Top 8 Reasons to Setup a Company in Canada as a Foreigner

Canada has been attractive for a long time to people who are trying to build an improved life for themselves and their families. The country is renowned for its stability in the economy and politics as well as business-friendly incentives.

What makes North America even more stunning is its warm and open manner toward immigrants. The government of Canada has put many immigration and visa programs in place, which allow foreigners to move in and get the most from their time in Canada.

If you’re thinking of making the move to Canada, you will be overjoyed to learn that there are many options and friendly people who can make your Canadian stay worthwhile. In this article, we will be going to witness, the top reasons to setup a company in Canada.

8 Reasons to Setup a Company in Canada

Down below we’ve listed a few of the most common reasons to set up a company in Canada.

1. Advancements in Technology 

• One of the most important reasons to setup a company in Canada is the advancements in technology that have occurred in the country. 
• Canada has a long tradition of technological innovation, particularly, the MaRS Discovery District, which is the most prominent business acceleration centre across the globe.
• It provides financial and intellectual aid in the creation of high-potential business businesses. 
• Between 2008 and 2015, more than 1,000 new businesses were created in the District, generating an annual income that was 1.3 billion dollars. 
• Technological giants like Microsoft, IBM, Cisco, Google, and Facebook have their divisions in Toronto.

2. Economic Stability

• Canada’s economy is generally regarded as one of the most stable in the world.
• A stable economy reduces risks for entrepreneurs, ensuring that businesses can grow without worrying about sudden economic upheavals. 
• With a GDP of over CAD 2.14 trillion (as of 2023), Canada is the 10th largest economy in the world. 
• The nation draws in foreign investors with its stable fiscal policies, robust banking system, and low rates of inflation. 

3. Access to Global Markets

• Another one of the reasons to set up a company in Canada is that it provides access to global markets. Canada is strategically positioned to offer unparalleled access to international markets. 
• Through its various trade agreements like CUSMA (Canada-United States-Mexico Agreement), CETA (Comprehensive Economic and Trade Agreement) with the EU, and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), businesses in Canada enjoy tariff-free or reduced-cost trade with over 50 countries. 
• As a member of the G7, Canada has a combined market access of nearly 1.5 billion consumers worldwide.

If your business involves trade or export, setting up in Canada provides a gateway to massive markets with reduced costs and fewer restrictions.

4. Favorable Tax Benefits

• Canada offers competitive tax rates for businesses. Federal corporate tax rates are as low as 15%, and small businesses enjoy additional deductions, making it easier for startups and SMEs to thrive. 
• Moreover, Canada offers tax incentives for innovation, such as the Scientific Research and Experimental Development (SR&ED) Program, which provides tax credits to businesses investing in R&D. Lower tax rates and incentives boost profitability and permit firms to reinvest in their growth.

5. Skilled Workforce

Canada always is among the top nations in the way their educational systems are evaluated.

Canada is the world’s leader in the following areas of education:

• The percentage of employees with a degree from a university;
• The proportion of people with high-value skills
• The amount of knowledge students have is a testament to the depth of knowledge they receive in Canada.

Toronto is a popular destination for skilled immigrants from different countries which makes Toronto the ideal location for establishing an innovative business.

6. Quality of Life

• Canada is globally renowned for its high quality of life. It ranks in the top 10 countries for health, education, and safety. This reputation makes Canada an attractive destination for entrepreneurs and their families. 
• Establishing your business in a country with excellent living standards not only boosts personal satisfaction but also helps attract and retain top-tier employees.

7. Ease of Conducting Business 

• Another one of the reasons to setup a company in Canada is the ease with which business can be conducted in the nation. 
• According to the World Bank, experts consider Canada the second-best country for starting an enterprise in the G20 nations, and the sixth-best nation around the globe.
• Canada is particularly high on the list in terms of the ease of getting loans from banks and the guarantee of minor investors’ rights. 
• The amount of money needed to establish a business in Canada will be around 75% less than the amount needed in the USA.

8. Industry Diversity

The economy of Canada is varied and includes prosperous sectors like:

• Technology: Cities like Toronto and Vancouver are growing tech hubs.
• Agriculture and Agribusiness: Canada is a leading exporter of agricultural products.
• Natural Resources: Rich in oil, gas, and minerals, Canada is a hotspot for energy businesses.
• Tourism and Hospitality: The sector contributes billions to the Canadian economy annually.