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Features of opening and running a business in Canada. How to open a business in Canada (British Columbia)

Business immigration to Canada in 2019 is one of the most reliable ways for Russians, Ukrainians and other foreigners to move to permanent residence to a prosperous country with good prospects for obtaining Canadian citizenship in the future. Similar to most developed countries in the world, the Canadian government is interested in attracting foreign investment and is happy to welcome experienced foreign businessmen who are able to create new jobs in Canada and benefit the local economy.

Canada's main trading partner is the United States, where about three-quarters of all Canadian exports are sent, including huge amount oil and gas resources. By the way, in terms of oil reserves, Canada ranks 3rd place in the world. High level technology development, economic and financial stability, an effective tax system, fair courts - this is far from full list advantages for doing business in Canada.

The country has a powerful industry and a developed service sector, low levels of crime and corruption, and ideal infrastructure. Canadian universities provide quality education and are valued throughout the world, and the workforce is accordingly highly qualified. Flexible legislation, vast territory, two official languages ​​( English, French) and many other factors allow you to choose the most suitable place to immigrate to Canada in order to open a business.

How to open a business in Canada

It's no secret that conducting entrepreneurial activity- this is a rather risky undertaking, especially when it comes to opening a business abroad, in in this case in Canada. Many important decisions need to be made, ranging from choosing the location, direction and form of ownership of the future company, ending with the amount of investment, tax optimization and effective control.

One of the main tasks of a foreign entrepreneur is obtaining a business visa to Canada. In order to attract successful businessmen to the country, stimulate economic development and increase employment, the Canadian government has developed special immigration programs, each of which has certain requirements. This mainly concerns the experience and qualifications of a foreigner, the amount of assets and the innovative component of the business.

Immigrant Investor Venture Capital Pilot Program

The program was launched back in 2010, but we immediately note that periodically new applications for participation are not accepted. The government opens access when Citizenship and Immigration Canada substantiates the need for additional foreign investment. You can track the status of the program.

Basic requirements:

    Amount of assets at least 10 million Canadian dollars, which is equivalent to 7.5 million US dollars. In this case, the funds must be earned as a result of legitimate business or investment activities. The total amount does not take into account financial resources received as an inheritance, as well as the value of real estate used as a primary residence. All this is checked very carefully. To participate in the program you must be prepared to invest at least 2 million Canadian dollars to a special venture fund for up to 15 years without any guarantee of return and income.

    The second mandatory condition concerns ownership of one of official languages - French or English, which must be confirmed by an international certificate or testing. In addition, a foreigner must have at least a year of higher education under his belt. educational institution, which meets Canadian standards.

Start-up Visa

A business immigration program to Canada designed to launch promising innovative ideas that can compete in the market, generate profits and create jobs. Up to 5 foreign entrepreneurs can apply for a visa at the same time, provided they own at least 10% of the company’s capital for each and more than 50% in total.

Basic requirements:

    An official letter from one of the approved Canadian organizations with guarantee of support for a business idea. Here is a link to a complete list of such institutions. In some cases, proof of funds of CAD 75,000 or CAD 200,000 is required.

    Additional terms apply to good language skills (English, French) and proof of financial security to live in Canada. In 2019 for a businessman the amount is equal to 12.5 thousand Canadian dollars. For two people, for example, when immigrating with a spouse - 15.5 thousand.

Self-employed people

Based on a number of criteria such as experience, education, age, language skills and adaptability in Canada, foreigners may qualify for a business visa as self-employed individuals. This mainly applies to cultural figures, sports figures and entrepreneurs in the farming sector. Prerequisites- sufficient financial security, experience professional activity at least 2 years, medical examination and no criminal record.

Read more about business immigration programs to Canada and requirements for foreigners on the official government portal - cic.gc.ca. To open a business in the Canadian province of Quebec, visit the website – immigration-quebec.gouv.qc.ca.

