Thinking of doing business in Canada

It’s easy to understand why Canada is an attractive market for companies looking to invest overseas

The opportunities:

Size: Second largest land mass in the world with significant fresh water resources (The Great Lakes) and ports on Pacific, Artic and Atlantic oceans.

Location: Canada is located in a geographically superior area for global trade. Toronto is Canada’s largest city – 7 million inhabitants - and Southern Ontario is within a 1 hour flight and a day’s drive of the North-eastern US (New York, Boston, Washington, and Philadelphia) and Detroit and Chicago to the west, this proximity to the US is a competitive advantage.

Safety: Canada is home to the world’s safest and most valuable banking systems. It ranks 6th of the world’s 50 most secure banks.

Access: Free trade agreements: such as NAFTA (US and Mexico), gives companies access to cross-border trade with neighbouring countries such as Mexico and the U.S. as well as the FTA’s with Israel, Chile, Peru, Columbia, Costa Rica, Panama, Honduras and Jordan allow cross border access. Working on final details of European Free Trade.

Skills: Canada has a highly skilled, well-educated and mobile workforce and attracts labor from countries all over the world.

Tax incentives: as a leader among the G-7, Canada offers low corporate tax rates. It also has a combined federal-provincial statutory general corporate tax rate averaging 26%. This tax rate is below the level of most of the G-7 countries and 13 points below the U.S.

Setting up a business Canada

There are areas that companies need to be aware of before setting up in country – corporations need to allocate significant resources to stay within compliance and governance otherwise they can potentially face risks to their reputation and potentially prosecution.

Canada proves to be a large opportunity, however, there are some overall considerations:

  • Corporations will need to allocate significant resources to stay compliant.
  • Some states hold individuals, within companies, liable for non-compliance.
  • Failure to comply with rules and regulations can result in significant tax penalties and “loss of good standing”; this can affect your ability to do business.
  • Each province has different local compliance regulations.

It might be required to register in each province; this will depend on each province’s statues. TMF Group helps corporations keep compliant with local regulations and filings – and has helped many businesses large and small, set up in Canada with speed, safety and efficiency. We have local experts providing:

International incorporation and structuring: We implement the legal set-up and structuring of new or existing operations.

International entity management: We help you stay compliant, manage your risk and stay on the right side of regulators and filing requirements.

Office premises: Whether you need registered addresses, rented offices or assistance managing your own premises, we can help with both your current and future needs.

HR and payroll: We help you to hire the right people, apply and implement international policies in employment contracts and handbooks, and pay your staff in compliance with local law.

Accounting and tax: We take care of local statutory bookkeeping, full consolidated accounts and reporting and management reporting to relevant local and international standards

If you are already operating in Canada, we can also help by simplifying, streamlining, and/or consolidating your operations, to aid you in your growth plans within Canada.

Are you planning to expand into to Canada.? Make an enquiry!

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