it is still attractive. This happens because the Government offers a federal tax abatement and general tax reduction, which lower the net rate to 15% (even lower for certain industries) from the initial 38%.

For Canadian-owned companies, the net federal tax is even lower – 9%, if they qualify for the small business deduction.

At a provincial or territory level, the rates start at 0% and are not higher than 15%.

Variety of business structures

Since taxation depends on the type of entity used to launch the business, it is worth noting thatthere are several business forms foreign investors can choose from. If you decide on a local enterprise, you can register a partnership or a private or public corporation.

If you already have a business in your home country, you can register a branch in Canada if you want full control over it, or you can decide on a subsidiary. You can set up both types of companies with the help of experts from BridgeWest  Canada.

One of the most talented workforces in the world

If Canada is known for one thing, that is its immigration system. The vast territory it occupies led to the creation of one of the most favorable relocation programs in the world, especially for foreign talented workers.

Canada enables foreign people to access several immigration programs based on skills. However, if you prefer local talent, Canada also has one of the best education systems in the world, so you can recruit talented employees while still enrolled in higher education studies.

High quality of life

Even if your main purpose is to do business in Canada, the quality of life a country offers is not to be ignored. From this point of view, Canada ranks among the top states in the world for the quality of life and environment. To these advantages, are worth adding the above-mentioned education system, which is a great one, and the healthcare system, which is very appreciated.

These are only a few of the advantages of starting a business in Canada, as the country has many opportunities to offer to all types of entrepreneurs. So, no matter if you decide to set up a local company by means of immigration or to expand an existing one, no doubt that you will find local support, a great business environment, and good living conditions.