Procedure for registering a business (company) in Canada

In the agency's report Doing Business 2019 Out of 190 countries in the world, Canada ranks in terms of ease of doing business. 22nd place. This is an aggregate indicator based on a comparison of a number of criteria. What is noteworthy about the procedure for creating a business is that the country is at 2 positions, and by connecting to the power supply system at 105 . Largely due to this, Canada is not in the top ten, but still the bureaucratic procedure for registering a company in Canadian authorities is kept to a minimum. Let's look at the main stages using the example of the city of Toronto.

    Registration and submission of documents to Industry Canada. This is done online within 24 hours, and after 5 days the company is assigned a special business number. The cost is 200 Canadian dollars. IN mandatory a special registration form is filled out, and the constituent agreement, information about the board of directors and the location of the company are also sent. To reserve a unique company name there is a fee additional fee - $21.47.

    After registering a new company, information about this is transmitted to Canada Revenue Agency, where a corporate number is assigned during the day income tax. You can find out about this on the official website of Industry Canada.

    In case of turnover over 30 thousand Canadian dollars per quarter is required to register with the tax office when Canada Revenue Agency as a VAT (sales tax) payer. The procedure takes less than a day, is carried out through a special website and is absolutely free.

Of course, purchase ready-made business in Canada or registering a new company takes certain time, has its own characteristics and requires specialist advice. Depending on the province and area of ​​activity, there may be additional conditions, for example, obtaining a license or special permit. Each case is purely individual.

Successful business in Canada by Russians, Ukrainians, Belarusians and any other entrepreneurs from abroad is impossible without choosing the optimal and accessible form of ownership for the newly created company. Highlight 4 main types of Canadian business structures - individual entrepreneurship, partnership, corporation And cooperative. Let's look at the most popular ones.

Individual entrepreneur . Means sole ownership of the company and full liability for the obligations of all personal property. Profits from professional activities belong entirely to the owner. The easiest and least expensive way to open and run a business in Canada. There is access to some tax benefits. Regulatory requirements very limited.

Corporation . Registration is carried out at the federal or provincial level, if the company's activities do not extend beyond the boundaries of a specific province. Generally, shareholders' liability is limited to contributions. A more labor-intensive and organizationally complex type of opening and running a business in Canada. To settle everyone legal requirements You will 100% need the help of auditors, lawyers, accountants and other Canadian specialists.

To change the ownership of an existing business in Canada, you need to close the company and then open a new one.

Taxes in Canada in 2019

According to international experts, Canada has the lowest tax burden on business among all G7 countries. Transparent system taxation and fiscal optimization options create the maximum favorable conditions to carry out business activities in this country.

Canada has a multi-level tax system - federal, provincial And territorial. Therefore, the general tax rates in each province may differ, and much depends on the type and scale of activity. For example, small businesses in Canada pay much less. In any case, the help of tax consultants will not hurt.

Basic tax rates in Canada in 2019

Corporate income tax. The basic federal rate is 38%, and after a general reduction - 15%. Provincial rates vary by province from 11.5% (Northwest Territories) to 16% (Nova Scotia, Prince Edward Island).

VAT (sales tax). The federal rate is 5%, the provincial rate is from 7 to 10%.

Income tax- progressive scale depending on income - 15%, 20.5%, 26%, 29% and 33%. In particular, in 2019, income up to 47.6 thousand Canadian dollars per year is taxed at a rate of 15%, and income over 210.4 thousand is taxed at a rate of 33%.

Canada is a very dynamic and developed country, with rich natural resources and a diversified economy. Foreigners have a lot of areas for investment and opportunities for purchasing an existing business. Based on the type of activity, when choosing a region, focus on the population and purchasing power, the cost of renting premises, competition and tax rates. The most promising and major cities to open a business in Canada in 2019 - Edmonton, Toronto, Winnipeg, Richmond and Vancouver.

An enterprising person is always looking for ways to increase his income. Even having his own business, he does not stop and thinks about its improvement and expansion, even outside of Russia. One option to succeed is in Canada. There are strong arguments for why in this country.

Reasons to open a private enterprise in Canada

Skeptics and indecisive people are unlikely to risk opening their own business abroad. This is especially true for those Russians who have faced many difficulties in their own country. However, once you delve deeper into this issue, it turns out that this is an erroneous opinion.

