The benefits of opening a company in Canada in 2023
Canada is one of the most promising countries for starting a business. Local authorities are interested in research and development, manufacturing, and digital services entrepreneurs. They encourage opening a company in Canada 2023 through grants, tax credits, and other decent offers.
Canada's advantages for business
Ontario's capital, Toronto, is the second-largest tech hub in North America. More than 14,000 startups are operating there, offering various services across the country.
Other advantages of Canada include the following:
- Quick and easy business registration.
- The minimum amount of equity capital is 1 CAD.
- Corporate tax is 15%.
- One of the lowest levels of corruption in the world.
- Operating costs are lower than in the USA, Australia, and the UK.
- No problems with opening a corporate bank account.
- Prestigious jurisdiction means there will be no problems with international business. Rich natural resources allow you to operate in a variety of business spectrums.
- Highly educated population is well versed in digital technology.
- Foreigners who open a business in Canada can get many tax benefits. For companies that use certain advanced technologies in their work, the government can refund up to 65% of the costs of creating the business.
Speaking of the advantages of Canada, it's necessary to mention the geographical location. The country ranks second in the world in size and has many attractions, so tourism is actively developed here. Canada shares a border with the United States and has signed many avorable business agreements with that country. Also, Canada has access to three oceans, which allows sending goods anywhere globally at a low cost thanks to developed logistics (more than 500 ports and 18 airports).
How to register a business in Canada
Before opening a company in Canada, you should decide how to register your business - at the provincial or federal level. In the first case an organization is registered in a particular province and can operate only on its territory. In the second case, the company can offer its services anywhere in Canada.
The next steps are as follows:
- Obtain an entrepreneur's work permit if you plan to move to Canada. For this, the person must own at least 50% of the shares of the Canadian company. You can apply for permanent residency one year after registering your business.
- Get a business work number.
- Determine the type of legal entity you will register - LLC, corporation, partnership, sole proprietorship, etc.
- Determine the company name and check its uniqueness at NUANS. If it's not occupied, reserve it with the Corporate Registry.
- Rent an office that will be registered for the company. It is where business documents and official records will be kept.
- Gather a package of documents - information about the shareholders (owners), the charter, a statement confirming the reservation of the name, the document on the lease of the office, and a commercial number. You also need a certificate from the bank, which confirms that the account has a share capital. All papers must be in English or French, registered at the notary.
- Apply for company registration with the necessary package of documents.
- Register a GST/HST account if you plan that annual income will exceed $30,000.
When the company is open, the entrepreneur must register with the tax office and pay the necessary fees. It is important to remember that Canada is not offshore, so resident corporations must pay income tax on all international income.
Directors of a Canadian company must hold regular general meetings of shareholders. The first one must be organized within 18 months after incorporation. Then meetings can be held once every 15 months, but no later than six months after the completion of the previous financial meeting.
How to open a company in Canada quickly
Contact an IT-OFFSHORE expert to incorporate a business in Canada in 2023.