If you are considering starting a business, many things can affect the success of your new venture. One of these aspects is the location or, more precisely, the country you plan to go.
For quite some time, American entrepreneurs began to think about opening a business north of the border in Canada. However, is Canada a better business environment than the United States, or is their decision based solely on diversification?
The answer is far from clear, but it is essential to assess the facts to make a more informed decision. You should consider some of the advantages of moving your business to Canada over moving to the United States.
Canada’s Ever-Growing Economy
Canada’s natural resources provide a positive aspect of the Canadian economy. Canadian oil and natural gas provided $ 108 billion to Canada’s GDP in 2018, supported nearly 530,000 jobs nationwide in 2017, and provided the government with average annual revenue of $ 8 billion for the period 2016-2018.
With an ever-growing economy, Canada supports international business owners. Many of these business owners and business immigrants wonder if they can move their companies to Canada, and the fears that come with moving to a new country that may exist in their minds when making the decision.
Below are some of the things that may attract entrepreneurs worldwide to take advantage of the opportunities that Canada has to offer them.
Comparatively Lower Costs Of Expansion Compared To The United States
The United States and Canada are two countries with few similarities and a few significant differences. According to a 2016 KPMG report, the cost of doing business in Canada for American companies is 14.6% lower than in the United States.Â
It gives Canada a competitive advantage over the United States and other industrialized countries such as the United Kingdom, Australia, Germany, and Japan.
Low Corporate Taxes
Canada is constantly lowering taxes. This country is focused on its citizens and tries to provide them with the best living conditions. The same applies to the business world. One of the Canadian tax programs allows you to return up to 35 percent of your initial investment.
Second, federal taxes cover other expenses, such as health care and education. It is one of the main reasons for moving your business to Canada. In addition to being a businessman, you are also a person who needs education and good health. Canada will ensure you have both without paying a lot of money.
Access To The US And Mexico Markets Through NAFTA
Canada also benefits from trade agreements with many other countries. Thanks to the new agreement between Canada-United States-Mexico, Canada has access to the US and Mexican markets, which gives it the benefits of Canadian business.
Friendly Immigration Policies
Canada provides immigrants with an easy, welcoming, and workable policy. The immigration system is based on merit and prefers qualified immigrants and diploma holders.Â
If you are interested to see if you are eligible, you might want to use a Canadian immigration points calculator. This tool will give you the answer within a few minutes.
Highly Skilled Workforce
First, so many educated people together make up a valuable workforce. By moving your business to Canada, you should have the opportunity to choose among the best Canadian entrepreneurs and technology innovators.Â
Second, with so many full-time college students per year, Canada has the highest rate of post-secondary education compared to other OECD countries. It is a staggering 67 percent.
Canada also cares very much about its young people and is proud of them. This country invests a lot of money in youth programs and general support for its youth. In return, they show their gratitude by being the best at what they do. It might be a good reason for people worldwide to move or start a business in Canada.Â
Moreover, some reports show that Canadian millennials have high levels of employment and homeownership. These studies were conducted in comparison with other US countries.
Diversity
Canada is considered one of the most diverse countries in the world. How does this factor affect your company? Well, when you open a company in Canada, you get to choose from a diverse pool of talent.Â
Diversity means that foreigners are usually more than happy to try their luck in the Canadian business arena. Everyone should have an equal chance of success. In Canada, the main thing is talent.
Moreover, women entrepreneurs get a chance to shine in Canada. 12.5% of partners in the most profitable companies in Canada are women.Â
It is one of the main factors if you are a woman trying to succeed in a male-dominated business world. Also, if you are a person who supports gender equality, it might be a good reason to move your business to Canada.
Doing Business Is Straightforward
Canada is rated 22nd out of 190 countries in the World Bank’s Ease of Doing Business rankings, and a breakdown of these statistics puts Canada in third place for ease of starting a business and seventh place for ease of getting a loan. Other factors also make it easier to do business in Canada.
Canada guarantees fundamental human rights and additional freedoms. Business immigrants can take advantage of free health care and free secondary education for their children if they choose Canada for their company’s international expansion.
Canadian Market VS The US One
The US is known to have an open market. However, in the open market, those who pay business income tax are not forced to get corporations out of trouble. It only shows the extent of the US government’s intervention in the economy. In the US, the government has the right to intervene at any time, and this should worry entrepreneurs.
Canada provides a more accessible market than the United States, given the available data, and is much more friendly to entrepreneurs. Since the 1980s, Canada has taken small steps towards a free market.Â
The corporate tax rate in Canada is one of the lowest among the G8 countries. Spending cuts in Canada in the 1990s were also attributed to 15 years of rapid economic growth, and they ended when the entire world was dragged into the US recession.
An open market is essential for business. It brings innovation and sets in motion actual products and services. Also, it makes business owners “game-changers,” and it brings a beautiful sense of freedom appreciated by entrepreneurs.
To Sum Up
It might be noticeable that more and more companies think of Canada as the best place to live and work. However, both the US and Canada are fantastic environments for immigrant-owned startups. Therefore, to say that one is better than the other is a matter of perception.
Depending on the particular business you are venturing into, there are areas where the US would be most ideal, and there are areas where Canada would be most suitable.Â
It is worth noting that the two neighboring countries treat each business and immigration process individually. Therefore, what might work for applicant A may not work for applicant B.
The best way to approach this process is to work with immigration and business experts to help determine the most appropriate one, based on your specific plan, preferences, budget, and other factors.
