This article talks about everything you need to know about why Canada is best for business.
Have you ever wondered what it’s like to do business in Canada? Well, there are many reasons why you should pursue this entrepreneurial path. Lots of business organizations and publications list Canada as one of the best countries to do business, including no less than Forbes Magazine.
In fact, according to Forbes, Canada was rated the best country for business in the North America a few years ago. One reason for this is that the country asks for very little tax from corporations and has a very stable banking system. If you want to know more, check out the following list.
Why You Should Have a Business in Canada
1. Lowering corporate taxes
Canada has one of the world’s lowest corporate tax rates at 15 percent. Among other things, this can be interpreted to mean that this North American country is really encouraging businesses to invest in the country.
In addition, the demand for labor to work continues to rise, productivity increases as a result, and with time wages, employment and output also continue to grow. However, due to the global pandemic, countries all over the world have hit a road block in terms of economic growth, and Canada is no exemption.
So what has Canada done in terms of taxation to address the current health crisis? Well, one thing the government has done is announce a stimulus package worth 107 billion Canadian dollars to make the economy stable as it supports Canadians that are affected the most by this health crisis.
Canada has also added subsidies for eligible entities. There are different types of eligible entities. These are an individual, a taxable corporation, registered charities, private schools and colleges, a partnership, and more.
2. Stable Economy
In 2019, Canada is ranked by Forbes as the 6th best country to do business. The country has continued its impressive growth in industries such as the service sectors, mining and manufacturing.
Canada’s economic stability can also be attributed to the fact that it has the third largest oil reserve in the world, behind only Venezuela and Saudi Arabia, and it is seventh in oil production. Canada also has an abundance of natural resources and a labor force that is highly skilled.
In terms of Gross Domestic Product (GDP), Canada is ranked tenth in the whole world. reaching 1.80 trillion dollars. One of the major key players in Canada’s stable economy is international trade, in particular of its natural resources. Canada’s biggest trading partner is the United States
3. Highly Skilled Workforce
Canada is known for being a very attractive destination for highly skilled workers around the world. In fact, in 2018, Canada paved the way for around 425,000 people to work in the country, increasing the country’s population to a staggering 1.4 percent.
So how did Canada attract so many highly skilled workers? For one, Canada has excellent immigration programs that attract workers with high levels of skill as well as skilled business persons.
In addition, Canada also has a program to help employers hire migrant workers. They also have a program for temporary workers that are evaluated based on several factors, including their skills, language ability and experience.
4. Low Cost of Living
The video shows what a typical cost of living is like for an OFW. As a summary, here are some of the expenses while living in Canada:
Car Payment – $671.46 per month, equivalent to 24,400 pesos per month. The OFW invested in a car since where they work, there is basically no public transportation aside from the taxi.
- Car Insurance – $282.34 per month or 10,250 pesos per month. You can’t drive a car in Canada without a car insurance.
- Gasoline – $100 per month or 3,630 pesos per month. This is the average rate, and goes down
- House rent – $800 per month or 29,100 pesos. This is a one bedroom apartment and is cheapest in their place.
- Phone bill – $45 or 1,640 pesos excluding the phone. $106 or 3,900 pesos per month if phone is included.
- Internet – $188.39 or 6,900 pesos per month.
- Electricity – $50 or 1,800 pesos in the month of December. During summer months this is cheaper because you don’t have to use the heater, which is always turned on during the winter.
- Food – $600 or 21,800 pesos per month. This includes groceries and eating out.
The YouTuber OFW has an hourly salary of $20.71 / hour. She works as a PCA, or a personal care attendant.
Now you may think that the rates are expensive compared to the Philippines. That’s true, but when compared with the rest of the world, Canada’s cost of living index is equivalent to that of the United States.
Moreover, Canada’s purchasing power index, or its citizen’s ability to afford goods by relating the monthly income and cost of living, is twentieth in the entire world, even higher than Japan, Italy, UK, New Zealand and more.
It is no secret that Canada is one of the safest countries to live in. For one, crime rate in this country is one of the lowest in the world.
Here’s a list of other reasons why Canada is considered safe:
- Canada has an excellent healthcare system and social assistance.
- No one is allowed to bring any concealed weapons. – That includes pepper sprays and knives.
- In general, Canadian citizens are basically tolerant of race.
- Canadians have a reputation of being friendly people.
- The country is governed by rule of law through effective law enforcement.
- Canada’s universal healthcare system is accessible even to immigrants. – Once immigrants obtain residency status, they can avail of Canada’s excellent health care system.
