Why Canada?

Some of the benefits of incorporating in Canada (Sooner Rather than Later)

Commercial Benefits:

Image - Your customers need to see corporate commitment; an understanding that they can deal in Canada with a Canadian presence in their home currency, dealing with the governing laws of Contract of their home venue. They know that an incorporated business conducts itself compliantly, with Canadian Directorial presence and intends to locally support its products for the longer term, without them having to take the hop over for final or ultimate deal making. Faster sales closure, without consideration for exchange variances, importation issues, tax withholdings on payment or the like is significant motivation.

Administrative Benefits:

Eliminates duplication - Mandatory legislation will require any Corporation carrying on business in Canada with a permanent establishment to register and report to all applicable Federal and Provincial authorities. Often a U.S. Parent Company begins operations in Canada with only one or two employees, with all operational, financial and administrative support being provided directly from the existing infrastructure and experience available in the U.S. Once a financial, marketing or commercial requirement dictates the requirement of incorporation, all new taxation numbers, registrations, bank accounts and reporting must AGAIN be independently established for the new legal entity. Imagine!

Eliminates later potential restatements - As two similar but different countries we often assume that one knows perhaps more of the others' business methods and required compliance than is actually in fact true. Although the perception is sometimes that Canada can be administratively maintained in a similar fashion to the U.S., Canada is indeed an International entity from this perspective and has a requirement to maintain its books and records in Canada and in local currency. The "dotted line" border is further compounded by several Provincial boundaries that add various dimensions to national reporting requirements. Managing local compliance must be accomplished, sooner, or later.

Taxation or Legal Issues:

Maximization of benefit - Professional local advice must often be sought to evaluate all available incentives, compliance and applicable tax holidays. In addition to corporate income tax and compliance with payroll related taxation, CRA (formerly Revenue Canada) will need to agree with policies such as intra-corporate transfer pricing methods and management fees. We strive to ensure that Corporate Directors and Officers are never exposed or concerned with liability.