Whether you are looking to expand your existing business or start a business while in a foreign country, Canada offers excellent opportunities. The country offers many advantages to non-resident entrepreneurs who want to pursue Canada company incorporation.
Let’s dive into the article to understand how foreigners can tap into the Canadian market and how they will benefit.
Understanding the Canadian market
In Canada, you have an opportunity to incorporate companies federally and provincially. The differences between these two incorporations are the jurisdictions under which they operate.
Federal corporations operate nationwide and are incorporated under the Canada Business Corporations Act (CBC), whereas provincial incorporation solely operates in a province. However, if you consider registering federally, you may be required to register as an extra-provincial corporation in every province you intend to operate.
Here are the reasons as to why you should tap into the Canadian market:
Global connectivity
Major international airports in Toronto welcome immigrants who come to invest in Canada, creating opportunities for trade and business opportunities. So, when you tap into the market, you can leverage the market and start networking to build a global connection and expand your business internationally.
Tap into the United States
Canada and the United States share two borders and a bilateral relationship. When you register a business in Canada, you have the opportunity to tap into the United States market as well, allowing expansion of your business.
Stable economy
Canada has a stable economy and the banking system is a strong one. It also offers a high living standard which is consistently growing. This shows stability to entrepreneurs who want to expand their business in Canada and relocate there. They get to tap into the economy while living comfortably.
Political stability
Canada has a transparent regulatory environment that supports and reduces the risks associated with foreign markets.
Innovation
With technological advancement, Canada’s innovation is thriving since it is home to many research and innovative companies. Canada fosters innovation by supporting private-public collaboration in 5 industry-led sectors, offering a total of $950 million in funding to be dispersed by 2028.
Natural resources
The country boasts of natural resources such as minerals, timber, gas, and natural oil. If you want to start a business in the energy or mining industry, you will leverage the resources to expand your business.
With all these advantages, you can decide to start a business in Canada and get benefit from them. As a foreigner, it is not a must to be in Canada to launch your business; you can register a business while you are abroad.
Here are the key points for starting a business in Canada without being physically located there:
- You can register a business in Canada online through an agent. There are a lot of company formation agents in Canada like BusinAssist who offer online registration whether federally or provincially.
- You can choose to have a director who is a Canadian citizen to help you form a company. Since they may be conversant with the legal and administrative matters and if not, they would know which agents to trust to register the business.
- If you want to live in Canada while running your business, you can explore business immigration programs like the Start-Up Visa, which is designed for innovative entrepreneurs.
Step-by-step process on how to start a business in Canada as a foreigner
To set up a business in Canada, you should:
Do market research
You may have many business ideas you want to venture into but when expanding or starting from scratch in a different country, it is important to understand the market to choose a niche that will succeed.
Check which businesses are profitable in Canada and how your competitors are operating to get an idea of how you will maneuver the market. Also, try to understand which licenses are needed in that industry and how much they are to see if it is something workable with your budget.
Choose a niche
Now that you understand the Canadian market, choose a niche that is in demand and profitable. Starting a business in a foreign country can be expensive, so it is important to choose a niche that is profitable and in demand. These businesses can pick up quickly and help you get profit real quick and start expanding.
Seek mentorship
Once you choose a niche, seek counsel or mentorship to understand how to go about it. Experienced professionals can guide you on how to go about starting a business in Canada. Understanding a foreign market is crucial since you have never been there it is better to get professional guidance from experienced professionals.
Create a business plan.
Once you have sufficient guidance, you can create a well-documented business plan on how you plan to launch your business and where you will get funds from. Let the plan highlight your mission, vision, goals, marketing research, market strategy, products or services you will offer, funding projection, value proposition, competitive analysis, risks, challenges, short-term execution, and monetization strategy.
You can also add a staffing plan to create job opportunities for Canadians to contribute to the Canadian economy while getting skills from them.
Look for investment
Now that you have a viable and concrete business plan, start pitching your ideas to investors to get funds to launch the business. There are platforms where you can get investors who are ready to fund startup businesses.
You can also consider your friends and family if they can fund your business. Personal savings is also another way to fund your business when starting. There are other platforms where you can look for funds such as crowdfunding, business loans, and government grants. Business loans and government grants can be acquired once your business is registered.
Register your business
You can choose to register your business federally or provincially. Understand the differences before choosing the corporation you want to register. As mentioned above, federal corporations can operate and get name protection nationwide but may need extra-provincial registration in the provinces where the business is operating. Provincial corporations only operate in the province of incorporation and get the name protection in the respective province.
The differences between federal and provincial incorporation include:
Jurisdiction
Federal incorporation is governed by federal laws while provincial incorporation is governed by provincial laws.
Name protection
Federal incorporation offers name protection nationwide, meaning no business even at the provincial level can incorporate their business using your business name. Whereas, provincial incorporation provides limited name protection in the province of registration. A business in another province can use your business name since it has no protection in that particular province.
Business reach
Federal corporations can operate across Canada in any province or territory, while provincial corporations can operate only in the province of incorporation by default. Both must register in any province or territory outside their home jurisdiction if they carry on business there.
Director’s Residency
While there is no residency requirement for directors of a provincial corporation, at least 25 percent of the directors of a corporation must be resident Canadians.
Costs
Incorporating a federal corporation is cheaper than a provincial incorporation, however, often involves higher initial costs compared to provincial incorporation. Incorporating a provincial corporation can be expensive, but the initial costs are less expensive and time-consuming than the federal incorporation.
Now that you understand the differences between the two, you can decide which corporation will work best for your business.
Open a business bank account
It is important to open a business bank account in Canada to build confidence with suppliers and customers. As a foreign national, you will need a Canadian bank account that will deal with the transactions of your business.
Apply for permits and licenses
Apply for the necessary permits and licenses needed for your business with government agencies. This will ensure you are compliant with either federal or provincial laws.
Market your business
Once you have registered your business, start marketing it on social media platforms to attract customers. Create a marketing strategy with consistency in message delivery and use keywords to attract customers who are searching for products or services associated with your business in Canada.
Network
Always yearn to learn more from professionals who have a lot of years of experience in your industry. This will ensure you are in a community and understand the trends of the market to keep your business updated.
As a foreigner, you can trust certified and authorised agents to help you incorporate your business. Agents like BusinAssist offer both federal and provincial incorporation in Ontario to help you seamlessly launch your business.
The journey can be daunting since you are new to the Canadian market, but with the right guidance, your business will take off effectively. So, what are you waiting for? Tap into the Canadian market and benefit from the advantages they have to offer.
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