How good is Canada’s health care system? Well, most residents prefer public health care over private health insurance.
6. Lots of Small Business Opportunities
There are so many business ideas available in Canada. Here are some of them, recommended by business ideas experts:
- A.I. businesses – in order to help employees working repetitive jobs, such as those in the fast food industry, you can create artificial intelligence solutions for some of the duties of the workers. Employers will definitely need this as the minimum wage continues to rise.
- Smart traffic businesses – in large cities and municipalities across Canada, private businesses have been called upon to provide smart solutions for roadway efficiency. This kind of business utilizes advanced sensors and other technologies to make cities operate in a more efficient manner.
- Immigration support center – this kind of business helps immigrants find a job in Canada, as well as allow them to seamlessly adapt to the new environment. If you are passionate about helping others, then with a little bit of cash you can start this kind of business.
- Online dental consultation company – there are several doctor business companies available right now, but a dental consultation seems pretty rare. With this business, you can help people by giving them online consultation without having to leave their homes and go to the dental clinic.
- Renewable energy consultation business – The price of gas continues to rise, so alternative sources of energy are really in demand these days. If you are interested in this topic, then you can launch a business related to energy consultation. You can work with the end consumers or governments as well for consultations on renewable technologies.
7. Diverse and Supportive Society
Canada has always been, and will continue to be a diverse society. In fact, among all G8 countries, Canada has the highest percentage of citizens that are foreign born.
Canada recognized that immigration is socially important. The government calls it multiculturalism, and it even has a law called the Canadian Multiculturalism act of 1988.
There are several advantages to having a multicultural workplace. These include the following:
- Respect for cultural differences – by having a multicultural workspace, a window for new ideas and cultures is opened, and you become enriched in many different ways.
- Creativity increases – you will be creatively stimulated by just being surrounded by people of different cultures, each one contributing their ideas to keep approach to projects fresh.
- Workforce will continue to be global – soon, when this global health crisis will be over, the world will go back to what it already is; smaller than ever before. Global communication is, after all, important if a business wants to be truly successful.
8. Healthcare Prioritized
Canada’s healthcare system is praised around the world for its accessibility and fairness. Everyone is covered in Canada, and healthcare insurance is paid through taxes.
When patients get treatment, they are almost always given free of charge. Payment is funded through taxes collected by the government. As you can imagine though, tax rates in Canada are relatively high.
Each province in Canada is given a significant budget for free healthcare to its citizens and residents.
9. Modern Network of Transportation and Infrastructure
It’s not understatement to say that the infrastructure of Canada is one of the best in the world. As such, it is an international hub for trade and high tech businesses.
Canada’s transportation system includes long stretches of railways, transcontinental systems, roadways, expressways, and a well-developed and relatively cheap public transportation system.
Canada also has massive seaways and navigable water ways that allow vessels to cross oceans. Canada’s major ports include those in Halifax, Quebec, Montreal, Toronto, Thunder Bay, and others.
General Facts About Starting a Business in Canada
Here are some facts you need to know before you can start a business in Canada.
- Requirements for residency – you can’t start a business in Canada unless you are a citizen of the country or you are a Landed Immigrant. That means that if you have a work permit, a student visa, or are a visitor in Canada, you can’t start a business.
- Some businesses don’t require registration – if you have a business in Canada and you’re a sole owner, and if your businesses name is equivalent to your legal name, then you don’t have to register your business. In some provinces in Canada, in fact, like Labrador and Newfoundland, if you’re a sole owner of a business you don’t have to register it.
- Getting loans – the primary source of loans for startups and established businesses in Canada is the Canada Small Business Loans Financing Program. There are other options as well, including the rising number of new private sources.
- Having a good business plan – each year lots of small businesses are started in Canada. However, a lot of them fail. One of the biggest reasons for failure is lack of good planning. Therefore, before you even think about starting a business, you should write a business plan.
- How to finance your new business – According to a study about entrepreneurship in Canada, the average amount that small business owners start with to invest in a new business is 5,000 dollars. In most cases, owners get the money from their own pockets.
- Grants for startups – As mentioned above, most small business owners used their own money to start. There’s a small number of grants for small business startups in the country. When there is a grant, it is usually attached to certain conditions. Most of these grants also focus on certain locations, industries or even groups of people.
There you have it. This list shows why Canada is always near the top of a global list when it comes to best places to do businesses. Just remember that you have to choose a business with a good understanding of your strengths and weaknesses. Have a simple business plan and make it grow, and make sure that whatever your business is, you’re passionate about it.