Every businessman who studies the possibilities of various foreign countries for opening a new company pays attention to stability, reliability, and predictability. According to these characteristics, Canada is a promising country. The latter offers a lot of advantages in terms of starting a business for non-residents of the state.
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Big Country with a Strong Economy
We will not delve into the fact that Canada is the second largest country in the world. This is not a virtue, but a fact. The advantage of Canada is that on this vast territory along with the service sector, strong positions are occupied by agriculture, mining, the automotive industry, manufacturing and others.
Canada is firmly included in the world’s top producers of aluminium, copper, iron, nickel, gold, and uranium.
In Canada, people who are engaged in business are treated with respect, regardless of whether it is a small trading shop, a family restaurant or a large financial company. A person who provides for his family pays taxes, creates jobs, is valued and stimulated in every possible way at the federal and provincial levels.
During the pandemic in Canada, more than 15 different business support programs were created and are still operating. Because of that, the country attracts a lot of investors.
If we take another look, in Canada sports betting is one of the most regulated spheres. There are many restrictions and practically, online gambling is prohibited in the country. Unlike the latter, if you want to start your own business, you will have a lot of perks from the state.
The tax policy of Canada is built in line with the general state policy. Local accountants call Canada ideal for “protecting” your money. When funds come to a Canadian corporate account (subject to quite reasonable banking compliance requirements), the account holder does not need to fight off the tax authorities, the bank and other “interested” parties.
Money will come and will lie without causing any questions. They will quietly go into paying invoices related to the business. This will continue exactly until the moment when the account holders decide to pay dividends. In the tax zone, funds fall at the time of transfer to personal accounts.
In this case, there are two important nuances:
- The incoming amounts can be quite large. The explanation is simple: A transaction of 150 thousand dollars, if it corresponds to the type of activity of the recipient of funds and is justified by reasonable documents, will not raise questions in Canada due to its “normality”, but, say, in a Latvian bank, it will put everyone on the ears – from a manager to a profile vice president.
- Transactions from Canadian banks go without restrictions to offshore zones, Hong Kong, China – anywhere in the world that is not included in the UN sanctions list. And just as easily they are accepted to Canada. Without causing unhealthy interest of tax authorities and controllers.
Offshore in Onshore
In the financial world, Canada has an almost flawless reputation. It’s hard to remember a single money laundering scandal it has been involved in. This gives special advantages to companies operating in this jurisdiction.
One of the forms of starting a business in Canada, available to non-residents, is the General Partnership. Sufficiently specific business registration without obligation to pay taxes, keep accounting and tax reporting in Canada.
For the purposes of Canadian tax law, the General Partnership is a “through” legal entity. This means that all profits/losses are attributed directly to its Partners. Therefore, if the General Partnership conducts business outside of Canada and the Partners are not Canadian residents, these foreign Partners will not be subject to income tax in Canada.