Canada- Economy and Opportunity

Canada Showcase

Next global destination for your business

Canada is projected to have steady growth by OECD. The country earned its top spot due to its trade freedom, investor protection, low corruption, minimal red tape and low corporate tax rates.

Canada Economy

The economy of Canada is a highly developed mixed economy, with the world's eighth-largest economy as
of 2022, and a nominal GDP of approximately US$2.221 trillion. It is one of the world's largest trading nation, with a highly globalized economy.

Foreign Direct Investments

The stock of foreign direct investment in Canada grew 6.0% (+$71.6 billion), reaching $1,263.9 billion at the end of 2022. The industry with the largest foreign direct investment in Canada in 2022 was the management of companies and enterprises at 394.2 billion Canadian dollars.

Opportunity Mapping

Canada is the largest foreign supplier of energy , including oil, natural gas, and electric power, and a top source of US uranium imports. Canada provides opportunity to work in different area such as Electrical Engineer, Aerospace Engineer, Software Engineer, Human Resources Manager, Web Developer.

India in Canada

Canada and India have longstanding bilateral relations built upon shared traditions of democracy, pluralism and strong interpersonal connections. A priority market for Canada, in 2022, India was Canada’s 9th largest trading partner. India will be a key partner as Canada strengthens its economic links to the Indo-Pacific under a new, comprehensive strategy for the region. Indian companies like Tata Consultancy Services, Aditya Birla Group, Infosys and Wipro have significant presence in Canada.

Canada is a diversified country that is an excellent place to do business, with a variety of corporate structures. Small enterprises to major multinational corporations operate in Canada.

Limited Liability Partnership

LLPs protect all partners from liability and in most provinces, LLPs are only available in high-risk industries, such as law, accounting, architecture, or medical care. Provincial legislation governs LLPs, and the protection differs based on your province.

Federal Corporation

Federal corporations are incorporated pursuant to the Canada Business Corporations Act(CBCA). They have the right to carry on business anywhere in Canada under their registered corporate name.

Provincial Corporation

Provincial corporations are incorporated pursuant to the applicable provincial corporate statute. They only have the right to carry on business within the Province or Territory of incorporation.

Foreign Entities in Canada

In Canada, corporations can be formed with no capitalrequirements and as few as one director and one shareholder, with a minimum of 25% of directors being Canadian residents. The corporation must maintain a registered office in the province of Canada indicated in its articles at all times. Foreign companies seeking to operate in Canada can set up branches and subsidiaries.

The taxation system in Canada is based on the type of income earned, the status of the corporation, and the Canadian province or territory in which the income is earned, giving its investors options to operate.

Corporate Tax

The general federal rate of tax on corporations is 38%. A 10% rebate applies to the extent the income has been earned in a Canadian province, bringing the federal rate down to 28%. It is further reduced by a general rate reduction of 13%, resulting in a general rate of 15%.

Dividend Tax

When a shareholder receives a dividend, they must include it in their tax return. Dividends taxes have their own rate at federal and provincial leval. The tax component of qualified dividends is taxed at 15.0198 percent, while the tax portion of non-eligible dividends is taxed at 9.031%.

GST

The GST is applicable on taxable sales, leases, or other supplies in Canada. It is determined on the basis of place of supply. The rate depends on the province or territory. Currently the rates vary from 5% to 15%.

Taxation of Non Resident entities

Canada's tax treaties generally provide that the business profits of a non-resident corporation are not subject to
Canadian tax unless the non-resident corporation carries on business in Canada through a Permanent Establishment (PE) situated in Canada and the business profits are attributed to that PE. Canadian financial institutions and other payers have to withhold non-resident tax at a rate of
25% on Dividend, Interest earned from Canadian-source income.

Canada is a vast landmass whose transportation, infrastructure and physical location makes it one of the most accessible country in the world, and well-positioned to serve foreign business or entrepreneurs.

Branch Office

A branch office is an extension of the parent corporation’s business. Branches are registered provincially in each
Province in which the foreign business proposes to operate. It requires Canadian address and a Canadian resident agent for service.

Subsidiary Company

A subsidiary is a separate corporation which is controlled by the parent corporation. It allows for a division of liability between the Canadian and the foreign operation. It follows separate business opportunities and initiate
its own contractual arrangements.

Joint Venture

JV's are governed by the contracts arrived at between private parties. The terms of collaboration, respective contributions and the arrangements regarding management and sharing of profits are typically set out in the contract.

Canada Business

Canada provides various Business immigration options to its investors who want to start business in Canada such as Canadian entrepreneurs can expand businesses, obtain permanent residency after one year of working experience, through ICT Work Permits. Provincial Nominee Programs (PNP) this immigration pathway is available in all Canadian provinces, most foreign entrepreneurs use the Entrepreneur streams of British Columbia PNP and Ontario PNP. Canada provides various Business immigration options to its investors who want to start business in Canada such as Canadian entrepreneurs can expand businesses, obtain permanent residency after one year of working experience, through ICT Work Permits. Provincial Nominee Programs (PNP) this immigration pathway is available in all Canadian provinces, most foreign entrepreneurs use the Entrepreneur streams