BUSINESS  CANADA


Canada is currently the absolute insider tip when it comes to setting up a business, not for nothing it is one of the richest countries in the world. With only about 35 million inhabitants, this country is almost 30 times larger than Germany and almost as big as the whole of Europe. By the way, many inhabitants are children of immigrants, about 10% of the whole population have a German descent. Canada is otherwise bilingual, as not only English is spoken, but also French. Who wants to start a business in Canada, should therefore take care of the necessary language skills in advance. 

The economic and trade agreement with Canada, or CETA for short, is one of the most common reasons for investing in this country. In 2013, Europe was already Canada's most important trading partner after the USA. Canada's foreign trade is only restricted in a few areas, as it is predominantly free and also makes up the largest part of the economy. 

The best tips for a successful business in Canada 

  • Choose the right location
  • Clarify company forms well
  • exploit locational advantages
  • Be flexible with the start-up idea
  • Pay attention to a sustainable business model

The right location is of course crucial for success. In Canada, however, the choice is not particularly difficult, as this country basically only has four interesting metropolitan areas, where the majority of the population also lives. When making a shortlist, it is important to make sure that the customers or consumers are really very easy to reach. This also ensures that suitable employees can be found. The service sector, for example, is mainly concentrated in Calgary, Montreal and in Toronto, industrial companies are mainly located in Quebec and in the Ontario province. As far as raw materials are concerned, however, mineral deposits are widely distributed, as, for example, iron ore is mined in Quebeck, Labrador and in Newfoundland, copper and gold are common in northern Ontario, and diamond mining is widespread in the Northwest Territories. Ontario, by the way, is not only the most populous province in Canada, but it also has the highest GDP value compared to the other 12 provinces. 

The form of business for a successful business in Canada depends on the industry and the goals. There is the possibility of retail businesses, which however must be founded by a Canadian, as well as the possibility of the partner business form at the provincial level. This is a general partnership, which requires at least two private individuals. In this case, both partners act without limitation and also jointly and severally, so to speak. In the case of the limited partnership, in some Canadian provinces not only the incorporation agreement is necessary, but also the registration with the authorities. In this case, the company is managed by only one person, who is also personally liable. Furthermore, there is the option of Limited Partnership, Limited Liability Partnership and also the corporations, i.e. the Corporations. When forming a corporation, the Canada Business Corporation Act is the legal basis. 

Once the form of the company has been clarified, the advantages of the chosen location should be exploited to the full. It can be worthwhile to get in touch with already specialized start-ups in order to better exploit one's own business model in a foreign country. If necessary, this can also be a very important factor in order to work together with other start-ups in the future and also expand into other business areas together, if the respective companies can also complement each other really well in just about every respect. 

If you stay flexible with your start-up idea, you have much more chances than if you just stick to the planned business model. In many cases, the typical German attitude and perfection is to blame for the fact that many companies fail abroad. One should definitely be aware of this fact, because in a foreign country, many things will certainly not work as easily as one imagines. Even if it is Canada and not a so-called banana republic, where the clocks usually work the other way round anyway and the mentality of the inhabitants is completely different. Only those who have been in another country for a longer time can understand this important factor. Otherwise, you have to learn from bad experiences and make the best of it. 

It is worthwhile to pay attention to a sustainable business model right from the start in order to really exploit all the advantages of this country and, of course, also the given trade opportunities to the fullest extent. If necessary, it may also be possible to take advantage of subsidies, which can also result in interesting tax benefits, for example, if the company is engaged in research and development. However, whether the business is subject to Canadian controls or not also plays a role in this factor. In any case, a sustainable business model can also contribute significantly to better success in the company. 

By the way, in order to start a successful business in Canada, one should not ignore the other free trade agreements, as Canada also has agreements with Chile, Costa Rica, Israel, Jordan and also with Panama.