The economy of Canada is the tenth-largest in the world. It is a highly globalized economy and is ranked in the Top 10 trading nations in the world. The economy is quite stable making it an attractive option for businesses looking to expand internationally. The country also offers a favorable business climate with low tax rates; deductions to small businesses; is home to a highly-skilled workforce and can provide access to both US as well as Latin American markets.
If you are planning to start your own business in Canada then we suggest few steps which will simplify the whole process:
Develop a Business Plan
Carry out a conclusive procedure to develop a business plan:
- Idea – Select a business idea by identifying the demand of the local market by way of research.
- Location – Narrow down a preferred location based on your analysis to ensure greater reach to your target customers.
- Business Structure – Select the most appropriate business structure. There are various structures possible however a corporation is the most popular choice.
Shortlist Business Names
It is important to shortlist at least three proposed names for your business. For a corporate name, it is recommended that you choose a name that both accurately describes your business and is distinct to the chances of the proposed name being approved.
Local Office Address
A local registered office address is mandatory to set up a company in Canada. Based on your requirements, you can opt for a physical office space or even a virtual office address.
Documents required
The following documents are usually required at the time of incorporating a company:
- For Individual shareholders and Directors – Copy of Passport/PAN Card/Aadhaar Card/SSN/Any other ID and copy of utility bill.
- For Corporate shareholders – Details of Authorized person, Shareholding Pattern, Copy of Certificate of Incorporation, Articles of Incorporation, Memorandum of Association and PAN Card/any other ID.
Company Formation
Once all the above-mentioned steps have been completed, apply for name reservation, company formation, and obtain a business number. You will be required to pay the required government fees.
Apply for relevant licenses/registrations
After the company is formed, apply for other registrations such as Tax Registration, GST/HST, Import-Export Number, Payroll registration, etc. depending on your company’s requirements and pay the required government fees. There may be certain business activity-specific licenses/registrations that may also be required.
Bank Account opening
The last step is to open a bank account. In some cases, a bank account may be opened remotely without the shareholders/directors traveling to Canada. However, most banks require the physical presence of the company’s directors in Canada as part of their due diligence process.
At this point, your company is all set to do business in Canada!