The Canadian government pursues a loyal policy and provides substantial support to small businesses not only for its citizens, but also for immigrants. The result of such a reasonable approach at the state level is the hope of solving employment problems. Supporting start-up businessmen contributes to the development of the country's economy as a whole.

Reduced tax obligations, the possibility of lending and consulting, a favorable psychological environment on the part of the state and various business corporations are serious arguments in favor of organizing your own business in this country.

Distinctive features of Canadian business

Everything is learned by comparison, and you shouldn’t get hung up on the idea that the more developed the country, the higher the taxes. This conclusion does not apply to Canada - the local tax policy is radically different from generally accepted dogma.

In this regard, all differences from other countries can be called advantages:

  • the size of the authorized capital does not matter;
  • the shareholder is responsible only for his own share of capital;
  • unlimited period of activity of the enterprise;
  • December 31st is an optional completion date. financial year;
  • the company is managed by a board of directors, of which more than half must be Canadian citizens;
  • An audit is required every year.

Canadian taxes and small business

Canada imposes taxes and excise taxes on small businesses. This is done by local and federal authorities.

Property taxes are collected by the municipality. Income tax is provided for citizens of the country living in it temporarily, for non-residents and residents.

Ways to open a business in Canada

There are three main options to start your own business in Canada:

  • Acquisition of a ready-made business- the simplest option that does not require a lot of hassle and time, but it will require significant purchase costs. You should also not forget about the need to carefully study the state of the enterprise, you should make sure that there are no debts or other financial or legal problems.
  • Organizing a business directly in Canada. This method provides a guarantee of all support from all sides: from the state and from the private sector.
  • Extension domestic business – opening representative offices, branches in Canada or its complete transfer to a new location. This option is suitable for successful businessmen in Russia who are seeking to explore new opportunities abroad.

These instructional tips will provide invaluable assistance to those who dare to open foreign business. It is important to follow each piece of advice in strict order.

1st step. Idea generation.

Any new endeavor is based on a certain idea, when a person comes up with the idea of ​​making his desires come true. It is necessary to evaluate the emerging idea for its viability. If this concerns business in Canada, you need to carefully study the legislation of this country in the field of business activity. Striking differences from the domestic requirements of current legislation cannot be ruled out.

When planning a business in a distant country, you should carry out marketing analysis, determine how much demand the chosen type of activity has. This is very important in terms of his further development.

Experts do not advise opening legal agencies or private medical institutions, because they are in Canada huge variety, and it will be very difficult to cope with the competition. As observations and conclusions of analysts indicate, the most acceptable for Russian entrepreneurs are the following areas: construction business, IT technologies, service in various directions.

A hot food delivery business can become quite successful. Canada loves Russian cuisine, so you can try to attract visitors with this. There is an option - a kitchen based on one dish, but with in various ways preparation and serving (pancakes, dumplings, soups, potato dishes, pies).

You will definitely need to develop an estimate of costs and estimated income.

2nd step. Choice of form of ownership.

The small business sector is popular among both Canadian businessmen and foreign entrepreneurs. Conducting a private business is supported at the state level, and aspiring businessmen are offered a choice of several forms of ownership:

  • Sole Proprietorship is something like when an enterprise has a single owner.
  • General Partnership is collective ownership when an enterprise has two or more owners.
  • Corporation or Incorporation – responsibility is divided among several owners.
  • Partnership with unlimited liability.
  • Limited Liability Partnership, similar.
  • Branch of a foreign company.

To realize the idea of ​​having your own business in Canada, the choice of property is carried out independently. A number of factors influence which option a businessman prefers: the availability of capital and its size, the chosen niche (level of demand and specificity), the planned scale of the business.

3rd step. Company name.

Don’t neglect the moment when you need to come up with a name for your company. Many businessmen have learned from their own experience that a significant percentage of success depends on the name. The meaning of the saying that whatever you name a boat is how it will float remains relevant to this day.

When it comes to Canadian business, professionals recommend the ideal company name – given name owner. In this case, you will be able to save money in the amount of $100, which would have to be paid for a mandatory check to exclude duplicate names.

