Canada is a great place to start a business of any size. Whether you want to be your own boss or to bring a medium or large company here, you can join over 1 million vibrant and diverse employers who have built their own success. We have a strong economy, low taxes and business costs, and we are leaders in research and innovation.
Canada’s new Start-Up Visa is the first of its kind in the world, linking immigrant entrepreneurs with experienced private sector organizations that have expertise in working with start-ups. Canada wants entrepreneurs. Unlike programs in other countries, we do not provide “temporary” or “conditional” status. Successful applicants to this program will be able to immigrate to Canada as permanent residents with no conditions attached to the success of their business.
Do you want to build a dynamic company that can compete on a global scale? It starts in Canada.
The Canadian advantage
Canada is open for business to the world’s start-up entrepreneurs. There are many reasons why Canada is the best place to build your business:
- Strong economic growth: Forbes magazine rates Canada as the best country in the G-20 with which to do business. Canada has the strongest fiscal position in the G-7 and among the best fiscal prospects in the G-20.
- Low taxes and low business costs: Canada offers a low-cost and low-tax environment so your business can thrive. Canada’s overall tax rate on new business investment is significantly lower than that of other G-7 countries. KPMG ranks Canada as the most tax competitive country in the G-7.
- Excellence in research and innovation: Canada offers a winning environment for research and innovation, including world-leading research and development (R & D) infrastructure, scientific talent and innovation incentives. Combined federal and provincial credits can return to foreign investors, on average, up to 30 percent of their R & D investment in Canada.
- Top-quality of life: Canada’s top quality of life provides a great backdrop for the success of individuals, families and globally engaged companies. According to the World Bank, in 2011 Canadians enjoyed nearly the highest standard of living in the G-20. Canada is home to a highly educated, flexible and multicultural workforce.
Qualifying for Funds
Before applying, you will need to secure a commitment from a designated Canadian angel investor group or venture capital fund to invest in your business idea. Citizenship and Immigration Canada has collaborated with Canada’s Venture Capital and Private Equity Association, the National Angel Capital Organization and the Canadian Acceleration and Business Incubation Association to identify the participating private sector organizations. A list can be found online at cic.gc.ca/startup.
To apply for the Start-Up Visa, contact one of these organizations and convince them your business idea is worth investing in. Once you have a commitment, then you can apply to Citizenship and Immigration Canada to immigrate through the program.
In addition to passing standard health and security criteria, you will need to demonstrate your ability to communicate in either English or French, that you have completed one year of study at a post-secondary institution, and that you have enough money to live on while establishing your business.
Coming to Canada as a business immigrant
The Canadian Government selects business class immigrants based on their ability to become economically established and support the development of the Canadian economy. Business immigrants are people who can invest in, or start businesses in Canada and are expected to support the development of a strong and prosperous Canadian economy. There are two classes of business immigrants:
- Those who enter with a start-up visa
- Self-employed persons
Start-up visa Program
To be eligible, you must have:
- A commitment of support from a designated Canadian venture capital fund, business incubator or angel investor group.
- An ability to communicate in either French or English
- An adequate amount of money in order to settle and provide for the cost of living prior to earning an income.
Self-Employed Persons
To be eligible, you must have one of these:
- An experience that will make a significant contribution to cultural or athletic life in Canada; or
- Experience in farm management and you must intend to and be able to buy and manage a farm in Canada.
Getting Started
There are services and websites where you can find information and advice about starting a business in Ontario. Many community agencies can also help you find information about how to start a business. To find help, go to Services Near Me and search for “settlement services” in your area.
Business Immigration Ontario
Business Immigration Ontario has:
- A website with information for business immigrants to Ontario
- Business seminars – General information about moving to Ontario and information about doing business in Ontario. Some of the sessions are in English; some are in other languages.
- Networking sessions – You can meet other business immigrants in Ontario and learn about Canadian business practices.
- Tours of towns and cities in Ontario – On these tours, you can meet local economic development staff, visit small business centers and research businesses that are for sale. This is operated by the Ministry of Economic Development and Trade.
