Canada is a land of opportunity for entrepreneurs wishing to setup or expand their businesses. With its robust economy, business-friendly environment, and access to global markets, Canada offers numerous advantages for foreign investors. However, selecting the best Canadian province to setup a business is important to ensuring long-term success.
This guide explores the best Canadian provinces to set up a business, considering factors like tax rates, economic strength, workforce availability, and government incentives.
Whether you’re launching a tech startup, a manufacturing unit, or a retail chain, this article will cover the best provinces to register a business in Canada.
What are some of the Best Canadian Provinces to Setup a Business?
Some of the best provinces to set up a business in Canada are discussed below:
1. Ontario
Why Choose Ontario?
- Largest Market in Canada: Home to nearly 15 million people, Ontario provides a vast customer base.
- Economic Strength: Contributes over 37% to Canada’s GDP.
- Access to the U.S.: Ontario shares a border with key U.S. states, providing easy access to international markets.
- Tech and Financial Hub: Toronto, the capital, is North America’s third-largest tech hub and a global financial center.
Business Benefits
- Low Corporate Tax: 11.5% provincial corporate tax + 15% federal corporate tax.
- Government Support: Various grants and incentives, including the Ontario Innovation Tax Credit and Scale-Up Visa Program for startups.
- Skilled Workforce: Over 67% of Ontarians have post-secondary education, ensuring access to top talent.
Best Industries in Ontario
- Technology (AI, Fintech, SaaS)
- Financial Services
- Manufacturing & Automotive
- Healthcare & Pharmaceuticals
2. British Columbia
Why Choose British Columbia?
- Strategic Location: Vancouver is a major trade hub with direct access to Asian markets.
- Strong Economy: BC has one of Canada’s fastest-growing economies, with an emphasis on innovation.
- Quality of Life: A better standard of living and eco-friendly initiatives attract top talent.
Business Benefits
- Competitive Corporate Tax: 12% provincial corporate tax.
- Start-Up Support: Programs like the BC Tech Fund support emerging businesses.
- Tech-Driven Economy: Vancouver is a global hub for software development, gaming, and digital media.
Best Industries in British Columbia
- Technology (Blockchain, Software, Video Games)
- Green Energy & Sustainability
- Tourism & Hospitality
3. Alberta
Why Choose Alberta?
- No Provincial Sales Tax: Alberta is the only province without a PST, making it attractive for businesses.
- Rich Natural Resources: A hub for oil, gas, and renewable energy.
- Best Cities: Calgary and Edmonton rank among the best cities in Canada for business.
Business Benefits
- Lowest Corporate Tax in Canada: 8% provincial tax, the lowest in the country.
- Pro-Business Policies: Alberta has fewer regulations and government interventions.
- Affordable Real Estate: Commercial property costs are significantly lower than in Ontario or BC.
Best Businesses to Start in Alberta
- Energy & Natural Resources
- Agriculture & Agri-Food Processing
- Transportation & Logistics
- Tech Startups & AI Research
4. Quebec
Why Choose Quebec?
- Largest French-Speaking Market in North America.
- Strong Economy: Home to global companies in aerospace, AI, and biotechnology.
- Affordable Operating Costs: Business costs are up to 30% lower than in Ontario and BC.
Business Benefits
- Competitive Tax Rates: 11.5% provincial corporate tax.
- Government Incentives: Tax credits for R&D, AI, and video game development.
- Growing Startup Ecosystem: Montreal is one of the top cities in the world for AI and fintech startups.
Best Industries for Your Business in Quebec
- Artificial Intelligence & Machine Learning
- Aerospace & Defense
- Pharmaceutical & Biotech
- Video Game Development
5. Manitoba
Why Choose Manitoba?
- Stable Economy: Low business costs and steady economic growth.
- Affordable Living: Winnipeg offers one of the lowest costs of living in Canada.
- Strong Agricultural Sector: Ideal for agri-business and food processing.
Business Benefits
- Moderate Corporate Tax Rate: 12% provincial tax.
- Government Grants: Funding for small and medium enterprises through programs like the Manitoba Innovation Growth Program.
- Low Labor Costs: Wages are lower compared to Ontario and BC, reducing operational expenses.
Best Industries in Manitoba
- Agriculture & Food Processing
- Manufacturing
- Renewable Energy
- Retail & Wholesale Trade
Which Province is Best for Your Business?
Choosing the best province depends on your business goals.
Here’s a quick comparison on the best provinces to setup a business in Canada:
Province | Key Advantages | Best Industries |
Ontario | Largest economy, skilled workforce, tech hub | Tech, finance, manufacturing |
British Columbia | Gateway to Asia, strong startup culture | Tech, film, tourism |
Alberta | No PST, low corporate tax | Energy, AI, agriculture |
Quebec | Innovation incentives, affordable costs | AI, aerospace, biotech |
Manitoba | Low costs, government grants | Agri-business, manufacturing |
If you’re a foreign entrepreneur looking to establish your business in Canada, consider factors like taxation, economic growth, government support, and talent availability. Each province has its unique advantages, and the right choice depends on your industry and long-term goals.
Conclusion
Canada provides various business opportunities for international entrepreneurs seeking to establish a business. Each province presents unique advantages, from Ontario’s vast market and skilled workforce to Alberta’s low tax environment and rich natural resources. Your decision should align with your commercial ambition, industry focus, and long-term vision.
If you want to choose the best province to grow your business in Canada, you can get in touch with our incorporation experts from OnDemand International. Our experts will get in touch with you and help you choose the best Canadian province to set up a business.
FAQ’s
Yes, non-residents can establish a business in Canada. While each province has its own regulations, provinces like Ontario and British Columbia allow 100% foreign ownership without requiring a local director.
No, you can own and operate a company in Canada without residing there. Remote ownership is possible, but engaging local management or appointing an agent for service may be required, depending on the province.
Canada’s diverse economy offers opportunities across numerous sectors. Prominent industries include:
- Technology and Innovation: Particularly strong in provinces like Ontario and British Columbia.
- Natural Resources and Energy: Notably in Alberta.
- Agriculture and Agri-Food Processing: Thriving in provinces like Manitoba.
Yes, Canada offers various tax incentives to attract foreign investment. These include competitive corporate tax rates, research and development (R&D) tax credits, and industry-specific incentives.
