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Canada’s immigration policy has always been favorable, making it easier for many immigrant applicants in the application pipeline and those who want to choose Canada. In order to attract a large number of immigrants and outstanding entrepreneurial business professionals to start a business in Canada, the Canadian government has deliberately raised the immigration quota and expanded a series of entrepreneurial immigration policies.
What are some of the most important issues for start-ups as an immigrant? Today, Simard & Associates would like to share with you some of the key points.
1. Tax Policy
Canadian taxation is indeed relatively simple compared to many other countries. Canadian companies are only required to pay income tax on corporate profits and are not subject to other taxes.
If a company is owned by a foreign shareholder, i.e., 51% or more, it is subject to the same corporate income tax rate as foreigners, which is approximately 26%. On the other hand, if the controlling shareholder is a Canadian permanent resident or a Canadian citizen, the tax rate can be as low as 12%, which means that you will only pay when you have net profits, but not when you have no net profits or losses.
2. Employment Costs
The overall cost of labor in Canada is higher for manual labor jobs, such as lawn mowing, roofing and construction workers. They are paid about $60 per hour. But for high tech IT technicians, it’s about $100,000 a year.
The following is a list of the salaries of some occupations for your reference.
– IT technician ($100,000-$150,000/year)
– Office generalist ($30,000/year)
– Prestigious university graduates ($40,000/year)
– Labor force workers, such as construction workers ($40-60 per hour)
In addition, there are other miscellaneous expenses such as marketing costs, website maintenance, and accounting fees for the business, which basically range from $2,000 to $3,000 per year.
For example, some industries require inventory, and the initial batch of inventory may cost tens of thousands of dollars, while some industries do not require it. All of these can only be designed later according to the actual industry and needs of the individual, and the lawyer will help to improve and write the business plan. But in the operation of some of the related costs are probably these contents.
3. Preferential Policies
The Canadian government has always had a policy of subsidies for dental businesses. For example, if you invest 1 million Canadian dollars in research and development, the government will give you a subsidy of 60%, that is, 600,000 Canadian dollars.
As each industry is different, the Canadian government is divided into federal and provincial governments, as well as some private funds, which have certain support and support for research enterprises, but you must understand the relevant policies according to the industry you are engaged in.
4. Office rent
Offices in Canada are divided into geographic locations, and are also divided into Grade A and Grade B offices. Downtown Grade A offices are actually similar to the CBD in Beijing. For example, an office with an area of about 4 square meters can seat 2-3 people, and the monthly rent is $2000. If it is a Grade B office in Downtown, the monthly rent is about $1000 CAD for 20 square meters.
In addition, there are several cities around Vancouver, such as Surrey and Burnaby, where the rent is even cheaper. For example, the popular shared workplace is $400 per workstation.
Besides, Canada allows homes to be used as offices, like the kind of garage you’ve heard of. Some people even use their own garages or rooms for this purpose. If the applicant chooses to start a business in another province, this cost may be slightly lower.
It is not difficult to start a business in Canada as long as you follow the rules. Many people are afraid that starting a business in Canada will be a hassle because they don’t understand it. However, it is relatively easy to start a business in Canada because many of the rules and regulations are very clear. As long as you follow these rules and regulations, you do not need to worry about the business tax raids, just focus on business operations.
It is important to note that before doing so to understand what government regulations on the industry. If it is said to need to do some preliminary approval procedures, in accordance with the requirements to do reasonable tax avoidance, but you can not evade tax.
I believe that many people would like to know the answer to this question. However, this question is difficult to answer specifically, only the following points can be given to you as a reference.
There are also many applicants who are concerned about the cycle of business immigration to Canada. How long does it take to process Canadian business immigration? How long does it take to land in Canada and how long does it take to get a Maple Leaf Card? All of these issues are closely related to the living arrangements of the applicant’s family.
The overall processing cycle for Canadian federal business immigration is about 5-7 months, i.e., you can get a work visa and land in Canada in about 5 months. During this time, the applicant needs to prepare the information of the domestic parent company, complete the registration of the Canadian subsidiary, and write a business plan for the Canadian subsidiary to be submitted.
After the applicant has landed in Canada, he or she will complete the business start-up and then choose the corresponding provincial nomination project for immigration application submission according to the province where he or she is located. In other words, it takes 3-5 months for an applicant to land from the start of the application for federal entrepreneurial immigration, 12 months to start the application for provincial nominee immigration, and 14 months to get a permanent residence card, so the overall cycle from starting the project to getting permanent residence is about 2.5 years.
Finally, the applicant can decide when to switch to permanent residence based on the specific situation of the family. Many people wish to obtain permanent residence as soon as possible, but are uncomfortable with the immigration regulations that maintain permanent residence in Canada. The advantage of Canadian immigrant start-ups is that the first step is to get a work visa to start a business, and the longest work visa can be taken for seven years.
This is how much it costs to start a business after immigrating to Canada. Simard & Associates is a team of experienced immigration consultants who have worked with numerous families and applicants to complete various Canadian immigration programs and provide one-stop immigration consulting services that make it easy for you to move to Canada.