For the past five years, Canada has consistently ranked among the top 3 countries for doing business across the world. In 2019, it was ranked as the most comfortable country for starting a business within the G20. Canada’s vibrant business environment also makes it the most attractive destination for entrepreneurs within the OECD countries. Hence, it is no surprise that foreign investors continue to choose Canada, resulting in Canada’s FDI stock to GDP ratio being the second largest within the G20 throughout 2015-19.
For those who wish to migrate to Canada by investing in a robust economy, various pathways with simple requirements are available. These include Programs for Entrepreneurs, self-employed and Start-ups. Investing in Canada is a perfect way to secure permanent residence and citizenship – and most likely to generate significant rewards in the long run, for several reasons:
Fiscal Stability
Canada has established itself as one of the most stable and resilient economies in the world. Despite the impact of COVID-19, The Canadian economy will rebound to a growth rate of 5.2% in 2021. During the pandemic, Canadian businesses and individuals have received the highest government support within the G7, which was the only possibility due to Canada’s fiscal strength. Of the 3 million jobs lost from February-April 2020, two-thirds had been recovered by August.
For the past 15 years, Canada has had the lowest net debt to GDP ratio within the G7. The country also leads to fiscal soundness within the G20. Canada’s banking system is ranked second within the G20, and sixth across 141 countries assessed by the World Economic Forum. 6 of the 50 most dependable and safe banks in the world are located in Canada.
Market Access
Foreign investors who obtain a Canada Business Visa can gain preferential access to 1.5 billion consumers within a highly diversified market representing almost two-thirds of the global GDP. Canada has trade agreements with all other G7 countries and 14 active trade agreements with 51 countries. Daily cross-border trade between Canada and the USA exceeds $1.7 billion, since 16 of the 20 largest Canadian cities are a 90-minute drive away from the Canada-USA border.
Low Tax and Competitive Workforce
Canada’s combined local and federal statutory corporate income tax rate for 2020 (26.5%) is among the lowest across the G7 countries.
There is no tariff on input and machinery imports for manufacturing.
There is a full tax deduction on the manufacturing cost of equipment and machinery for the first year of investment.
The Accelerated Investment Incentive also allows businesses established in Canada to recover their initial capital investment swiftly, which considerably reduces risk. Taxes on new business investment has been reduced to 13.7%. This is lower than the USA and the OECD average, and the lowest in the G7. For manufacturing and processing, new business investment taxation is as low as 3.1% in Canada instead of 19.5% in the USA.
The Canadian workforce is linguistically diverse and the most educated within the OECD – more than 50% of Canadians aged between 25 and 64 have received tertiary education. Recruiting these trained workers significantly enhances business operations and growth.
Innovation is Encouraged
Within the G20, Canada has the highest spending as a share of GDP on research and higher education development. The country also has the most generous tax incentives for R&D within the G7.
Ottawa, Vancouver, Toronto, Calgary, and Montreal are rich in tech talent yet have the lowest-tech costs across 50 North American cities. Tech talent in Toronto is ranked fourth due to its quality, price, and dynamism.
In addition to these factors, Canada’s living standards are among the highest within the G20 countries. The quality of life and living conditions in Canada are among the top five across OECD countries. The country has also been ranked as the most democratic within the G20 – making it one of the most immigrant-friendly investment destinations in the world. To explore business and investment immigration options in Canada, consult our seasoned consultants – and move to Canada lawfully, through the most seamless immigration route for your profile.
