Doing business in Canada is a sometimes overlooked way of entering the vast North American market. Here we look at the key benefits, challenges and regulations that apply when moving into the Canadian market.
1. The strong economic performance of Canada in recent years means that doing business in Canada usually makes good sense.
2. Benefits of doing business in Canada include the supportive business environment, a strong workforce and excellent international connections.
3. The challenges to doing business in Canada include significant regional variation, ‘red tape’ and a smaller market size.
4. It may be worth considering a Global PEO solution to ensure that your expansion into Canada proceeds as smoothly and efficiently as possible.
“A start-up mecca rivaling Silicon Valley” is how CNBC referred to Canada at the end of 2019. Indeed, Canada is consistently ranked among the top places in the world where it is the easiest for foreign investors to establish a presence and do business.
The business and general economic environment in Canada has remained strong in recent years, growing much faster than the other G7 countries since 2016. Positive output growth and a strong labor market are helping to drive both consumer and business confidence, and this positive sentiment and higher earnings are seeing household incomes and spending growing at a steady pace throughout the country. Business investment is also on an upward trend.
All this in addition to its world-class reputation and convenient location to the United States (U.S.) means that Canada is a solid option for expansion if you are looking to expand your business internationally either from the U.S. or are considering an expansion into the U.S. in the long-term.
In this guide, we are going to cover the benefits and challenges of doing business in Canada. We will also explore some of the key information you need to know before you pursue an international expansion into Canada and look at how a Canada PEO might be able to help you.
Benefits of Doing Business in Canada
There are several benefits associated with doing business in Canada, and these have attracted major players like Google, Facebook, and Airbnb to the market. Here is a quick look at some of those which stand out:
Challenges of Doing Business in Canada
While there are several valuable benefits, it is important to weigh up the challenges of doing business in Canada as well:
Important Information for Doing Business in Canada
Having weighed up the pros and cons of expanding into and doing business in Canada and decided that it is the right course of action for your business, there are key bits of information that you should know about.
While it simply is not possible to cover all bases in this post, here are some of the most important pieces of information that you will need to know about.
Work with a Canada PEO
Establishing a subsidiary in Canada to grow your business and build operations is a time-consuming process that is both complex and potentially expensive. The country’s provincial makeup in addition to strong labor and thorough tax laws that mandate exceptional attention to detail when doing business in Canada, and any mistakes you make—no matter how innocent—could be very expensive.
If you are sure that doing business in Canada is the right move for your organization, however, there are other options open to you. You could work with a global professional employer organization (PEO) like Horizons who makes it simple and painless to expand into Canada.
Horizons can help you grow your business in Canada by helping you find the right local talent, hire them, handle all HR matters and payroll, and ensure that you are fully compliant with both federal and provincial laws. This can all be achieved without you having to set up a Canadian subsidiary company because we act as an employer of record, meaning that you can get boots on the ground in Canada much faster and at a lower cost.
If you would like to find out more about how Horizons can help you with doing business in Canada, please contact us.