Starting a Business in Canada
Following the dream to open a small business in Canada will urge one to spend a significant amount of time and effort. If one is ready for such work and embrace the challenges, it may be just as rewarding. Like any other activity starting, there are a lot of unknowns and things to learn. It is imperative to understand all alternatives and prospects in registering and managing a business to avoid costly mistakes and to focus on what is essential. The following points elaborate the core requirements for establishing a business in Canada:
Legal Status in Canada – If you wish to establish a business in Canada, you should consider several Canadian business immigration options. To apply for permanent resident status, you must demonstrate that your business plan has economic potential. In addition, you must have enough financial resources to support your endeavour and care for yourself and any family member who may accompany you.
Create a Strong Business Plan – Developing and outlining your business plan concept may be tedious and time-consuming process. As you begin to prepare for your relocation to Canada, it is good to set aside some time for market research, identify your niche market, create company goals, and thoroughly flesh out your product and/or service. When applying for a business visa to Canada, you will be asked about your comprehensive business plan and objectives. A solid business strategy is essential for obtaining a business visa in Canada. You may develop your own business plan, however, working with a professional consultant with business plan specialty can turn your business ideas or plans to a winning business plan and a consolidated financial projection created based on local regulations.
Financing Your business – Starting a new venture has inherent financial risks. One may finance the new venture by their own personal assets. Others may seek ways to secure fund to run the business. Banks are generally hesitant to make loans to startup businesses. One factor is that they do not know how dependable the company will be. Another reason is that they are concerned about the default risk. That is why most business owners rely on small-business financing. A small-business loan is proportionate to the value of your company. It also allows you to retain some control over your business or company.
Registering Your Business – Once one has obtained permanent residency, the next step is to register your company with the province or territory where your business will be based. This process varies significantly depending on where you reside and what business immigration model you pursued.
Canada’s System of Incorporation – Sole proprietorships, partnerships, and corporations are three types of business structure in Canada. Each one has benefits and disadvantages. The business plan elaborates on the best one suits your business need.
Taxes and Returns – Ensuring that you charge the necessary sales taxes for the items and/or services you provide is critical to the profitability of your business. Therefore, one should become acquainted with the Federal sales tax, the Goods and Services Tax (GST), as well as provincial taxes such as the Provincial Sales Tax (PST), Retail Sales Tax (RST), Quebec Sales Tax (QST), and Harmonized Sales Tax (HST). Besides, corporate tax filing, and payroll obligations are critical to any business. It is imperative a new business retain a professional accounting firm that offers full services to maintain all the bookkeeping, accounting, and tax submission.