This article is an introduction to the Canadian market for anyone who is interested in growing their business in Canada.
Canada is a country that has been growing in population and economy since the late 20th century. The government has also seen an increase in immigration, contributing to its growth. Canada’s population is now over 37 million and ranks as the world’s second-largest country by area. Canada also ranks among the top 10 countries by GDP (gross domestic product).
Canada’s economy relies on natural resources, manufacturing, and service industries. With a GDP of $1 trillion USD, it ranks as one of the wealthiest countries in the world. Canada also ranks as one of the most educated countries with more than 50% of adults having at least some post-secondary education.
It is no surprise that many people want to start a business in Canada because of its welcoming policies for immigrants and its stable economy with low unemployment rates and high wages compared to other countries.
7 Ways to grow your business in Canada
1. Develop your business plan:
The initial step is to formulate a plan. Ensure that you are prepared for this level of commitment. You might wish to start by:
- Deciding where you want your business to go,
- Inquiring into developments in the market and existing rivalries,
- Having a firm grasp on what potential clients want,
- Identifying the fundamental problems that your solution addresses,
- Understanding your target audience
- Follow a mentor who will guide you
- Plan a business structure
2. Choose a Location for your business in Canada
The location of your business can make all the difference. There are many factors to consider when deciding which city or town you will be operating, but a few things need to be taken into account.
If you live in a large city, be sure to find a good location near public transit and any other necessities that your customers may need.
Or, if you live in an area where traffic is heavy, consider finding a location on the outskirts of town.
If, you have a lower turnover rate than other businesses, then consider locating in areas with less foot traffic or that are close to residential developments.
3. Choose a business name
When deciding on a name for your company, keep in consideration the following:
- Make sure your business name must reflect of product
- Choose an easy name
- Give a unique and distinctive name according to Canadian law.
4. Register your business with the Canadian government:
Registering your business with the Canadian Government is a relatively simple process. However, it is important to note that there are a few crucial steps that you need to take before filing your application. In order to file your application, you will need to be able to provide certain information. This includes:
- The capitalization of your company (if applicable)
- The name of the company’s legal representative and contact information for that person.
- The date of incorporation for the business.
- A list of addresses in Canada where the business is being conducted and in which provinces it is being conducted.
On the Government of Canada’s website, you can find links to each province and territory’s help for new businesses.
5. Apply for a business license under the Canadian government
In Canada, you are required to apply for a business license if you want to sell goods or provide a service. There is no limit on the number of licenses that can be applied for, and there are different types of business licenses under Canadian Law. Different provinces have different requirements in order to get your license approved.
6. Register your business for sales tax
Making sure you’re charging customers the appropriate amount of sales tax is a crucial part of running a successful business. In Canada, there is both a federal and a provincial sales tax.
This federal tax is added to most goods, services, and other things sold in Canada. Unless you qualify as a small supplier, businesses must register and charge GST or HST on all taxable goods, other property, and services.
Provincial Sales Tax (PST):
This is a sales tax on goods and services taxable in provinces that haven’t made their PST the same as the federal GST. Rates are set by each region, and they vary because not all provinces charge PST.
7. Get free tax help from the Canadian government:
The Canada Revenue Agency (CRA) gives small business owners and self-employed people a free service called “Liaison Officer” to help them understand their business tax obligations. The information you share with a Liaison Officer during a visit is completely private and will not be shared with other parts of the CRA or anyone else.
The Liaison Officer service can help businesses and people who work for themselves in two ways:
- personalized phone or online visits (videoconference)
- webinars for groups or groups of people
Pros of running a business in Canada
1. Shared cultural norms
One of the most obvious draws for business owners is Canada’s familiarity, which brings with it a host of other advantages. Shaking hands is the typical greeting in both Canada and the United States, although, in Eastern countries like Japan, a bow is more common. The United States has a similar population and language (in the Anglophone areas). Since Canada and the U.S. have so many of these similarities, expanding your business in Canada will be considerably simpler.
2. International trade treaties that involve Canada
Businesses in Canada has preferential access to a wide variety of international markets because of the country’s extensive trade network, another perk for foreign entrepreneurs considering setting up shop in Canada. North American Free Trade Agreement (NAFTA), the Comprehensive Economic and Trade Agreement (CETA) of the European Union, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership are all trade pacts that Canada is a part of (CPTPP).
3. Reduced Tax Rates for Corporations
Reduced business tax rates are just one of many additional benefits. Canada has one of the most competitive corporation tax rates in the world (compare to the U.S.’s 21%) after lowering it steadily over the past nine years from 18%.