Canada is the second-largest country in the world, but that is just one of the many interesting facts about the land of the maple leaf.
It is strategically positioned as an accurate business location, especially for trading, logistics, export and import businesses because of its geographical orientation and natural infrastructure in the country.
The three water bodies surrounding the country support a multitude of trade activities whereas the internally available raw materials and resources.
This ensures that the industry is functional throughout the calendar churning a crucial output of export worthy products, thus, resulting in Canada's GDP touching a whopping 1.6 Trillion USD and still going strong with annual growth at 3%. With a total population of 36 and a half million people and a diversely skilled workforce, the opportunity for business setup in Canada is accurate.
Offshore companies are business entities that do not have a physical office in the location of the business. Still, under inevitable government regulation, they are allowed to indulge in economic activities.
Offshore companies are often extensions of foreign business owners in overseas locations to conduct business and gel into the market.
These companies are also addressed as International Business Corporations or IBCs because their primary business and headquarters are located in a different country of origin, and they carry out extended business activities in various global locations governed by the corporate policies of the respective governments.
These companies do not require physical offices but require individual licenses and Canadian business registration documents as per the rules and demands of the regulatory body in charge of communicating with business organizations which is the Companies Branch of the Ministry of Consumer and Business Services.
Reasons for Starting Offshore Company in Canada
1. Simplistic Incorporation Process
The company incorporation process for Offshore companies in Canada requires the company to be a Private Limited Company in nature. A significant requirement as well is that the company must consist of 1 Director and one shareholder of which one must be a local director in the company contributing a paid-up capital of 1 Canadian Dollar. This is to cope with federal legal requirements of Canadian provinces. The only province which presents an exception to this rule is Quebec, Canada.
2. Resourceful Internal Corporate Circuit
Canada has a resourceful internal circuit of corporate professionals consisting of consultants, advisors, commercial advocates, residential investors and foreign investors to a certain extent as well. The inner channel is relatively accessible through local nominee shareholders that become pseudo critical managerial personnel of foreign-based subsidiaries and offshore companies. Networking with the corporate circuit could benefit aspiring business people in a multitude of ways such as –
- Availing a nominee director for company incorporation
- Tapping into opportunities for acquiring more abundant funding options for building company capital and growing the business.
- Though offshore companies do not require commercial addresses for incorporation, they would still require warehousing and storage spaces for trade-related and supply chain activities. These warehouse units would require managerial expertise to be run smoothly in terms of inventory management and quality control. Thus, tapping into the corporate circuit could help foreign business owners to initiate deals with residential shareholders to be more inclusive as managers of the offshore company.
3. Flexible Government Policies
When the world media mocks many government organizations to be oppressive and authoritarian, Canada's government stands in the sidelines and smirks at the global economy. Canada’s popularity status partially illuminates from the supportive government policies that exist both for the citizens as well as the business entities operating in the country. This includes the flexible taxation system based solely on the external and internal orientation of the business from Canada. 0 taxes when the activity is made outside Canada,
19.5% (15% by 2012) for federal incorporation and 10-16% for Provincial incorporation. Another effective policy concerning legal instruments is the flexible application process for registering Intellectual Property rights in Canada.
4. Canada - A Global Trade Hub
Canada is a global hub for petroleum refinery companies, automotive manufacturers and Original Equipment Manufacturers (OEMs). The existence of these entities in the Canadian market is the reason why Canada is the 2nd largest exporter of goods like crude petroleum, refined petroleum, cars, and spare parts of automotive units across the entire Atlantic trade link. This trade route includes countries like the USA, regions of South America and the Caribbean regions. Moreover, Canada has diversified its trade portfolio, including goods such as forestry products, consumer durables and variety metals ever since the early advent of the decade.
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This acquisition has helped us gather networks of industry leaders in the field of business consultancy, business setup in Canada, accounting as well as bookkeeping services and company secretarial services. We strive to provide quality services and accurate market knowledge to our clients to ensure that the journey of aspiring entrepreneurship is supported with industrial and technical finesse. Contact us to know more.