How to Relocate Your Business to Canada in 2024-25: Complete Guide

In this article, we have discuss about how to relocate your business to Canada in 2024-25. Read the complete article to know more about the procedure and reasons for relocating your business to Canada.

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    Relocate Your Business to Canada

    Relocating your business to Canada provides a unique chance to benefit from one of the world’s most stable and wealthy economies. Canada is an appealing place for businesses looking to grow and expand due to its strategic position, broad market, and strong business support. However, the process of expanding a firm worldwide may be complicated and intimidating. Recognizing the legal, financial, and logistical factors is critical to a smooth transfer. In this article, we will guide you through the essential steps and considerations for successfully relocating your company to Canada, ensuring a smooth and efficient move. Are you ready to explore the potential of expanding your business into the Great White North? Let’s dive in. Our team at OnDemand International will help you to relocate your existing company to Canada.

    Steps to Relocate your Business to Canada

    You should give the Intra-Company Transfer (ICT) program some thought if you intend to set up business in Canada and get work permits for yourself and your team members. With the help of this program, international businesses can set up business in Canada and send their employees—managers, executives, and workers with particular skills, for example—to work there. Both the applicant and the growing firm must meet a number of standards in order to be eligible for this program; they will be covered in more detail below. 

    Check your current company is eligible to relocate under CIT program

    Not every business owner has the ability to move their operations to Canada. To take advantage of the ICT program’s benefits, both the chosen candidates and growing businesses must meet a number of standards.

    Requirements for International Companies:

    1. Your home business has to be fully functional, actively making sales of products or services, hiring employees, obtaining clients, and making money.
    2. While there isn’t a minimum amount needed to run a business in Canada, your organization has to demonstrate that it has enough cash on hand to support operations there. It is recommended to allocate at least CAD $100,000 to sustain the business in the first year.
    3. The company must demonstrate adequate revenue to support its expansion into Canada. While no minimum revenue threshold is specified, it is advisable to show gross sales of at least CAD $300,000. If your company’s revenue is below this, consult a lawyer to strategically plan your expansion.
    4. If your organization is growing in Canada, it should have good commercial reasons to do so, such as increasing customer service in North America or exporting goods from Canada.
    5. The business has to have been up and running for a minimum of a year. A longer operational history can strengthen your application.

    Requirements for International Applicants:

    • You have to be employed by your present employer as an executive, senior management, or specialist knowledge worker.
    • You must provide proof that, during the previous three years, you worked in the appropriate role for your home firm for at least a year.
    • You have to provide proof that you are moving to Canada for a comparable position.

    The next stage for your business is to register its presence in Canada if it satisfies the requirements for qualifying for the ICT program.

    Set up your company in Canada

    When setting up your business in Canada, it is crucial to consider the corporate ownership structure of your Canadian entity. According to the legislation, your Canadian corporation and your current home business must continue to have a parent-subsidiary or affiliate connection. This implies that your Canadian firm has to be listed with your current company as an associate, parent, or subsidiary.

    Ownership Structures:

    1. Subsidiary Relationship: This exists when your foreign company owns and controls the Canadian company.
    2. Parent Relationship: This is established when your Canadian company owns and controls the foreign company.
    3. Affiliate Relationship: This is formed when the same individuals or group of individuals who own and control your foreign company also own and control the Canadian company.

    Once the ownership structure of your Canadian entity is clearly defined, the next step is to decide on the location of your first corporate office in Canada. If you opt to register a federal company in Canada, you are required to have at least one Canadian director. However, some provinces do not require a Canadian director for establishing a business.

    Apply for the Intra-Company Transfer program

    After registering your business in Canada, you can apply for a work visa so that you can begin operations inside your recently formed Canadian firm. You must gather and show a variety of documentation to Canadian immigration agents in order to prove your eligibility for the ICT program in order to apply for a work visa. Make sure the following papers are included:

    Foreign Company Documents:

    • Company Registration Documents: Provide proof of active company participation (website, marketing materials, tax filings, licenses/permits, commercial leasing agreements, employee remittance payments, etc.), ownership documentation, and the year of formation (must be at least a year old).

    Transfer Letter:

    • Letter from the Home Company: Explain the position that the applicant will take up in Canada, the reason for their presence in Canada, and their present role (managerial, specialist knowledge worker, or executive).

    The job history of the applicant with the company:

    • Employment Contract: Pay Stubs and employment records; personal tax returns containing employment data; evidence of compensation or dividend payments (in the case of business owners); organizational structure of the company; business cards; letters of recommendation; etc.

    Company’s Financial Documents:

    • Tax Reports: Corporate bank statements demonstrating adequate liquid capital for expansion; tax filings from the company displaying gross revenues and sales reports.

    Canadian Company Documents:

    • Registration Documents: The company’s articles of incorporation, any licenses or permits, a shareholder agreement or share certificate attesting to the ownership of the business, any leasing agreements, any financial records, and any marketing collateral (such as a website or other promotional materials, if any) are all examples of proof of ownership.

