7 reasons why you should register a company in Canada

Canada is world-famous for its favorable business environment. In 2019, the country ranked third among 197 nations for the startup ecosystem that can be found there. 

Toronto, Ontario is the second largest technological cluster in North America and it is a very promising location where you can start a business. Below please find seven reasons why you should consider registering a company in Canada and engaging into profitable business operations there.

1. Canada’s international standings

A company that has its legal address in Toronto is thus located in an economic and financial center of North America, close to New York, Chicago, Los Angeles, and Washington. Traveling from Toronto to other business centers is simple and fast.

Besides, Canada is a signatory to important international agreements, which makes doing international business from there very convenient. The North American free trade agreement and the trade agreement between Canada and the European Union gives free access to North American, South America, and European markets where a billion potential customers reside in total. Canada in general and Toronto in particular are extremely popular locations among international entrepreneurs.

For example, recently Canada has been recognized and the only yuan trade center in both Americas. This shows that Canada has close economic ties with China, which will facilitate doing business with your Asian partners as well. Shortly speaking, a Toronto-based company can engage into international business with any part of the world.

2. Technological innovations in Canada

Canada has a long history of technological innovations. In particular, MaRS Discovery District is a leading business acceleration center in the world. It provides intellectual and financial assistance in creating high-potential business companies. Between 2008 and 2015, more than 1,000 startups were established in the District generating a total income of 1.3 billion dollars. The place is a home for the new generation of Canadian companies.

Toronto is also a huge technological center with a prospering startup community of more than 14,000 companies established there. Such technological giants as Microsoft, IBM, Cisco, Google, and Facebook have divisions there.

3. The ease of doing business in Canada

The World Bank experts consider Canada the second best country to start a business among the G20 states and the sixth best country in the world. Canada ranks especially high for the simplicity of obtaining a bank loan and the protection of minority investors’ rights. In addition, the ‘Competitive Alternatives’ report shows that Canada is second only to Mexico for the cost of starting a business there. The sum of money required to set up a company in Canada is 75% of that required in the USA.

Canada ranked 18^th for the ease of doing business among 189 countries in 2018, according to the World Bank report. Of the 26 criteria, Canada ranks especially high for the following three: 

• Ease of company registration (rank 2);  
• Protection of minority investors’ rights (rank 8); 
• Ease of obtaining a credit (rank 12).

What is more, it is possible to register a company in Canada without leaving home. The whole process is going to take between 1 and 4 business days on the conditions that all the application documents are in good order. The prospective company owner has to file an application with the federal or provincial authorities and register for the VAT. This will suffice for starting a business in Canada.

4. State support to the entrepreneurs in Canada

Tax incentives. Foreign nationals registering companies in Canada are entitled to apply for various tax cuts. The Canadian Government is especially interested in incentivizing scientific research and experimental developments. If your company is engaged in some sort of R&D, you can count on paying less in taxes in Canada.

State subsidies. The Government of Canada makes every effort to support successful startups. Forbes reports that the Government covers up to 65% of the business establishment costs when the company applies some innovative technologies. Such government support can hardly be found in any other region of the world. The Government grants can be divided into four types in Canada: 

• Grants and subsidies for business expansion; 
• Grants for capital investments; 
• Grants for hire of qualified personnel and personnel training;
• Research and development grants. 

A competitive business environment, R&D, and financial stability allow the Canadian authorities to stimulate innovative technologies development.  

5. Abundance of talents in Canada

Education is free in Canada and it is well financed by the state. Canada always ranks among the top countries when their education systems are assessed. Canada is the leader in the following education-related areas:   

• The percentage of workers with university degrees; 
• The percentage of workers with highly valuable skills (as defined by the Human Capital Index proposed at the World Economic Forum);
• The depth of knowledge that schoolchildren have in Canada.

Toronto is a favorite destination for talented immigrants from other countries, which makes the city an ideal place to establish an innovative company. Every year, thousands of highly qualified workers settle down in Toronto. The diverse and integrated workforce market found in the city is a major driver of its economic success.

6. Toronto – Waterloo Corridor

The Toronto – Waterloo Corridor is analogous to Silicon Valley in the USA. Over 15,000 companies are located there employing more than 200,000 people. The Corridor is one of the leading technological clusters in the world and the second largest such cluster in North America. It connects the largest Canadian city of Toronto with Waterloo that is the center of innovations and scientific research in the country.

Because Toronto ranks second in the world for the density of large banks’ headquarters located there, it is a city where investment capital of around 1.5 trillion dollars is available. Waterloo, in its turn, is second in the world for the density of startups located there. Such giant corporations as Uber, Microsoft, and и Google have offices and innovation facilities there. The combination of the available investment capital and the intellectual powers to be found in the Toronto – Waterloo Corridor makes this location perfect for starting an innovative business company.

7. Growing startup ecosystem in Canada

The technological ecosystem in Canada keeps growing showing no signs of slowing down even with the COVID-19 pandemic raging around.

There are three large innovations centers in Ontario and they work together to raise a new wave in the technological ecosystem in the country that will allow more companies with capitalizations over 100 million dollars to emerge on the surface of the business ocean in Canada.

We have to stress that the business investments trend is on the rise in Canada. In September of 2019 alone, four investment projects with the venture capital of more than 100 million dollars were launched in Hamilton, Vancouver, Toronto, and Montreal. This achievement cannot be overestimated as the whole of 2018 saw only three such investment projects.

As you can see, Canada offers all conditions necessary for launching an ambitious technological startup there. Are you ready to take the responsibility for integrating with the business environment with a very high potential? You will have to think fast and work hard to make the grade but the opportunities available in Canada look extremely inviting.

So why don’t you register a company in Canada, acquire a Startup visa, find support from an authorized business accelerator and strive for success in the business world?

If you have questions or some doubts about the possibility to register a company in Canada, please request a personal consultation from us. We will gladly answer all your questions and dispel all your doubts. You are welcome to contact us by email, WhatsApp, or our live chat. We guarantee that your personal information will remain confidential.