BUSINESS IN CANADA.
Business immigration to Canada in 2018 & ndash; this is one of the most reliable ways for Russians, Ukrainians and other foreigners to move permanently to a prosperous country with good prospects in the future to formalize Canadian citizenship. By analogy with most developed countries of the world, the Canadian government is interested in attracting foreign investment and gladly accepts experienced foreign businessmen who are able to create new jobs in Canada and benefit the local economy.
Canada's main trading partner & ndash; this is the US, where about three-quarters of all Canadian exports go, including a huge amount of oil and gas resources. By the way, Canada holds the 3rd place in the world in terms of oil reserves. High level of technology development, economic and financial stability, efficient tax system, fair courts & ndash; this is not a complete list of advantages for doing business in Canada.
The country has a powerful industry and a developed service sector, a low level of crime and corruption, an ideal infrastructure. Canadian universities provide quality education and are valued all over the world, therefore the workforce is very qualified. Flexible legislation, a vast territory, two official languages (English, French) and many other factors allow you to choose the most suitable place for immigration to Canada in order to open a business.
How to open a business in Canada.
It's not a secret for anyone that doing business & ndash; this is a rather risky undertaking, especially when it comes to opening a business abroad, in this case in Canada. It takes a lot of important decisions, 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 to obtain 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 provides for certain requirements. In the main it concerns the experience and qualifications of the foreigner, the amount of assets and the innovative component of the business.
Types of business visas to Canada.
Immigrant Investor Venture Capital Pilot Program.
The program was launched in 2010, but immediately note that as of early 2018, new applications for participation are temporarily not accepted. Periodically, the government opens access. Basically, when the Office of Citizenship and Immigration Canada justifies the need for additional foreign investment. You can track the status of the program here.
The sum of assets is not less than 10 million Canadian dollars, which is equivalent to 7.6 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 the financial resources received in the inheritance, as well as the value of real estate used as the main residence. All this is checked very carefully. To participate in the program you need to be ready to invest at least $ 2 million Canadian dollars in a special venture fund for up to 15 years without any guarantees of return and income.
The second mandatory condition concerns the possession of one of the official languages & ndash; French or English, which must be confirmed by an international certificate or passing of testing. In addition, a foreigner is required to have a minimum of one year of education in a higher educational institution, which corresponds to Canadian standards.
The program of business immigration to Canada, designed to launch promising innovative ideas that can compete in the market, bring profit and create jobs. For a visa, up to 5 foreign entrepreneurs can be counted simultaneously, provided that they hold at least 10% of the company's capital for each and more than 50% in total.
An official letter from one of the approved Canadian organizations with a guarantee of supporting the business idea. Here is a link to a full list of such institutions. In some cases, you need to confirm the availability of funds in the 75 or 200 thousand Canadian dollars.
Additional conditions apply to good language skills (English, French) and proof of financial security for living in Canada. In 2018, for a businessman, the amount is 12.5 thousand Canadian dollars. For two people, for example, with immigration with his wife & ndash; 15.5 thousand.
Based on a number of criteria, such as experience, education, age, language skills and the ability to adapt in Canada, foreigners can apply for a business visa as self-employed persons. This applies mainly to cultural workers, sports and entrepreneurs in the field of farming. Prerequisites & ndash; this is sufficient financial security, experience of professional work for at least 2 years, medical examination and lack of criminal record.
For more information on the programs of business immigration to Canada and requirements for foreigners, read on the official government portal & ndash; cic.gc.ca. To start a business in the Canadian province of Quebec, visit the site - immigration-quebec.gouv.qc.ca.
Procedure for registering a business (company) in Canada.
In the Doing Business 2018 report from 190 countries, Canada is ranked 18th in ease of doing business. This is an aggregate measure based on a comparison of a number of criteria. What is noteworthy by the very procedure of creating a business the country is on the 2nd position, and on connection to the power supply system by 105. In many respects, due to this, Canada is not in the top ten, but the bureaucratic procedure of registering the company in Canadian instances is minimized. Consider the main stages of the example of the city of Toronto.
