Canada has for a while now been a strong contender for those looking to invest. And it’s easy to see why.
According to foreign trade experts RSM Global, Canada has preferential market access, through 14 trade agreements, to 51 countries, which make up nearly 1.5 billion consumers and a combined GDP of $49.3 trillion. These agreements include access to all of the G7 countries, which makes conducting trade and accessing new markets a breeze.
Not only this, but Canada can access the European Union with no, or reduced barriers on virtually all sectors of existing trade. 98% of EU tariffs are no duty-free for Canadian Goods, making exporting an attractive prospect.
That’s why, according to recent rankings in both Forbes and US News, Canada is the best country in the G20 for establishing business and is expected to be the second-best country in the G7 for doing business over the next five years.
As well as attractive business prospects, many move to Canada to experience the Canadian work culture. As a country with two official languages (English and French), it should come as no surprise that Canada offers strong, multi-lingual, ethnically diverse workforce. Canadian businesses champion a culture of respect, equality, diversity and justice. Therefore, it is unsurprising that businesses in a variety of sectors (from the aerospace, to mining, to software) flock to Canadian waters to do business.
Advantages of doing business in Canada
Partly due to the attractive trade deals, Canada is a popular place to do business. This combined with the fact that the Canadian economy is predicted to boom post Covid makes it a hotspot for foreign investments.
But what are the advantages of doing business in Canada? We’ve broken down our top 3 reasons why Canada is a worthwhile investment.
1. Income Tax
Canada boasts favorable income tax treaties. This means that any company with no permanent establishment in Canada can do business without bearing the costs of income taxes.
2. Favourable Corporate Tax
Not only does Canada offer favourable income tax, but Canada has one of the world’s lowest corporate tax rates sitting at just 15%. With a key focus on driving economic growth, this is often reviewed- making it a great place to do business.
3. A Highly Skilled Workforce
If you’re looking to invest in Canada, it may be reassuring to note that Canada is renowned for its diverse yet skilled workforce. Made possible by the plethora of top Universities and educational institutions, Canada has a highly skilled talent pool, meaning you won’t struggle to find and retain top talent in Canada.
Investing in Canada
If you’re looking to invest, you can’t go far wrong with Canada. Favourable tax rates and a highly skilled workforce makes Canada a central hub for global trade. This coupled with the fact that Canada’s economy is set to boom,makes it the perfect opportunity for investment.
Luckily, for Foreign Direct Investment (FDI) organisations, conducting trade and accessing new markets from Canada has never been easier. However, it’s essential that investments are made by those in the know.
As a market leading provider of professional services, RSM Global helps international businesses navigate complexity in making foreign direct investments. By consulting experts, you can make sure that you’re getting the most out of every investment.