Company in Canada.
The Meteoric Rise of Canada as a Popular Offshore Location For Setting Up Company
Have you been looking for prospective locations to set up an offshore company? In this piece of write up, we shall discuss how Canada is becoming one of the prime locations to carry on offshore business activities. Canada is located to the north side of North America and was occupied by the English and French researchers during the 15thcentury. It grew to be a second ranking place in the list of largest countries of the world with over 33 million citizens. As Canada is near the United States, it has a great impact on the trading relationships.
In addition to this, it has become a high-tech industrial destination too with a strong economic system and a wealthy standard of life. There are many advantages of setting up an offshore company in Canada, for instance, some provinces here are tax haven, where the tax rate is low. The place also boasts of natural resources and is striving hard to come at par to the footsteps of the United States. The country is going to transform from a primary destination to a developed industrial sector.
Benefits of setting up an offshore company in Canada
The country offers many important benefits for the companies that are trying to perform their offshore business activities. Some of them include:
- The tax system is not so harsh for the foreign companies. For instance, it is 0% in a few provinces and in some it is as less as 5%.
- The minimal capital required to set up an offshore company in Canada is one Can$. However, for some places, there is actually no minimum capital required.
- The offshore company in Canada can function its business with multiple currencies as the banks offer them the leniency. Also, you can get the MasterCard or Visa ATM card as well.
- It is essential that the offshore company needs to have a corporate headquarters in the country. In addition to this, there can be a virtual office too that needs to have a local telephone number.
- Once all the formalities are completed, it takes just one day to set up the offshore company in Canada. However, in case of a completely new functioning company, a minimum of 5 to 7 days will be required.
- The accounting information can be kept by the company, and there is no need to submit it to the government of the country. VAT is applied to the companies that perform localized services, and it usually is between 5 and 15% based on where the company is established. On the other hand, if the company doesn’t function in Canada, then there is no requirement of the VAT.
- The jurisdiction in the country is very stable and has a good reputation in the eyes of all foreign companies.
- The offshore company can be renewed once every year. This process will need a stamp duty. And also, the company should reappoint the shareholders and nominee director.
- The logistics network in the country is sound and stead, which makes a lot of the business processes smoother.
- The infrastructure in the country for corporations is highly developed and constructed professionally.
If you wish to reap the above-mentioned benefits by setting up an offshore company in Canada, then without any second thoughts go ahead.
How to set up your offshore company in Canada?
Basically, there are three options available for a foreign company to establish its presence in the country. They are:
- Extra-provincial corporations
- Corporations
- Partnership (limited or general)
Based on the type of mode you choose, there will be different steps to follow. It is important that you have your documentation, passport copies, and set up fees ready when you are at the government office to set up your company. In case you need any help from the experts, there are agents available for you all over Canada who can guide you the step by step approach. Very soon, you can have your own office in the country from where you can perform the business activities from one country to another. Good luck with your new venture.