4th step. Company registration.

A Canadian business is registered in one of the following ways:

  • By using " world wide web" The necessary forms are filled out online and sent along with the application to the appropriate service local authorities accounting.
  • By post. Forms are filled out in the format “Form RC1, Request for a Business Number (BN)” and sent to the tax authorities of the specific settlement Canada, where it is planned to open a business.
  • In telephone mode. When calling the Department of Canada, you need to be prepared to answer the questions that the service officer will ask.
  • Appear in person and independently register with the tax office in Canada.

Only those businessmen whose annual income is more than 30 thousand dollars are registered with the Tax Administration. Canadian legislation does not impose mandatory registration requirements for smaller entrepreneurs.

5th step. Company insurance.

Now you can actively engage in business activities.

Basic requirements for starting a business

Organizing a business in Canada will be guaranteed under the following conditions:

  • you must have 300 thousand Canadian dollars and proof of the legality of the source of their receipt;
  • entrepreneurial experience of more than 2 years;
  • within one year out of 3 years of residence in Canada, be the owner of a third part of the company’s shares;
  • successful completion English language V British Council;
  • agreement to the terms in writing.

Family members of a businessman are also subject to similar requirements if they intend to reside permanently in Canada.

The future entrepreneur is given conditions that his business must meet:

  • half a million Canadian dollars - annual turnover or 125 thousand dollars - share of assets at the end of the year;
  • The company must employ at least 2 people with Canadian citizenship.

If such requirements are met and a business visa is obtained, permanent residence in Canada is guaranteed after 3 years.

This video provides information about the pros, cons and features of Canadian business for immigrants, as well as useful practical advice:

Financial support

The state’s desire to support start-up businessmen is based on the belief that small businesses bring significant benefits to the country. They help solve unemployment problems by creating jobs. The more successful their enterprise, the higher their income, and, in turn, they pay higher taxes. As a result, the benefit is mutual: on the one hand, the well-being of an individual or company increases, on the other hand, the country’s economy develops.

Canada has adopted special government programs. Under one of them (The Canada Small Business), an immigrant entrepreneur can count on receiving a loan in the amount of a quarter of a million rubles. This loan is provided for 10 years at 3% per annum. It is guaranteed under the following conditions:

  • annual income must be at least $5 million;
  • if the business does not fall into areas such as religion, charity, agriculture.

The Canadian Business Development Bank of Canada is providing funding for another program aimed at supporting businessmen under the age of 29.

For foreign entrepreneurs it is offered The program Canada Immigrant Investor Program.

Besides software capabilities, in this state many banks are ready to provide loans to immigrants to open small businesses.

About 4 years ago, the Start-Up Visa program began to operate, the essence of which is to support newcomers to business from successful companies. It is aimed at transferring experience and helping to promote their business.

By established quota a certain amount foreign aspiring immigrant businessmen have the opportunity to learn how to establish business connections and gain skills from experienced Canadian entrepreneurs.

The Canadian government offers immigrant businessmen to use a specially designed test (National Entrepreneurship Test). Its results will help to assess how viable the business planned in this country is and to receive the necessary instructions for further actions.

The business atmosphere in Canada is so favorable that you should not hesitate, but boldly decide to open your own business in this country. Except state support, there are still low electricity tariffs and a loyal tax policy.

Canada is ready to accept any experienced foreign businessman who will create additional jobs in the country to benefit the economy. It is enough to pass a test developed by the Canadian government specifically for foreign entrepreneurs to receive all the necessary recommendations on organizing your own business in the country. Opening a business in Canada, contrary to the opinion of many businessmen, is not difficult. You should approach the matter carefully and responsibly, and very soon you will be able to conduct your own activities.

Advantages of running your own business in Canada

  • flexible legislation;
  • many support programs;
  • economic stability;
  • low taxes.

Therefore, if you dream of having your own business in Canada and want to make it a reality, we recommend that you find out where to start.

