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What do you need to know, to open your business in the Canada?



A well-developed economy, the lowest income tax and crime rate, excellent health care, the highest per capita income, low energy prices and other important conditions for a safe and peaceful life and make this country very attractive for immigrants. Therefore, often citizens of other countries, disillusioned with their homeland, where the economic or political situation leaves much to be desired, leaves the homeland and goes in search of a “better life” to Canada. People dream of having a ready business in Canada and their homes, getting a good profit, and living with dignity. Immediately it should be said that the government of this country largely supports small business in Canada, and does not prevent the introduction of foreign companies.

Business activities here do not require costs, as, for example, in the neighboring US. Having the lowest income tax, Canada provides good conditions for the creation of its business. And, if an emigrant wants to realize a dream in life, he needs to know where to start, and what “pitfalls” he will be expected upon arriving in this benevolent, at first glance, country.

So, how to start a business in Canada?

At the first you need to explore your competitors. Where you can get them? I take them at the — here you research competitors, check where they are stand and etc. It is a very important step in how to open your business in Canada!

The second thing to do is to come up with an idea and draw up a business plan. Then determine the form of ownership — the company will have one owner or several. And, of course, you need to have seed money. For small businesses, this is a minimum of $ 5000. Next, you should come up with a unique name for the company, which should not coincide with the already available options. If, according to preliminary estimates, the firm’s income exceeds $ 30,000 per year, you will have to register with the Tax Office. Otherwise, this is not required. It would be a good idea before starting the paperwork, to assess the prospects for business development with the help of the National Entrepreneurship Test, a special test developed by the Government of Canada for immigrants wishing to start their own business. This test can be found on the Internet, after its passage, general recommendations are issued, and the prospects and the idea itself are evaluated. Any business will have to also insure, which will entail additional costs.

In Montreal or Toronto, as in other cities in Canada, business registration is the same. There are no principal differences. the laws of one country are the same for all cities. So, the forms of opening a business in Montreal (and other cities in Canada): Corporation (Corporacion) — something like our JSC or CJSC, a merger of shareholders where the owners of shares are not responsible for the actions of the whole corporation as a whole. Partnership (Partnerchip) with limited and unlimited liability. Here, all partners have the same equal rights, both on the property of the enterprise and on the total capital, as well. The partnership agreement and actions, as well as the responsibility of its participants, are inextricably linked. Self-employment (Setp-employment) is an individual property, analogue of our individual entrepreneur or state of emergency. Trust — with this form of business creation there are a founder, a manager, or a trustee, and beneficiaries who enter into an agreement with each other.

To open a business in Canada, particularly in Vancouver, you need to know that unincorporated business is registered with Revenue Canada (something like our tax service), free of charge, at any branch. After this, the entrepreneur is given a business number, as well as a GTS number. There you can also register a trademark for about $ 70. Corporate enterprises are registered with the Ministry of Consumer and Commercial Relations in Toronto. But, first you need to pick a unique name, not a repeating name. You can come up with the name yourself or order it in the agencies specializing in it. Today in Canada there are a lot of companies offering such services. The cost of this service starts from $ 35, their numbers can be found in any telephone directory in Canada.

What difficulties can arise?

To register an enterprise, a foreign entrepreneur needs to obtain a work permit in the country. In order to become a citizen of Canada, you must reside in its territory for 3 years. The founders of the corporation should include at least one citizen or resident (permanently resident) of Canada. Many activities require obtaining a license (but there are also areas where a license is not needed). You must know the official language, in Canada it’s English. A good knowledge of the language is simply necessary for the entrepreneur, otherwise even simply filling out forms for registration can turn into a serious problem. Asking someone to help in this business is risky, since the provision of their personal data to an unauthorized person is fraught with their further use for fraud. Often a major problem is the lack of funds. Even an experienced businessman does not always manage to accurately calculate the required start-up capital, let alone the fact of “business emigration to Canada.” It happens that the family comes to the country, begins to register business, there are some delays with the registration or further development of the business. There is no profit, the incomes of others, too, and the family has to live on money that should have gone into the business. As a result, money is “eaten up”, and failed businessmen have to go to work for the owner, for example, to distribute pizza. Great competition in all spheres. In this country, where tolerant and loyal to representatives of different nations and religions, crowds of people wanting to live without difficulties and problems are bursting.