News: Registration of Business in Canada
How to open a business in the Canada?
Canada, the second largest country in the world, boasts an excellent indicator in the field of economics and transparency in doing business. Being somewhat isolated due to its location, it acts as the main trading partner of the United States; it presents a tidbit to sophisticated European investors.
Business in Canada
According to a research conducted annually by the DOING JONES team, Canada is firmly entrenched in the top five countries with the most favourable business climate. The simplicity and organicity of the adopted laws, the interest of the state in attracting experienced foreign businessmen led to the formation of a stable economy and high level of infrastructure.
A huge number of applicants is eager to move and work in Canada. The government had to limit the flow to a certain degree.
Those, who want to start business in Canada, envision a huge number of prospects and positive factors leading to business success:
- Huge number of government programs to attract and support foreign investors,
- Economic and financial stability,
- Sufficient level of technology,
- Perfect infrastructure,
- Stable economy,
- Powerful legal system,
- High level of education,
- Skilled labour,
- Lack of corruption and bureaucracy.
The vast territory and rich natural resources allowed Canada to become a country of business immigration, more interesting than the USA.
However, recently for relocation and business, Canada has begun to impose certain requirements on future entrepreneurs. In most cases, they relate to experience and qualification level, amount of start-up capital, uniqueness of the future business.
Establishing Business in Canada
A simple way to start a business in Canada is to get a business visa. There are several types:
- Pilot program to attract foreign investors, providing for the presence of a significant amount of funds and excellent knowledge of one of the official languages. Possession of these two distinctive characteristics implies the ability of a foreign investor to organize a business personally, without third-party infusions and subsidies.
- START-ups program. This program provides for the possibility of introducing promising and innovative business ideas in Canada that are capable to compete in the domestic market and allow emergence of new job vacancies. In addition, the following requirement is a prerequisite for obtaining this visa: an official confirmation with a guarantee from a Canadian company to support this start-up or confirmation by the applicant of a certain amount of finance. Language requirement is similar to paragraph 1.
On conditions of self-employment, entrepreneurs with sufficient experience and qualifications, as well as financial reliability, are entitled to start a business in Canada.
The best forms of companies that characterize business in Canada are:
- Private enterprise.
- It is not recognized as a legal entity. Liability extends to all property of the founder.
- Joint venture.
- It is an association of 2 or more persons, through the aggregation of finances in order to perform certain tasks and agreed business. Liability of the participants for the company's obligations is individual, proportional to the contribution made to the authorized capital.
- Partnership.
- It can be with limited and unlimited liability. Formed by association of 2 or more companions. The main goal is the implementation of joint action or goal achievement.
- Affiliation of foreign company.
- Company is established by a separate representative office of a foreign company. It requires registration in the provinces of implementation activities.
- Trust.
- This form is used mainly for property management.
Учреждается отдельным представительством зарубежной компании. Требует регистрации в провинциях осуществления деятельности.
- This form is used mainly for property management.
Small Business in Canada
The simplest form of enterprise in Canada is an individual enterprise belonging to a small business. Its formation does not require a significant amount of financial resources; the state provides maximum assistance. Low lending rates and preferential tax system have a positive effect on small businesses in Canada as a whole.
Small business plays a significant role in the Canadian economy, being its integral part. More than half of the products are manufactured at these enterprises, providing ¾ of work vacancies.
This form can also include the previously mentioned self-employed citizens.
Registration of Business in Canada
It is not easy to register a company in Canada, but with the help of specialists, the process becomes clearer.
Thus, registering a business in Canada will require to implement most of the standard procedures inherent in European countries:
- Verification of the uniqueness of the name, preparation of constituent documents, notarization and submission to the Ministry of Industry of Canada. Upon completion of registration, the company receives a unique business number.
- Payment of state duty, deposit of funds in local bank accounts, registration in social insurance agencies.
- Acquisition of a license in case of need.
- Submission of company registration information to the Revenue Agency and receipt of a corporate tax number.
Usually, registering a business in Canada does not take more than 3-4 weeks.
Important information:
- In case of turnover excess in the amount of more than 30,000 Canadian dollars, registration is required at the Revenue Department as a VAT payer,
- Tax system is multi-level: the state , provincial and territorial budgets.
Our specialists provide expert assistance in selecting the form of the future enterprise, warn of possible risks, and also help to buy business in Canada. Own enterprise abroad is the key to a successful future.
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