Financial support

The government of Canada supports the activities of any active businessman. And there are several ways to get help:

  • CSBF government program"Small Business Financing" is for you if your annual income is up to $5,000,000 and you are not engaged in agriculture, religious and charitable activities;
  • “Immigrant Investor Program” is a program created specifically for immigrants, and it is financed by exactly the same immigrants who have already achieved success and are ready to help beginners;
  • the bank’s “Business Development Bank” program for young entrepreneurs aged 18-29 years.

In addition, a novice entrepreneur has the opportunity to receive. The following banks offer lending programs for small commercial projects: Bank of Montreal, Royal Bank and Scotibank. There are also leasing companies, financially supporting small businesses.

It seems that everyone here who has money is ready to lend it to help your business grow. And yet, a loan should become a last resort when one’s own resources are completely exhausted and there is nowhere to get money.

Important! Get a loan in Canada medical activities and legal services are unlikely today, since in these areas there is a real “crisis of overproduction”.

Features of starting a business

From the very beginning, you should have a business idea, reflected in a good business plan (read). It is also important to determine which legal form is most beneficial for you. Will you become the sole owner of the business, or will you have a partnership project with collective or separate responsibility.

Come up with a name for your company and make sure that it is unique and does not coincide with those that already exist. You can verify this by paying about $100. By the way, if you give the business your name, you won’t even need verification.

You will need starting capital ranging from 5 to 30 thousand dollars. In addition, the business will also have to be insured.

Even before completing all the paperwork, you can find out how promising your business can become. The National Entrepreneurship Test will help you with this - a national test that the Canadian government developed for foreign entrepreneurs starting a business. After completing it, you will receive recommendations and an assessment of prospects.

Buying a business in Canada

For a newcomer to entrepreneurship, it may be easier to start by purchasing a ready-made business, especially since buying a business in Canada is not difficult. But even here you need to clearly understand where to start and how to avoid possible problems.

Be sure to find answers to the questions:

  • whether the company has debts;
  • to what extent the inventory value of the company’s property corresponds to reality;
  • whether the owner is trying to get rid of the “sinking” business, and whether it can be saved;
  • whether the business has been arrested;
  • will regular customers remain, or are they loyal to the old owner and are ready to leave for him;
  • Are there any hired workers you can’t do without?
  • what is the condition of the equipment;
  • Why is the business being sold?

Possible problems with starting a business

To Canada, which is ready to accept foreign entrepreneurs from different countries and provide the most comfortable conditions for the development of their business, many strive to get there. That’s why there are many competitors in most areas. There are other problems that you should be prepared for in advance:

  • you will not be able to register your own business if you have not received a work permit in Canada;
  • among the founders there must be at least one Canadian citizen or resident;
  • your chosen line of business may require a license;
  • you must know the language;
  • cash It may not be enough, the registration or development of the business will be delayed, and during this period, when there will be no income, you will have to spend the money that was set aside for the maintenance of the business.

The following video explains how to avoid possible problems when starting a business and not lose your money:

Conclusion

Now that you know how to open a business in Canada, your plans may well become a reality. But when planning to do business in a foreign country, assess your strength soberly. Do you have enough professionalism and experience, do you have the required financial resources? Not everything is as clear and simple as it seems at first glance. It would be nice if you analyze the supply and demand for the services you are going to offer, find out whether there is high competition in your chosen area. Remember that if the attempt fails, you will be able to sell your business in Canada.

The right decision will first go on vacation to this country for a couple of months, practice the language, communicate with compatriots, and get to know the locals better. Consider opening in Canada

Canada is a unique country in which immigrants from all over the world have the opportunity to build their business from scratch and be very successful. It doesn’t matter if you had your own business and are planning to continue it or if this is a completely new line of business for you, everyone has a chance. First of all, you need to know what forms of business registration exist in Canada. Afterwards, you need to choose the system by which you will keep your accounting and determine what taxes you will pay to the state.

If you are planning to immigrate to Canada through a business program, this information also useful for you.

Types of business registration:

Sole Proprietorship

  • There are no strict rules governing business
  • Not complicated document flow
  • Registration must be renewed upon expiration
  • It is more difficult to increase capital

This business model is suitable for almost everyone if you decide to try yourself in business and do not want to incur large costs for opening and running it. For new immigrants, this may be the best solution.

