If your dream has always been to open a small business, then Canada is the place to be. Starting a business in Canada requires a significant amount of time and effort. However, if you’re ready to put in the work, it may be just as gratifying. When launching a new business, it’s critical to understand all of your alternatives and prospects. A good grasp of what it takes to manage a business in Canada can help you avoid costly mistakes and focus on what is essential to you.
Contrary to popular belief, it is feasible to establish a small business in Canada. The Canadian economy has 1.23 million employer enterprises as of December 2019. 1.2 million (97.9%) of these were small businesses and companies. Overall, Small firms employed 8.4 million people in Canada in 2019, accounting for 68.8 percent of the total private labour force. Small firms also provided 41.9 percent of the private sector’s gross domestic product (GDP).
Canada has traditionally been regarded as being business-friendly. The North American country is a prominent choice for entrepreneurs wishing to grow or move their businesses because of its hospitable culture, robust economy, and relatively inexpensive start-up expenses.
If you don’t have permanent residency, however, you won’t be able to apply for government loans or grants, but there are still many options to get your firm up and operating. So, ff you wish to establish a business in the Great White North, here are 5 things you need to know about starting a business in Canada.
1. Legal Status in Canada
If you wish to establish a business in Canada, you should consider several Canadian business immigration options. To apply for permanent resident status, you must demonstrate that your business plan has economic potential. In addition, you must have enough money to support your endeavour and care for yourself and any family members who may accompany you.
2. Create a Strong Business Plan
Because it requires study and comprehensive thought, developing and outlining your business concept may be a tedious and time-consuming process. As you begin to prepare for your relocation to Canada, it is good to set aside some time for market research, identify your market niche, create company goals, and thoroughly flesh out your product and/or service. When applying for a business visa to Canada, such as a Start-up Visa Program, you will be asked about your business plan and objectives. A solid business strategy is essential for obtaining a business visa in Canada.
Suppose you already have a business and wish to expand it in Canada after migrating. In that case, you need to examine how you’re going to adapt and localize to the Canadian market. And once in Canada, you may review local competition before putting your company strategy into action.
3. Financing Your Business
Starting a new business is a risky venture because there’s so much capital involved. However, there are various ways for you to source financial backing.
Banks have generally been hesitant to make loans to startup businesses. One factor is that they do not know how dependable the company will be. Another reason is that they are concerned about the risk: what will happen to your business if you are unable to repay them?
That is why most business owners rely on small-business financing. A small-business loan is proportionate to the value of your company. It also allows you to retain some control over your business or company.
Other fundraising options include internet crowdsourcing, appealing to angel investor organizations, and joining a business incubator.
4. Registering Your Business
Once you have obtained permanent residency, the next step is to register your company with the province or territory where your business will be based. Again, this process varies significantly depending on where you reside.
5. Canada’s System of Incorporation
There are basically three types of corporations in Canada: sole proprietorships, partnerships, and corporations. Each option has pros and downsides; the one you choose relies on your specific business plan.
6. Taxes and Returns
Ensuring that you charge the necessary sales taxes for the items and/or services you provide is critical to the profitability of your business. Therefore, you should become acquainted with the federal sales tax, the Goods and Services Tax (GST), as well as provincial taxes such as the Provincial Sales Tax (PST), Retail Sales Tax (RST), Quebec Sales Tax (QST), and Harmonized Sales Tax (HST).
Starting a Business in Canada: Immigration Pathways
Canada has various Canadian business immigration options. The country accepts entrepreneurs to enter and start their ventures in a variety of ways, including the Self-Employed program, the Start-Up Visa program, and various provincial entrepreneur initiatives. Each choice has its own set of criteria and limits, so do your homework before deciding on a course of action. The easiest way to get the information you need is by hiring a qualified immigration consultant; For more information and professional assistance about Canada’s business and investor visa options, head over to the immigration consultant agency CanadianVisa.org.