The process of opening a business in British Columbia (BC) is similar with the one that can be met in all liberal economies. You will first have to know if starting a small business in BC is the right approach for you or if your interests are better represented through a large company and from this, you will be able to decide on all other aspects, the first being selecting the suitable company type.
This is a crucial aspect, as some company types are more suitable for small businesses, while other are created for the needs of larger companies. If you need advice on how to start a business in BC, you can always rely on our team of consultants in company registration in Canada.
There are numerous steps in the process of company formation in Canada, and this applies to British Columbia as well. Before starting the legal procedures through which a business form gains legal personality and thus, gains the right to perform commercial activities in this Canadian province, you will have to establish what type of business you want to start – a small business, with few employees and a simple management structure, or a large company, which develops complex operations.
After this, you should decide if you will register a partnership or if you will select a corporate structure, such as the private limited company. Those starting a small business in BC can also register a sole trader, which represents the simplest way to develop a business here – this is an entity designed solely for natural persons who want to use their abilities and expertise for their own benefit.
The sole trader can have only one founder and in the case in which you consider that you will need a business partner, it can be a good idea of incorporating a business in BC as a partnership or as a private limited company, and still develop a small company.
However, the company type that you will select is of crucial importance, as this will have a tremendous impact on your rights and obligations, but also in terms of tax level and compliance, so please address to our team of consultants in company formation in Canada for tax advice.
Once you have decided on the most suitable business form, you should prepare a business plan that will set out the basic layout of your business. This document is not necessary just for yourself when starting the company, but it can also be required by banks and local institutions.
If you are interested in starting a business in another country, such as Malta or the Netherlands, we can put you in touch with our local partners.
Then, you should have a clear image on the capital you need to start a business in BC and the overall costs related to the process of company formation in Canada, but also operating costs, employment taxes, corporate taxes and other expenses. Besides these, the following must be completed as well:
The entire Canadian territory provides numerous competitive advantages for investment purposes, and selecting a region can also be influenced by the sector that you are interested, but also by the local tax advantages and other economic conditions. Below, our consultants in company registration in Canada present few reasons for investing in BC:
Those who want to open a company in Canada in Province of British Columbia must know that this region has attracted a large proportion of the foreign direct investments concluded in this country. Form 2018 to 2019, the investments increased by 33% and this should be of interest for those who want to start a business in BC. For more details on starting a company here, please contact our team of consultants.
The Canadian region is divided on provinces, and each of them can establish, to a certain degree, its own taxation system.
Thus, investors who want to register a business in Canada in the region of British Columbia must expect to deal with a different tax system than the one applicable in other Canadian provinces (the taxes are the same, the tax rates differ). Taxes are charged to individuals as well.
For instance, for 2022, the country’s federal tax rates charged to individuals vary from 15% to 33% (the tax is applied based on the annual income of a person), while the regional taxes in British Columbia range from 5.06% to 20.50%.
Our accountants in Canada can offer more details on the income brackets available here and the tax rates imposed to the income of a person living in British Columbia.
We invite you to address to us if you want to relocate to British Columbia for the purpose of starting your own business.
You can apply for the Owner Operator program in Canada, as long as you satisfy the conditions imposed under this program (full ownership of a business or majority ownership, the creation of new jobs, a reliable business plan that can be approved by the authorities, etc.).
We can also provide legal representation if you want to arrive in British Columbia under the Intra Company Transfer in Canada, which is also an immigration program, but designed for foreign employees.
This program is addressed, as the name suggests, to employees who work in foreign companies that can be transferred to the company’s offices working in this country.