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10 Reasons to Move your Business to Canada

10 Reasons to Move your Business to Canada

10 Reasons to Move your Business to Canada

Canada is the top destination for businesses looking to expand internationally.

10 Reasons to Invest in Canada

Planning to start a business or looking to expand internationally?

Well, Canada is the place for you. Investing in Canada offers plenty of opportunities in terms of everything right from the urban infrastructure to political stability.

Did you know that Canada has the soundest banking system among G7 countries and also ranks sixth among 141 countries?

Also, for 2020-2024, Canada is ranked as the best country in the G20 for doing business by the Economist Intelligence Unit(EIU), March 2020.

Of all the G7 countries, it is Canada that has the lowest tax rate on new business investments as reported by the Finance Canada Calculations and OECD Tax Database, November 2019.

CountryOverall RankingTotal Tax & Contribution Rate (%)No. of hrs spent on Compliance
Canada1924.5%131
United States2536.6%175
United Kingdom2730.6%114
Australia2847.4%105

Some of the top global businesses are planning to expand to Canada. This itself is a clear indication as to why investing in Canada is the better option compared to other countries.

If you’re a young entrepreneur having the vision to start a tech startup.

Or an existing business looking to set up an R&D center, Canada offers tons of benefits and also provides endless opportunities to grow.

Let’s have a look at why Canada is so attractive for international businesses and one of the top destinations for business immigration.

tax incentives for foreign businesses in Canada

If you’re planning to immigrate, set up an online business, or invest in Canada, here are some other reasons why investing or expanding business in Canada can prove to be beneficial comparatively.

1.      The Epicenter of Trading Activities

You get to access global markets and is the epicentre for all trading activities to around 51 countries through 14 trade agreements. According to Global Affairs Canada, 2020, it is the only country among the G7 to have a trade agreement with every other G7 country. So, whether you’re planning to grow your business or set up one on your own, you are sure to get the best returns and maximum profits with over 1.5 billion customers by investing in Canada.

2.      Exceptional Market Access

With 24 International airports, 17 seaports, and 117 border crossings to the USA, without any doubt, Canada offers the best air and other means of transport, providing smooth business operations along with quick and direct access to Asia, South America, and Europe.

Easy trade to the US is possible due to its provision through Great Lakes. Some of Canada’s Trade agreements are CUSMA, CETA, and CPTPP which ensures smooth trading and returns across the globe.

3.      Incredibly Talented Workforce

With advanced education systems, Canada has a workforce with brilliant minds and highly talented individuals making it the most attractive country for investing. It is one of the highly educated workforces with, 58% of Canadians have received higher education between the ages of 25-64. Not to mention, Canada attracts the top talent pool through its various immigration programs. 

4.      Lowest Corruption Rates

When you’re investing in business outside the borders of your country, keeping tabs on the corruption rate of that state is essential. And Canada may be just the perfect location to invest as it has the lowest corruption rate among the G20 members and stands in the 12th position globally. This is another major reason why foreign investors are choosing Canada to expand their business.

5.      Incentives and Programs

The Canadian Government has come up with some of the best programs and initiatives to encourage advancements in technology and innovation. It is regarded as one of the most generous nations when it comes to tax incentives to perform R&D activities. Some of the initiatives and programs are undertaken, which are Pan-Canadian AI Strategy, Innovation Superclusters Initiative, Strategic Innovation Fund, SR&ED, and more.

Read also: Canada – on the road to become a new global R&D hub

6.      High Standard of Living

Canada, known for its natural beauty and attractive cities, it is the best known for human freedom. It is an excellent city to study and work, apart from investing. Undoubtedly, Canada attracts a huge number of immigrants and foreign investors.

In fact, Canadians enjoy the highest standard of living in the G20 reported by IMF, World Economic Outlook, 2019. The top three cities for the best quality of living are Vancouver, Toronto, and Calgary. Setting up an R&D center in these cities for your business will be easier as they are the central hub for all the business activities. 

7.      Highly Competitive Economy

Canada has one of the lowest corporate taxes compared to other nations, and it is also one of the most competitive economies globally. All these factors make Canada one of the best locations to invest in R&D activities or expand businesses. Its innovation ecosystem is finest due to the numerous initiatives and strategies. As per the IMF World Economic Outlook 2019, it is predicted that Canada’s economy will grow at 4.2% in 2021 after contracting in 2020 due to the pandemic.

8.      Second Politically Stable Country

According to the 2019 World Bank reports, Japan is at the top in terms of political stability, and Canada is just one step below among the G7 countries. Investing in Canada has great potential due to the stability of the Canadian Government. If you’re an entrepreneur, setting up your start-up venture in Canada will be easier than in any other country.

9.      One of the Safest Countries

Whether you’re expanding your business to Canada or immigrating to Canada as a Permanent Resident, is it one of the safest countries in the world, and safer when compared to the US. With the low crime rates, it is safe to say that business or living in Canada can be transitioned smoothly.

10.  Excellent Support by the Government for Businesses

Canada offers a lot of support to businesses and investors. While the pandemic has impacted every individual and business significantly, the Government of Canada has come up with COVID-19 Economic Response Plan to support individuals, businesses, sectors, organizations helping Canadians, provinces, and territories. This timely and decisive initiative taken by the Govt. is exemplary.

Advantages for Foreign Investors

To attract foreign investors, the Canadian Government outlines various initiatives and programs. Due to its attractiveness, foreign investors are all the more driven to set up their businesses in Canada. Due to its welcoming nature, Fortune 500 companies are expanding their market in top Canadian cities.

Treatments for foreign and local investors are the same and have the same right as that of the local businesses making it one of the best nations to invest. It encourages research and development activities through the SR&ED program, where it provides billions in tax credits and incentives to the businesses involved in innovation in Canada. No Doubt, Canada is the new R&D hub in the world. 

Investing in Canada offers lower risks, and there’s no reason to not set up your R&D center or expand an existing business here. With Canada ranking high in the Global Peace Index, is truly one of the top locations to live a quality life and set up start-ups or grow business beyond the borders of your country. Trading is made easier than ever here.

Maroof HS CPA Professional Corporation helps businesses looking to start or expand in Canada. We provide a range of services from Corporate income tax planning in Canada to Business Plan Writing for your immigration applications.

Get in touch with us!

Fatima Aslam

Fatima Aslam

Fatima Aslam writes exclusively for Maroof HS CPA Professional Corporation and Innovation Hub on common topics related to business.

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