Small Business Enterprise Centres
You can get:
- Advice about your business plan
- Information for entrepreneurs, such as booklets, pamphlets, and brochures
- Guidance on how to get licenses, permits, registrations and other documents you need to start a business
- Mentoring and networking opportunities
- Free consultations with a business consultant
These centers are operated by the Ministry of Small Business and Consumer Services. Here is a list of Small Business Enterprise Centres in Ontario.
Useful Websites
- Start a Business – A list of links to information about starting a business in Ontario. From the Ontario Immigration website.
- Canada Business: Services for Entrepreneurs – Information about taxes, licensing, importing, exporting and much more.
- Business Guide for Newcomers to Canada – If you want to start a business in Ontario, this guide will help you understand the government resources that are available to you. It has information about choosing your business structure, regulations, taxation and more.
- Canada Business Ontario – An information gateway for the Ontario business to access federal and provincial programs and services for business. They can help you find answers to your business start-up, business growth, and exporting questions in several ways.
- Connect Legal – is a registered charity that provides legal education and assistance to low-resource immigrants who want to launch and grow their independent businesses.
- Entrepreneur’s Toolkit – Contains free online tools as well as information to help Ontario technology entrepreneurs launch and grow their businesses.
Licensing and regulations to start a business in Ontario
All businesses, large and small, are subject to laws and regulations in Ontario. In Ontario, you are required to register your business name within 60 days of opening your business. You are exempt from this requirement if you use your own name for the business. If you add another word, for example, Your Name Consultants, you must then register the name.
Legal Forms of Business
Before you register your business, you must decide between the legal form for your company. These are:
- Sole proprietorship
- Partnership
- Corporation
Sole Proprietorship
This is the simplest legal form. Simply by beginning operations, and selling your product or service, you are deemed to be a sole proprietor. As a sole proprietor, you are the business – that is, you are not an employee of the firm. The net income of the business becomes your net income and is added to your personal income. A sole proprietorship is responsible for all debts, and the business automatically ceases to exist when the owner abandons it.
Partnership
This is a sole proprietorship that is divided among 2 or more principal business owners. It is important to remember that any debt incurred by 1 partner on behalf of the business is incurred by the other partner.
Incorporation
This is a legal form of ownership that requires more detailed legal filings. Incorporation creates an independent entity that is separate from the “shareholders” or owners. An owner is paid with dividends or shared profits, and/or as an employee.
The major advantages of incorporation are:
- A corporation can issue shares thereby raising capital.
- An owner is indemnified or protected against corporate debt or liabilities (in most cases).
- Incorporation may enhance the image of the firm or maybe customary in the relevant industry. For example, it is mandatory in securing government contracts.
- There may also be income tax advantages at specific levels of net income.
Disadvantages:
- Cost of set up: About $150 – $400.
- Higher administrative costs
Workplace Insurance
Ontario has a regulated workplace insurance system where employees who get injured on the job are protected, administered by the Workplace Safety and Insurance Board (WSIB). Likewise, employers are protected against lawsuits by injured workers. As the employer, you are required to pay an insurance premium on behalf of these employees. Find more information on the Workplace Safety and Insurance Board for the Employers website.
Municipal Zoning and Licensing
Many – but not all – types of businesses require a municipal license. If you plan to open a business you may require a municipal business license. Municipalities are responsible for issuing licenses to the following types of business and trades:
- Vehicular businesses, such as driving school instructors, catering truck owners, taxi owners
- Stationary businesses, such as bowling allies, parking lots, pet shops, drug stores
- Trades and other professions, primarily plumbing, heating, and electrical contractors
For details of fees and application requirements contact the building department or bylaw officer in the municipality where the business is located.
More Information on licensing and regulations to start a business in Ontario
- Start a Business – A list of links to information about starting a business in Ontario. From the Ontario Immigration website.
- Canada Business Network: Services for Entrepreneurs – Information about taxes, licensing, importing, exporting and much more. From the Government of Canada.
- Business Guide for Newcomers to Canada – If you want to start a business in Ontario, this guide will help you understand the government resources that are available to you. It has information about choosing your business structure, regulations, taxation and more.
- Canada Business Ontario – An information gateway for the Ontario business to access federal and provincial programs and services for business. They can help you find answers to your business start-up, business growth, and exporting questions in several ways.
- Pro Bono Ontario – is a registered charity that provides legal education and assistance to low-resource immigrants who want to launch and grow their independent businesses.
