How to Start a Business in Canada if You Are Not a Resident?
April 19, 2021 | Written by: Sohail Afzal
During the current pandemic, many people have realized the importance of owning a small business alongside their jobs. Some people had made more money than they made before the CoronaVirus happened. On the other hand, many companies went out of business. One way or the other, people are now concerned about having multiple sources of income. Out of all the different sources of income, business is the most reliable one. The size of your business doesn’t matter. The important thing is to start a business at some point to be fruitful for you in the longer run.
If you already own a business and looking forward to opening a branch of the same in Canada as a non-resident, we have got you covered. The safest method to own a business in Canada, whether as a Canadian or a foreigner, is to get your business incorporated right from the beginning.
The first and foremost requirement to start a business in Canada is to understand all the business rules. Canada has ten provinces and three territories, all of them have different rules and regulations. In some provinces, you will be able to scale a particular type of business. In contrast, some other provinces may be suitable for different business types. All of this can only be determined once you start reading all these provincial and territorial rules and regulations.
Following are some tips to start your business in Canada as a non-resident.
1. Go For A Long-Term Business Strategy
A business that can last at least your lifetime is the ideal business plan. To come up with such a business, you need to contact a Canadian Accounting firm. Accounting firms are not only good for handling and filing your taxes, but also, they can guide you from scratch. They know all the ins and outs of operating a business in Canada. They can assist you in designing the most cost-saving business plans. And an outstanding accounting firm can also get you acquainted with investors for your business.
2. Incorporate Your Business
Business incorporation is the most secure method of running a business. It means to disassociate yourself from the company as an individual. And to make the business an entity of its own. That way, you can save many business costs and have a good backup for many financial risks. This step is also incomplete without including an accounting firm. Consulting a Canadian accounting firm for your business’s incorporation will be your best bet.
3. Hire a CPA
Once you make your mind to start a business in Canada as a non-resident, A CPA (Chartered Professional Accountant) is the person that should come in. CPAs have all the experience and skills that you will need for the initiation of your business. If you want to play it safe, go for a CPA and let them handle all the complications of Canada’s Provincial rules.
The critical thing to understand is that you will need professional assistance. If you don’t have the budget to afford this assistance, it is better to wait for a while to arrange some funds to take a cold start. This way, you can save yourself from all the hassle and chances of failure in a business.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.