So...
Why Canada?
Canada’s pro-business and expat-friendly environment has made the country an extremely appealing option for start-up entrepreneurs and global business titans alike. Here’s why Canada is the perfect starting point for establishing your venture or expanding your company in North America.
Your gateway to North America
A one-hour flight away from New York City, Toronto is emerging as one of the world’s premier business destinations, especially for those who are looking to get established in North America.
Ontario is one of the biggest economies in North America, with business-oriented, immigrant-friendly government policies in place aimed at encouraging and attracting economic growth.
Toronto has been recognized by the Economist as one of the top 25 best cities across the globe to live and work in for 2023. Considering Toronto’s incredible quality of life, rich array of cultural, dining, and entertainment venues, excellent public education, and world-class, social healthcare system, the city is an attractive destination for both solo entrepreneurs and families looking for a permanent home overseas.
A streamlined path to residency for entrepreneurs, executives, and investors conveys the clear message that Canada is open for business, and ready to warmly welcome immigrants.
Tax and financial advantages for businesses
Canada offers a number of generous financial advantages for businesses, including tax breaks, grants, and subsidies.
Canadian-controlled private corporations (CCPCs), the corporate tax rate is just 15%, one of the lowest in the world. Government officials have made it a priority to steadily lower corporate tax rates in order to stimulate economic growth (note that the tax rate in 2010 was 18% in 2010, and has been only decreasing since then!)
In order to qualify as a CCPC, your business will need to meet the following requirements:
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Be a private corporation, which means its shares cannot be traded on a stock exchange;
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Be a Canadian corporation, which means it is either incorporated in Canada or a held by resident in Canada;
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Not controlled directly or indirectly by one or more non-residents of Canada or one or more public corporations, or a combination of both.
A corporation that is controlled by non-resident of Canada will need to seek a Canadian enquiry partner and/or a Canadian residency via business visa programs.
Funding R&D for start-ups with Canadian government grants and subsidies
The Scientific Research & Experimental Development (SR&ED) is a Canadian government tax credit program aimed at encouraging SMEs, startups, corporations, partnerships, and individuals to conduct R&D that leads to new, improved, or technologically advanced products, processes, devices, and materials.
Canada’s SR&ED program is one of the world’s most generous R&D tax incentive programs. Every year, over 20,000 claimants receive in excess of CDN $3 Billion from the program.
Government Incentives, commonly called grants, are given by the federal or provincial government to support an applicant’s project, business development, or emergency recovery for start-ups and established businesses.
The Canadian government also offers financial support to VC funds and secured loans to businesses.
Easy immigration and route to permanent residency/citizenship
Immigrant Investor Program
The process of relocating and establishing a permanent home in Canada is significantly more streamlined than its American equivalent. Unlike the US, Canadian immigration and visa programs include a path to permanent residency, and generally the individual can’t be deported once a visa program is initiated.
For business people interested in making a long-term commitment to a new home, Canada’s visa programs are well-suited for those who are considering permanent residency or citizenship.
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The Immigrant Investor Program aims to attract experienced business investors to settle in Canada and create long-term opportunities in job creation and developing businesses.
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The Start-up Visa program
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The Start-up Visa program is open to immigrant entrepreneurs who can demonstrate potential to build a business based on an innovative idea, or using cutting-edge technology in Canada.
In order to apply for the Start-up Visa Program, the business must meet a number of requirements, including that the business is based in Canada, there are Canadian investors interested in funding the project, the proprietor speaks, reads, and writes English or French, and more.
Public listing on the TSX
CPC Program
The Capital Pool Company (“CPC”) program is a unique listing vehicle offered exclusively by the TSX Venture Exchange (the “TSXV”). Unlike a traditional initial public offering (“IPO”), the CPC program brings together investors with financial market experience and entrepreneurs whose growing enterprises need capital and public company management expertise.
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Under the CPC program, experienced directors and officers can form a CPC with no assets (other than cash) and no commercial operations, list it on the TSXV, and then raise capital afterwards. The CPC uses those funds to seek out an investment opportunity. When the CPC completes its Qualifying Transaction and acquires an operating company that meets TSXV listing requirements, its shares then continue to be traded as regular listings on the TSXV.
Uplisting from TSX.V to TSX is easy and smooth. Proprietors can also enjoy a dual listing on Nasdaq with multiple exemptions for TSX.V listed companies
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