Canada is a haven of opportunities. If you plan to start your own business in Canada, many exciting things are coming your way. If you’re a Canadian native, you wouldn’t be much worried about the obstacles and competitiveness in the market as you’re much more aware of the dynamics there.
However, if you’re a non-native, you should first see if you’re eligible for business in Canada. If you have a Permanent Residency and not Canadian citizenship, we suggest getting the citizenship first to avoid extra hurdles.
You can try and take the Canadian Citizenship test. All you have to do is reside inside Canada for a certain time, follow the laws, pay your taxes, do a job, and you’re all set for the test. The Citizenship test will comprise multiple-choice and true/false questions. You have to get 75% of them right to pass. You will also get your Citizenship guide along with the test to learn about Canadian history, culture, languages, law, politics, geography, etc.
Once you’re beyond this big obstacle, you’re all set for establishing your business. Since Canada is a dynamic market, you will find many opportunities to invest. All you need is a sound plan with backup that would help you through even in tough times. If you have entrepreneurship experience already then, it’ll help you even more.
Let’s see how one can start their business in Canada:
Know Your Territory
It is always good to play safe, especially if you plan to establish a business in a foreign land. Most successful businesses are those whose owners know their work. Even if you have to take some other field for business, do thorough research before landing into the market.
It’s better to have ample knowledge and first-hand experience in product distribution, HR strategies, and digital marketing. Several free and paid resources can help you give information about how to plan for a business and learn the startup basics.
You have to understand the basics of a business in Canada. For that, you can build a network of professionals that would include bankers, accountants, business consultants, lawyers, or anyone who is an expert in a certain niche.
You cannot do it all by yourself. These legal matters include account handling, HR management, sales and marketing, financial planning, operations, and much more. You might need a good and trusted team for that.
Pick A Name
Choose a business name that complies well with both legal and marketing considerations. Check the business name restrictions by the Canadian Government. You also have to register your business name with the government.
In short, your business name should represent what the business is about. It should be visually stunning, positive and add a Canadian hint inside to make it more likable. If you’re a foreigner, you can add your personal flavor to the name, especially opening a restaurant.
Choose Business Type
Canadian business is of three types: Sole proprietorship, partnership, and corporation.
There are other options too that come under the umbrella of these three. Your business draft will be made according to the business structure you choose, and your tax deduction will also be decided upon it.
Draft Your Plan
You might have a well-planned business structure in your mind already. Get in on a paper and assess what you can achieve from this plan. Also, look it over and think if it’s impressive enough to attract bankers and investors.
Make your plan to the point, clear, and sound, so the bankers take less time to review it. Your plan must have a compelling narrative that sells it along with the financial figures and your back story research.
Be realistic, don’t be overly optimistic, and tell them you’re a practical person who takes risks.
Obtain Your Business License
Your legal team will have to file for a license. You can contact the government agencies to provide you with a business license.
There are other licenses and permits too that you must obtain. You can use the internet or visit the lost municipal center to know about it.
If your startup’s gross incomes exceed $30000 for four consecutive quarters, you must register yourself for GST and HST. However, it doesn’t apply to all businesses, so you have to ask your finance team about it.
If you’re not earning much money, registering for GST/HST will help you input tax credits on your purchases.
Make A Strategic Alliance
Strategic alliances are there to push the entrepreneurs on their startups in the initial stages. Business owners can choose to team up with established companies that could help them enter the market. It would also help them launch their new products and services, get lower prices through bulk purchases, and share costs for development and research.
You have to focus on what things you are good at and rely on other businesses to offer you complimentary services. For example, a restaurant can partner with an IT company to develop their app and online delivery easier.
Make Sound HR Strategies
Recruit the right people that can handle startups. The initial stages are crucial so pick those who would work with minimal salaries at the start. A team is a deciding factor for a business to pace up or fall behind.
Make your new business attractive through good advertising, participation in job fairs, attending industry association activities, and involving the community inside.
Ensure that your employees are happily working for you. Provide them benefits that are competitive and offer monthly incentives. Encourage them and help them grow your business.
Finance, Insurance, and Marketing
Tell the bankers and investors about your range of needs and don’t hesitate to show additional costs. Look at the cost of equipment, hiring, training, bills, and everything.
Get your business and employees insured through the legal team. Lastly, hire IT and marketing experts to market your brand and products on social media and other platforms through collaborative tools.
These are the necessary steps to get a business started in Canada. Don’t hesitate to research more and earn a great livelihood.