Registration and submission of documents to the Ministry of Industry of Canada. This is done online within a day, and after 5 days the company is assigned a special business number. The cost is 200 Canadian dollars. A special registration form is compulsorily completed, a memorandum of association is also sent, information about the board of directors and the location of the company. To reserve a unique company name, an additional fee is charged & ndash; 21.47 dollars.
After the registration of a new company, information about this is sent to the Canada Revenue Agency, where during the day the corporate income tax number is assigned. You can find out about this on the official website of the Ministry of Industry of Canada.
In the case of a turnover of more than 30,000 Canadian dollars a quarter, it is required to register with the Revenue Agency of the Canadian Revenue Agency as a VAT payer (sales tax). The procedure takes less than 24 hours, is carried out through a special website and is absolutely free.
Of course, buying a ready business in Canada or registering a new company takes time, has its own characteristics and requires expert advice. Depending on the province and the direction of activity, additional conditions may arise, for example, registration of a license or a special permit. Each case is purely individual.
Forms of ownership for the company in Canada.
Successful business in Canada by Russians, Ukrainians, Byelorussians and any other entrepreneurs from abroad is impossible without choosing the optimal and affordable form of ownership for the newly established company. There are 4 main types of Canadian business structures & ndash; individual entrepreneurship, partnership, corporation and cooperative. Let us dwell on the most popular ones.
Individual entrepreneur . Means the sole ownership of the company and full liability for the obligations of all personal property. Profit from professional activities in full belongs to the owner. The easiest and least expensive way to open and do business in Canada. There is access to some tax benefits. Normative and legal requirements are very limited.
The corporation. Registration is carried out at the federal or provincial level, if the company's activities do not go beyond the boundaries of a particular province. As a rule, the responsibility of shareholders is limited to deposits. A more labor-intensive and organizationally complex type of opening and doing business in Canada. To resolve all legislative requirements, 100% will need the help of auditors, lawyers, accountants and other Canadian specialists.
To change the form of ownership of an existing business in Canada, it is required to close the company, and then open a new one.
Taxes in Canada in 2018.
According to international experts, Canada has the lowest tax burden on business among all G7 countries. Transparent taxation system and options for fiscal optimization create the most favorable conditions for the implementation of entrepreneurial activities in this country.
For example, taxes on business in the United States have a much more complex and voluminous structure. What is only worth the cumulative corporate tax rate of 38.9%. For comparison, in Canada, this tax in pure form is only 15% at the federal level and 11-16% at the provincial level.
In Canada, there is a multilevel taxation system & ndash; federal, provincial and territorial. Therefore, the overall tax rates in each province may differ, and much depends on the type and scale of the activity. For example, small business in Canada pays much less. In any case, the help of tax advisers will not hurt.
Rates of major taxes in Canada in 2018.
Corporate income tax. Base federal rate & ndash; 38%, and after a general decline, & ndash; 15%. Provincial rates, depending on the province, range from 11% (British Columbia) to 16% (Nova Scotia, Prince Edward Island).
VAT (sales tax). Federal rate & ndash; 5%, provincial & ndash; from 7 to 10%.
Income tax & ndash; Progressive scale according to income & ndash; 15%, 20.5%, 26%, 29% and 33%. In particular, in 2018, at a rate of 15%, income is up to 46.6 thousand Canadian dollars a year, and at a rate of 33%, income over 205.8 thousand.
Canada is a very dynamic and developed country, with rich natural resources and a diversified economy. At the disposal of foreigners a lot of directions for investment and opportunities for buying a ready business. Starting from the type of activity, when choosing a region, be guided by the number of people and purchasing power, the cost of renting premises, competition and tax rates. The most promising and large cities to open a business in Canada in 2018 & ndash; Edmonton, Toronto, Winnipeg, Richmond and Vancouver.
BUSINESS IN CANADA.