How to open a business in Canada. Small Business Ideas Abroad

If not everyone, then the majority wants to be their own boss and have financial independence.

However, many continue to go to work as employees, because they need money for their own business.

And in general, it is difficult. In our country, a novice entrepreneur is faced with a huge number of obstacles, and ultimately few survive. Well, speaking of foreign countries, it is probably even more difficult there, especially if you are an immigrant. But this is a fallacy.

For example, many of our compatriots, as well as visitors from other countries, conduct successful business in Canada. And the point here is not the availability of huge money or ingenious entrepreneurial abilities, it is just that people are given opportunities and are supported in every possible way in business endeavors, especially to the Canadian population, which bring some benefit.

The government of this country is interested in attracting new forces to develop the economy and increase jobs, and therefore creates fertile ground for starting their own business both by citizens of the country and immigrants. This opens up attractive prospects for businessmen who want to live and work in one of the most developed countries in the world. How to open a business in Canada and what needs to be done for this, we will tell in this article.

On the way to the goal: how to start a business in Canada

There are several options how to become an entrepreneur in this country. If we talk about the most popular ways to start a business, there are three of them:

1. Buying a ready-made business in Canada is a fairly common choice of people who have not very much experience in opening and successfully developing their own business. As a rule, this option is simpler than the others, but it may have pitfalls that a novice businessman will not immediately discover (the company has debts, etc.).
2. Starting a new business from scratch and developing it directly in Canada. There are advantages here, in particular, the opportunity to receive support, both financial and informational, from state and private structures.
3. To develop a business that operates quite successfully in Russia, expanding its borders. You can open a branch of your company in Canada, and if you want to move it there completely. This method is suitable for those who have already become a successful entrepreneur in their country and want to explore new territories or completely move to Canada (perhaps guided by some other advantages not related to business.)

Each of these methods has the right to exist and use depending on the specific situation and capabilities of each potential immigrant businessman. We will analyze the main issues that will affect the entrepreneur who decided to open his business in Canada from scratch.

Instructions for building a small business in Canada: basic steps

In order to facilitate the task of a businessman starting his journey, we will consider the main stages that will have to go through to open your own business. This procedure includes the following steps.

Idea

Every undertaking is preceded by an idea that ultimately determines the success or failure of a case. It is important to approach this issue carefully, conduct a marketing research to identify its relevance and viability. The working ideas of small business abroad differ from those that will be successful in our country.

So, for example, in Canada there are a lot of different kinds of legal / law firms and private clinics. Opening another company of this kind for a novice entrepreneur is a deliberately disastrous idea.It will be difficult to deal with competitors firmly on their feet (although everything is possible, maybe you are a genius in laws or medicine).

Among our compatriots who moved to Canada with a view to business, such areas as computer and construction companies, as well as various kinds of companies providing services to the population, are popular. Think about how useful you can share and what will be in demand by local residents. For example, you can come up with your own business for delivering hot meals to offices. But the cuisine will be purely Russian or based on different variations of a single dish (say, dumplings or soups).

Type of ownership

It should be chosen on the basis of a specific idea and other considerations - the size of the future company, the availability of capital, etc. It is worth saying that small business in Canada is the most common option of running your own business, which has many advantages and support from the state. The overwhelming majority of both Canadians and visitors work in this segment. It can open in one of three forms, which you choose yourself:

1. The sole owner, private enterprise like our sole proprietorship (Sole Proprietorship).
2. Two or more owners with collective responsibility (General Partnership).
3. Multiple Separate Owners (Corporation or Incorporation).

By the way, the required amount of security also depends on the chosen form of ownership, which is deposited to the company’s account during its registration. Learn more about each of these options and select the most suitable for you.

Name of the company

“What do you call a boat ...”, in general, you understand that a lot depends on the choice of the name of your future company. By the way, if you give your company your name, you can save on the mandatory audit (about a hundred dollars) needed to identify existing organizations with the same name. The final name of the company will depend on the chosen form of ownership. For example, words like Incorporated, Limited, etc. are added at the end.

Company registration

There are several ways to go through this process. Business in Canada can be registered:

1. Through the Internet. Online you can study all the materials for filling out documents by an immigrant and send an application to local accounting authorities.
2. By mail. To do this, you will need to fill out the form "Form RC1, Request for a Business Number (BN)" and send it to the tax office operating in the territory where your business will be opened.
3. By phone. Before calling the Department, study in detail all the fields of the above form in order to be ready to answer employee questions.
4. Personally. Independently come to the tax office with a completed form.

Registration at the Tax Administration should not be done by all entrepreneurs, but only those whose income from the sale of products or the provision of services exceeds $ 30 thousand per year.

Insurance

The objects subject to insurance include not only the company itself, but also its products (by patenting), trademark registration, copyrights, etc.

Financing

This question is the most exciting and interesting. As already mentioned, the Government of Canada is trying in every way to help start-up businessmen if their activities will benefit the whole society, create jobs, and develop the economy. Therefore, the country has a well-developed system of lending and the provision of loans that are willing to give out.

How to get a small business loan to an immigrant entrepreneur? You can use the financial support provided both under the state program, and under any other, of which there are many in the country. So, the state provides loans in the amount of up to 250 thousand rubles, and only if:

• Your business has an annual income of not more than 5 million dollars;
• is not a religious, charitable or agricultural enterprise.

The program is called The Canada Small Business Financing.Money is provided for up to ten years at about 3% per annum.

There is a separate program for young entrepreneurs (under 29 years old), supported by the Canadian bank Business Development Bank of Canada. There is also a special program for visitors - The Canada Immigrant Investor Program, created by immigrants who have already settled in the country and have risen to their feet. In addition, the country has a huge number of banks that willingly finance small businesses. Immigrants can also get a loan to develop their business.

In April 2013, a new program called Start-Up Visa was launched, which provides comprehensive support for beginning entrepreneurs by already experienced organizations. It consists not only in recommendations from successful companies, but also in the transfer of experience, as well as the promotion of new businessmen.

Every year a quota (rather large) is set for the number of immigrant specialists who are given the chance to use the program in order to organize their business and establish contacts, and cooperate with existing Canadian enterprises.

Conclusion

If you are seriously thinking about starting your own business in Canada, but do not dare because of unreasonable fears, act. The business climate in this country is one of the most favorable.

In addition to the obvious advantages (providing support from the state and private structures), there are others - a loyal tax system, low cost of electricity, etc. Study in detail, step by step, the process of opening a business for an immigrant, the established requirements and available opportunities, and proceed with implementation your idea.