Why Set Your Business Up in Canada?
By Upasana Sharma, Canadian Immigration Lawyer
Every day, our office is contacted by an entrepreneur or a c-level executive asking about moving all or some of their operations to Canada and if we could help. In some cases, they want to start a new business and in others, they want to open a branch office. Sometimes, they are looking to purchase an existing business, and sometimes, they are looking for an investment opportunity with no immigration play in mind. Whatever they need, Canada has several different business immigration programs designed to fit the specific requirements of these foreign business owners or senior managers.
So, why Canada? One of the main reasons is that The Organization for Economic Co-operation and Development (OECD) lists Canada as the #1 country in the world for entrepreneurs.
The most prominent Fortune 500 companies are expanding their existing operations or establishing new R&D hubs in Canada. Here are just some reasons why world-leading companies are setting up shop here.
Canada is the best country for global investment. Period.
It can be difficult to seize opportunities and avoid risk in this tumultuous world. Global companies need to find ecosystems offering both stability and vibrancy to grow and succeed.
Canada is that place. And investors are taking notice.
Ranked 38th in population, Canada punches well above its weight. As of 2020, Canada had the world’s 13th largest economy (in terms of FDI inflows).
1. GLOBAL MARKET ACCESS
Canada gives investors preferential market access through 15 trade agreements to 51 countries with nearly 1.5 billion consumers and a combined GDP of US$52 trillion.
Canada is well placed to serve as a central hub for global trade. Our air transport infrastructure is the best globally, and our coastal ports provide direct maritime access to Asia, Europe, and South America. The Great Lakes also provide easy access to the U.S.
Our infrastructure facilitates a continual supply chain and business operations combined with secure trade corridors and gateways. Canada boasts 13 International airports (43 airports of entry), 17 Seaports, and 117 Border crossings to the USA.
The Canada-United States-Mexico Agreement (CUSMA), which took effect in 2020, replaced the North American Free Trade Agreement (NAFTA) and modernized continental trade.
The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) ensures 98% of EU tariffs are duty-free for Canadian goods and guarantees market access to both the EU and North America. Over the next seven years, a further 1% of tariff lines will be phased out, making 99% of all Canadian goods entering the EU market duty-free.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gives companies operating in Canada preferential access to one of the largest trading blocs in the world, including key markets in Asia and Latin America.
2. HIGHLY SKILLED TALENT
Need talent? Canada is the leader globally, with nearly 59.4% of Canadians aged 25–64 having graduated from post-graduate education institutions.
And if you can’t find the specialized skills you need in homegrown talent, you can quickly bring in top international talent through the Global Skills Strategy. For example, eligible workers can receive work permits in as little as two weeks through the Global Talent Stream.
Here are just some examples of the type of talent Canada boasts. We are first among the G7 nations in attracting highly educated people. #1 Talent attractiveness among G7 nations
Canada led the Tech Brain Gain 2021, holding 3 of the 4 top spots.
- #1 Toronto +54,862
- #3 Montreal +15,772
- #4Vancouver +11,256
3. LOWER COSTS, LOWER RISK
The Canadian marginal effective tax rate (METR) now stands at 13.7 percent, the lowest in the G7 and below the OECD average.
Canada is second only to Japan among G7 countries in political stability.
SOUND BANKING SYSTEM
Canada has the top six safest banks in North America. These same six banks are ranked among the top 35 in the Global Top 50 of the world’s safest banks.
Canada ranks 2nd in the G7 and 11th globally on the Corruption Perceptions Index 2020.
4. INNOVATION AND TECHNOLOGY
New technologies come to life in Canada thanks to an innovative ecosystem that connects investors with initiatives, incentives, and programs. Here are some of the more common programs
SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT PROGRAM (SR&ED)
Canada’s most extensive R&D tax credit program provides billions in tax credits and incentives to businesses conducting R&D in Canada.
STRATEGIC INNOVATION FUND
The Strategic Innovation Fund bolsters business investments in Canada’s most dynamic and innovative sectors by supporting business activities such as:
- R&D projects
- Firm expansion
- The attraction of large-scale investments
- Collaborative R&D and technology demonstration projects
- INNOVATION SUPERCLUSTERS INITIATIVE
The Innovation Superclusters Initiative connects businesses, academic institutions, and not-for-profit organizations to generate bold ideas, drive economic growth, attract top talent, advance innovation and transform regional ecosystems.
We are employing digital technologies to improve the health and lives of Canadians.
Advancing plant proteins to feed the world.
Building up next-gen manufacturing.
We are constructing intelligent supply chains using AI and robotics.
Accelerating innovation, commercialization, and sustainable economic growth from our oceans.
Matched dollar-for-dollar by the private sector, these five superclusters will infuse nearly $2B in the economy and grow Canada’s GDP by $50B over the next ten years.
PAN-CANADIAN ARTIFICIAL INTELLIGENCE (AI) STRATEGY
The first-in-the-world Pan-Canadian Artificial Intelligence (AI) Strategy establishes clusters of scientific excellence, develops global thought leadership on AI’s economic, ethical, and legal implications, and supports the national AI research community.
5. QUALITY OF LIFE
Are you searching for the best quality of life? You found it. Home to some of the world’s most impressive sceneries and vibrant cities, Canada offers the perfect space to live, work and play. Settle in and find out for yourself. There’s no better place to be.
- #1 Best quality of life
- #1 Best for human freedom
- Canada has six cities among the world’s top 100 best cities:
- Toronto #13 Vancouver #34 Montreal #41 Calgary #47 Ottawa #67 Edmonton #76
Learn more about how to Set Up Your Business in Canada
Investor Quotient Canada is a premier professional services firm offering a suite of business, legal, logistical and related services to foreign innovators and entities looking to establish and/or expand their operations into Canada or invest in Canadian businesses.
Contact Upasana Sharma to schedule a consultation to learn about which program best suits your investment needs.
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