    First ICT Transfer Requirements:

    • Business Plan: Give a thorough justification for the growth, the suggested business ventures, the investment amount, the anticipated cash flow, and the recruiting strategy.

    Applicant’s Personal Documents:

    • Personal Information: Enclose the applicant’s curriculum vitae, certifications, licenses, letters of recommendation, and proof of further education or experience. Provide proof of your links to your home country as well, such as assets, family members who are residents, travel records, police clearances, test results, and other relevant documentation.

    Operate your company

    The processing time for your Canadian work permit application typically ranges from one to four months. Depending on your citizenship, you will receive a work visa to enter Canada when your work permit application is approved. When you arrive in Canada, the work permit paperwork itself will be issued at the port of entry.

    Extending Your ICT Work Permit:

    You have to provide proof to Canadian immigration officials that you have successfully established and are actively operating your business in Canada in order to have your ICT work visa extended.

    1. Business Operations in Canada:
    You have to show that your Canadian firm is legitimate and actively providing products or services, either to domestic or international clients, by the time you request for an extension. While profitability is not a prerequisite, your company has to be sustainable and make enough money to pay for staff and other operating expenses.

    2. Physical Presence:
    Your company must maintain a physical presence in Canada and cannot be operated solely on a virtual basis. Despite the prevalence of virtual or remote operations in the post-pandemic era, your company is still required to have commercial premises in Canada, which can include shared or co-working spaces, where you and your employees can work.

    3. Employees in Canada:
    The officer will determine if your business employs people in Canada. By the time you ask for an extension, you have to show that your company employs at least one person locally, even if your employees are distant. You also need to demonstrate that your leadership is still vital to your team in Canada and that your firm is operational, demonstrating the continued importance of your presence in the country.

    4. Continuation of Foreign Operations:
    Your foreign firm must stay operational in your nation of origin and retain the same ownership structure as stated in your original work visa application.

    Why you relocate your business to Canada

    Economic Stability and Growth

    Canada’s economy is among the strongest and most stable in the world. Strong financial institutions, low rates of inflation, and a high quality of living make up the favorable economic climate for the expansion and sustainability of businesses.  The country’s GDP growth is consistently positive, reflecting a healthy economic climate.

    Access to Global Markets

    Thanks to the USMCA deal, firms may easily access the North American market, which includes both the United States and Mexico, thanks to Canada’s strategic location. Additionally, Canada has numerous trade agreements with countries around the world, facilitating international trade and export opportunities.

    Skilled Workforce

    Canada is home to a highly educated and skilled workforce. The country invests heavily in education and vocational training, ensuring a steady supply of qualified professionals across various industries. This talent pool can drive innovation and enhance productivity within your company.

    Favorable Business Environment

    Canada offers a business-friendly environment with competitive tax rates and government incentives for various industries. The country ranks high in ease of doing business, providing efficient regulatory frameworks and support for entrepreneurs and businesses.

    Innovation and Technology

    Canada is a leader in innovation, particularly in technology, artificial intelligence, and research and development. The government supports innovation through grants, tax credits, and funding programs, fostering a culture of creativity and technological advancement.

    Quality of Life

    Canada consistently ranks high in quality of life indices due to its excellent healthcare system, safe cities, and diverse cultural environment. A high quality of life can attract and retain top talent, contributing to the overall success of your business.

    Immigration Policies

    Canada’s progressive immigration policies make it relatively straightforward for businesses to bring in skilled workers and executives from abroad. Programs such as the Intra-Company Transfer (ICT) and Start-Up Visa provide pathways for businesses to establish operations and grow their presence in Canada.

    Political Stability

    Canada’s political landscape is stable, with a democratic system that supports business development and economic growth. The country’s strong legal system protects intellectual property rights and enforces contracts, providing a secure environment for businesses.

    Sustainable Development

    Companies that place a high priority on sustainability stand to gain from the nation’s green efforts and encouragement of eco-friendly behavior.

    Diverse Market Opportunities

    Canada’s diverse and multicultural population offers a wide range of market opportunities. Businesses can cater to various demographic segments and tap into niche markets, enhancing their growth potential.

    Conclusion

    Although moving your business to Canada requires careful preparation and compliance with regulations, there are significant potential benefits. By understanding and meeting the criteria for programs such as the Intra-Company Transfer (ICT), you can navigate the complexities of establishing a presence in Canada. Ensuring your business meets operational, financial, and structural requirements is crucial for a successful transition. Once established, Canada offers a stable and thriving economic environment, access to global markets, and a skilled workforce, all of which are conducive to business growth. Additionally, the country’s supportive immigration policies, political stability, and commitment to innovation and sustainability create an ideal setting for business expansion. By thoroughly preparing and leveraging the available resources, your company can benefit significantly from relocating to Canada, positioning itself for long-term success in a dynamic and welcoming market.

    For more information, contact OnDemand International’s lawyers. or you can book a free virtual meeting with our executive for futher discussion