Starting a Business in Canada
If you’re a new or aspiring business owner looking to operate in a different country, you might find the perfect location for your company in Canada. Several qualities make Canada a great place for a business to grow.
But how do you start a new business in Canada if you’re not Canadian? The purpose of this page is to teach you how to start a business in the country if you don’t have citizenship there.
We’ll answer why Canada is such an ideal spot for businesses. Then, we’ll give you some step-by-step advice for getting your own business started in the country, whether you plan on moving there, running your company remotely or growing your organization.
Why Start a Business in Canada?
There are a lot of reasons you might want to explore your business idea in Canada. Not only does the country have a solid economy, but it also has several other aspects that make it an ideal place to conduct business.
Canada has a very low corporate tax rate of 15% for foreign companies. This is far less than that of other countries like the United States, which has a tax rate of over 20%. The income tax treaty also allows companies without a permanent establishment (set place where you conduct business) in Canada to avoid paying Canadian income taxes on operational profits.
To avoid having a permanent establishment, you will need to hire an independent contractor to sell your items. The contractor must also have other clients. Canada also has a huge pool of skilled workers. The country has one of the highest proportions of workers with tertiary education or training beyond high school in the world (63%).
How Non-Canadians Can Start a Business in Canada
The process for starting your business in Canada will be different based on what type of business you have and whether you plan to stay in your country or move to Canada eventually. Even though Canada has advantageous conditions for businesses, you should still conduct market research to make sure you can sell your services or products there before making the leap.
You may even already have a semi-successful business you’re looking to expand into Canada. Whatever your situation is, the next few sections will give you a general outline of how you can start your business in Canada.