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Relocating your existing business abroad can be both difficult and lucrative. Canada is an appealing immigration destination for entrepreneurs, business immigrants, and laborers.

If you are considering extending your business to Canada, the professionals at Sobirovs Law Firm can assist you in relocating your existing company to Canada. Here is a summary of the key issues and processes to consider while relocating to Canada.

Step-by-Step Guide on How To Expand Your Business to Canada

A well-planned legal process is required when expanding a business to Canada. If all procedures are performed correctly, obtaining a work permit and becoming a permanent resident of Canada may take 12 to 18 months.

The actions to take when expanding your business to Canada are as follows:

1. Check if your company is eligible to expand to Canada under the Intra-Company Transferee (ICT) Program

Not many business owners can relocate their operations to Canada, and in order to do so, you must meet the following requirements:

A corporation in your country must be currently operational, selling or providing services.

Your business must be at least a year old. The more established the company, the better it is.

Employees are required for a business to function. The company should hire at least one person.

While there is no minimum amount required to operate a business in Canada, your company must have adequate finances to expand in Canada. To keep the firm running, at least $100,000 should be available.

The company must be legally incorporated or registered in its home country, have a complete tax payment record, and have its own registered office.

In this expansion, the applicant(s) itself has to comply with some requirements:

Not everyone in your organization or business group is eligible to work in Canada. The company’s owner, executives, managers, and essential personnel can all relocate to Canada.

Executives must have worked in the company for at least one year in the previous three years.

Managers must demonstrate at least one year of work with the home company and their administrative role in the last three years.

Key people must have at least one year of work experience with the parent company, as well as relevant training, industry expertise, and proprietary information.

Now that we’ve covered eligibility and some of the criteria you’ll need to meet, let’s look at one of the most significant aspects of relocating: how to register your company in Canada.

2. Establishing your company in Canada

When establishing a presence in Canada, you can register a branch of an existing firm or create an entirely new connected company.

Select a Canadian province where you want to conduct business. Most provinces demand that your board of directors include at least one Canadian director.

Canadian director(s) – could be a nominee or a full-fledged director in charge of managing your Canadian activities.

If you do not have a Canadian Director, you should get advice from your Canadian law firm on this matter.

Choose the corporate structure of your Canadian firm as well. A company lawyer or an accountant can provide you with more information on selecting a business structure.

3. Apply for a work permit

After you have registered your company in Canada and completed all of the other steps, you can apply for a work permit to work at your newly founded Canadian company.

Initial work permits are typically issued for a period of one year. Your spouse/partner and children under the age of 22 may accompany you to Canada.

4. Arrive and begin working in Canada

The Canadian authorities typically take 1-4 months to process your work visa application.

You will be awarded a work visa to travel to Canada once your work permit application is approved (depending on your citizenship). When you arrive in Canada, the work permit document will be issued at the port of entry.

You can extend your work permit for a period of up to 5-7 years. This option, however, is dependent on the type of function you play in your firm.

To extend your work visa, you must demonstrate the following to Canadian immigration authorities at the end of your first year in Canada:

You have a legitimate business that is actively selling goods or services in Canada.

The criteria does not compel the corporation to be profitable at all costs.

A general need is that the company be operational and engaged.
You have a physical office in Canada and a presence there.

Workstations and virtual offices do not qualify.

Your company should have at least one Canadian citizen or permanent resident working for it.

These are the most significant things that must be established and demonstrated to Canadian immigration officials in order for the work permit to be extended.

5. Apply for Permanent Residence

In general, before you may apply for permanent residence, your business must be “active,” which indicates that the company:

is not a forgery and is actually selling goods or services to real customers

has all essential licenses and licences to operate in Canada;

has a physical presence and presence in Canada; and

has at least one Canadian employee who is not linked to you.

Once your Canadian firm is operational, you can apply for Canadian permanent residency (PR) as the manager. To be eligible for a position as a manager in the organization, you must meet the following requirements:

Have a CLB 7 for your language skills, which is equivalent to a 6 on the IELTS General Test.

Have at least a high school diploma;

A police clearance or other official character certification; and

Medically fit and free of significant medical conditions

This is how the process for moving your existing company to Canada works, and if you still have questions, please contact us.

Sobirovs Law Firm Can Help

We hope that we have provided you with an overview of the process of expanding your business from anywhere in the world to Canada through the ICT program. You may now choose when you want to take your firm to the next level.

Reasons to Bring Your Business to Canada

Canada has the world’s second largest land area and the tenth largest economy. Entering Canada offers numerous advantages, including the opportunity to explore new markets, take advantage of government subsidies, and profit from business-friendly laws and regulations.

An Ever-Growing Economy

Canada accommodates global business owners with its ever-growing economy. Many such business owners and business immigrants ask whether they can relocate their businesses to Canada, and the uncertainties that come with moving to a new nation weigh heavily on their minds as they make a decision.

Moving your business to Canada is a relatively simple process. We will assist in breaking down the difficulties and emphasizing the benefits of relocating your organization. The following are some of the factors that entice entrepreneurs from all over the world to take advantage of the opportunities that Canada has to offer.

Lower expansion costs than the United States:

The United States and Canada are two countries with a few commonalities and several notable variances. According to a 2016 KPMG study report, the cost of doing business in Canada is 14.6 percent lower for US companies than in the US. This gives Canada a competitive advantage over not only the United States, but also other industrialized nations such as the United Kingdom, Australia, Germany, and Japan.

Some of the important benefits that Canada offers businesses are detailed more below.

Corporate Taxes are Low
In 2019, the corporation tax rate in Canada was as low as 15%, which is considered a low rate internationally. In comparison, the corporate tax in the United States was 21% in 2019, which remains an additional cost and tax burden for businesses.

Access to the markets of the United States and Mexico through the new NAFTA
Canada also benefits from having trade treaties with numerous other countries. Because to the new Canada-United States-Mexico Agreement, Canada now has access to the markets of the United States and Mexico, bringing with it the advantages of doing business in Canada.

Friendly Immigration Policies

Canada has policies that are simple, friendly, and practical for immigration. The Canadian immigration system is merit-based, with a preference for skilled and degree-holder immigrants. It has one of the greatest per-capita immigration rates of any developed country. Over 310,000 immigrants were accepted into Canada in 2018.

A highly skilled labor force

Canada has always been the preferred destination for highly skilled worker migrants. Access to a highly skilled workforce is one of Canada’s primary competitive advantages.

Business Simplicity
In the World Bank’s Ease of Doing Business rankings, Canada ranks 22nd out of 190 nations, and a breakdown of that number places Canada third in ease of establishing a business and seventh in ease of obtaining credit. Aside from that, other elements make conducting business in Canada simple.

Natural resources in Canada contribute positively to the Canadian economy. Oil and natural gas in Canada contributed $108 billion to the country’s GDP in 2018, supported almost 530,000 employment across the country in 2017, and supplied the government with an average annual revenue of $8 billion from 2016 to 2018.

Canada guarantees fundamental human rights as well as other liberties. If they choose Canada for their company’s international expansion, business immigrants can take advantage of free health care and free secondary education for their children.