July 10, 2021
Doing business in Canada is much more than doing some number crunching. Not every business may succeed in Canada. Remember that while Canada may be the world’s second-largest country (Russia being number one) by area, the country’s population is just a little over 38 million. That means consumer-focused businesses (typically called Mom and Pop Shops) have limited scope for growth.
Having become the world’s favorite Immigration Destination over the years, Canada is getting more attention from Indian entrepreneurs and investors than ever before. Being considered a “Mosaic” where different cultures, languages, and religions can peacefully co-exist helps. Canada’s respect for Human Rights, safe law and order situation, reputation as one of the least corrupt countries globally, and excellent ranking amongst developed countries vis-à-vis air quality are additional attractions for Nigerians.
Doing business in Canada is much more than doing some number crunching. Not every business may succeed in Canada. Remember that while Canada may be the world’s second-largest country (Russia being number one) by area, the country’s population is just a little over 38 million. That means consumer-focused businesses (typically called Mom and Pop Shops) have limited scope for growth. A franchise of a well-established brand the best option for businessmen with an appetite for limited investment.
How much would you score on Canada’s migration scale? Click to find out
Made in Canada
So, the “how” of starting a business in Canada requires you to make the right choice about “what” business you plan to do. Having a business plan which is export-oriented will help, be it services or manufacturing. Remember that the ‘Made in Canada’ label carries a premium and considerable goodwill.
So, the “how” of starting a business in Canada requires you to make the right choice about “what” business you plan to do. Having a business plan which is export-oriented will help, be it services or manufacturing. Remember that the ‘Made in Canada’ label carries a premium and considerable goodwill.
Unless you are flushed with money and already have some patented products in your armory, please aim not to be in a manufacturing business because it will be a costly proposition because of high establishment and labor costs.
Large versus small province
And like any other country, Canada has large and small (called states in Nigeria) provinces. Identifying the right province to invest in is the next major step. The business-related costs are much less in small provinces. And if your business is export-focused, the provincial base of your business within Canada does not matter. All provinces offer world-class infrastructure. As a bonus, the smaller provinces also provide additional incentives for new enterprises.
And like any other country, Canada has large and small (called states in Nigeria) provinces. Identifying the right province to invest in is the next major step. The business-related costs are much less in small provinces. And if your business is export-focused, the provincial base of your business within Canada does not matter. All provinces offer world-class infrastructure. As a bonus, the smaller provinces also provide additional incentives for new enterprises.
Time and taxes
Outside of deciding the nature and location of the business, please remember the key difference between Nigeria and Canada: Value of time. Almost every service you take is to be paid by the hour. The business and personal taxes can be pretty high and is a combination of federal and provincial taxes. Even the best business idea needs a good business plan that factors in all possible localized factors of your planned business in Canada. Therefore, an experienced and regulated Immigration consultant is crucial to your plans to start a Canadian corporation. Investing in Canada without a well-set business plan is like going fishing without a rod and the bait unless you plan to catch one with bare hands.
Outside of deciding the nature and location of the business, please remember the key difference between Nigeria and Canada: Value of time. Almost every service you take is to be paid by the hour. The business and personal taxes can be pretty high and is a combination of federal and provincial taxes. Even the best business idea needs a good business plan that factors in all possible localized factors of your planned business in Canada. Therefore, an experienced and regulated Immigration consultant is crucial to your plans to start a Canadian corporation. Investing in Canada without a well-set business plan is like going fishing without a rod and the bait unless you plan to catch one with bare hands.
Expanding Nigerian business vs business under Immigration program
The next step on “how” to do a business in Canada is to clarify your business “objective”. Do you just wish to have a running business in Canada, with an overall perspective of expanding your current business in Nigeria, or you want to settle down and run the business as a Canadian permanent resident? The former is possible with the simple incorporation of a company in Canada, followed by hiring local staff in a managerial and operational capacity. You may open a company independent of your business in Nigeria or open a wholly-owned branch or subsidiary office of your Nigerian Company in Canada. The latter requires you to choose an appropriate immigration pathway. The possible paths are an Intra-company transfer visa, Provincial visa programs for entrepreneurs, and a Canada Start-up visa.
The next step on “how” to do a business in Canada is to clarify your business “objective”. Do you just wish to have a running business in Canada, with an overall perspective of expanding your current business in Nigeria, or you want to settle down and run the business as a Canadian permanent resident? The former is possible with the simple incorporation of a company in Canada, followed by hiring local staff in a managerial and operational capacity. You may open a company independent of your business in Nigeria or open a wholly-owned branch or subsidiary office of your Nigerian Company in Canada. The latter requires you to choose an appropriate immigration pathway. The possible paths are an Intra-company transfer visa, Provincial visa programs for entrepreneurs, and a Canada Start-up visa.
Having an entrepreneurial or business background/experience is not a necessity in ones’ desire to start a business in Canada. You can be a young man with a technology idea with limited to no experience or a senior executive with considerable experience in a professional capacity. In either case, you are still eligible to have a Canadian Business. Depending on your chosen objective, the roadmap to starting a business in Canada is different in both instances.