To register you need to obtain a Business License (Master Business License). If your income is lower $30,000 per year, then you do not need to register an HST number (your registration number for value added tax, issued by the tax office)

Anyone registering as a sole proprietor should remember that you are personally responsible for any actions taken on behalf of your business. In this case, you and the business act as a single whole. At your discretion, you can use your name as a business name or register a unique name for your business.

Partnership

  • Easy to open (must have a partnership agreement)
  • Not high cost registration
  • There are minor business regulations (name registration is required).
  • Full personal responsibility
  • If one of the partners has died or does not wish to continue the business, you cannot renew the registration
  • Difficult to increase capital
  • You are responsible for your partner's actions
  • You report income on your personal tax return

Corporation

  • Minimal personal risk
  • More opportunities for capital growth
  • Tax benefits possible
  • Does not require re-registration
  • Business is regulated by many regulations
  • Higher registration costs
  • More complex document flow

A corporation is a more complex form of business. There are two types of corporations: federal and provincial. To register a corporation, it will be necessary to hold a meeting of shareholders, sign the necessary forms, draw up a shareholders' agreement, select a reporting form, obtain a Certificate of Incorporation of the corporation, etc. The main difference between a corporation and other types of business registration is that you are not personally responsible for the actions of the corporation. At your choice, you can register a numbered corporation (without a specific name) or choose a unique name that will be assigned to your corporation.

Accounting department in "CanadaForMe" helps not only people interested in business immigration with opening and maintaining a business in Canada for subsequent immigration, but also provides advice to newly arrived immigrants on opening a business in Canada, what they should pay attention to, what accounting program to choose for running a business, and where is the best place to open a bank account, etc.

Our specialists will help you register and start your business.

This article will give you valuable tips on how to open a business in Canada.

Many people believe that starting a business in Canada is much more difficult than in other countries. However, this is not true. Everything is much simpler than it seems. In this country, business support is provided in the form of loans and consultations, assistance is also provided by the government of the country, and assistance is provided by representatives of various business structures. This makes the procedure for starting your own business in Canada much easier.

How to open a business in Canada

To open a business in this country, all conditions are provided. The state gives loans and provides necessary benefits. The tax system here is very loyal and is recognized as one of the softest in the world. The registration procedure itself is quite simple.

But there is one “but”. In Canada, you can open your own business only if you have been successfully doing business in your country for at least two years.

Opening a business in Canada is directly related to the goals of starting your own business:

  • expansion of an existing business;
  • immigration to the country (involves dual citizenship).

The second of the listed goals poses a greater difficulty.

At the first stage, it is necessary to select the organizational and legal form of the institution.

This stage is important because the amount of security depends on the choice of the organizational and legal type of the future enterprise (the required amount that must be in the company’s account at the time of its registration).

Less difficulties arise when opening a business in the form of a joint venture (two or more founders), a limited liability partnership or a private company.

At the second stage, documents are submitted and registration itself takes place.

A person who wants to open his own business in Canada, before submitting documents to the Ministry of Government Services, undergoes a special test aimed at determining the prospects of the desired direction. It's about about a private or joint venture. However, citizenship is not required. You just need to live in the country legally. Based on the results of such a test, it becomes possible to receive recommendations in choosing the field of activity, direction of business and organizational and legal form of the institution.

Registration occurs at the nearest Revenue Canada office in your place of residence in the case of registration of a private enterprise or partnership.

For registration you will need the following list of documents:

  • international passport;
  • apostilled civil passport;
  • visa;
  • notarized and apostilled copies of all documents that confirm the fact of ownership of the enterprise for two years in the country where you live;
  • documents that confirm the fact of your residence in the country.

Based on the results of the registration process and filling out the necessary forms, you will receive a business number. Obtaining a business number and registration itself is free. You need to pay for, in case of registering a business name, for searching trademark(free name).

Non-residents of Canada cannot register. But there are more complex shapes registrations, which are also recorded in the Ministry of Consumer and Commercial Relations.