Our website uses  cookies for statistical purposes.

  • Unit 1, 300 Supertest Road, Toronto, ON M3J 2M2
  • clients(at)canadacompanyformation.com
  • +1-(905) 505-4775
Our Articles

Why Is Canada an Attractive Country for Investors?

Why Is Canada an Attractive Country for Investors?

Canada is currently a very appealing country in terms of foreign investments. The taxation system and the immigration policies imposed by the government have made many foreign investors not only to open companies in Canada but also to relocate here. Those who want to start doing business in Canada have many things to consider, among them the stable economy and the fact that Canada is one of the leading G20 countries.

Our company formation consultants in Canada can assist foreign investors interested in setting up a business in this country.

We also invite you to watch our video on the main reasons why foreign entrepreneurs choose Canada for investments:

Canada in global rankings

Foreign investors are always attracted to large economies because they offer many opportunities on the local market, and Canada is one of the largest economies in the world. It is also America’s neighbor which will increase the expansion of businesses across the border.

If taken alone, it suffices to say that foreign businesses consider Canada an attractive country for investments because:

–  it is the 13th most competitive economy in the world, according to the World Economic Forum;
–  it has one of the most educated workforces in the world, made up of both local and foreign employees;
–  it is the 12th most innovative country in the world;
–  it has one of the lowest corporate taxes among the largest economies in the world.

Foreign enterprisers seeking to open companies in Canada here can rely on the company registration services offered by our local advisors.

Incentives for foreign investments in Canada

A less known thing about Canada is that in terms of foreign investments, the government has put in place many assistance programs made of various incentives, tax deductions, and refunds. Among these are the Community Initiatives and the Foreign Trade Zones Marketing programs, which are two of the best schemes related to foreign direct investments in Canada.
Grants and subsidies are also available for research and development (R&D) activities carried out by Canadian companies. There are also several financial programs for foreign investors opening companies in this country.

Foreign investors under the Canadian law on foreign investments

Both the ICA and the Company Law in Canada specify that a foreign investor is an individual or legal person which does not have Canadian residency. The legislation on foreign investments specifies that foreign investors benefit from the same rights and treatment as local enterprisers opening companies Canada. However, there are also certain restrictions related to certain industries where foreign entrepreneurs and companies can participate. These restrictions usually imply percentages of participation in a Canadian shareholding structure. As for the industries these restrictions apply are a few: air transportation, telecommunications, broadcasting and financial services. Our company registration consultants in Canada can offer more information on the restrictions imposed to foreign investors.

What are the advantages Canada offers to foreign investors?

The legislation on foreign investments in Canada also provides for various advantages for overseas enterprisers and companies which can open various types of structures at federal or territorial level and the same tax treatment as local investors.

Under the Investment Canada Act, foreign investors have the right to purchase local companies. These companies can be public or private. The purchase of assets is also possible under the Canadian legislation on foreign investments.

It should be noted that Canada is one of the few countries which measure the results of foreign investments.

Top 10 reasons to invest in Canada 

Among the reasons for which foreigners find Canada a very appealing investment destination we mention the following:

  1. Canada has one of the soundest financial and banking segments in the world, according to the World Bank;
  2. It has one of the youngest and most talented workforces in the world, especially when it comes to innovation;
  3. Canada is home to three of the most desired cities to live in the world: Toronto, Vancouver, and Calgary;
  4. Canada is the last corrupted country on the American continent and one of the most transparent countries in the world;
  5. More than once, Canada was ranked as the best country to do business in the world;
  6. Canada also has one of the most advanced high education systems at a global level;
  7. Foreign investors benefit from enhanced protection in Canada, according to Forbes magazine;
  8. Canada is one of the most influential economies on a global scale;
  9. Canada has one of the largest oil reserves in the world, after Middle Eastern countries;
  10. Canadian companies pay higher dividends than other similar economically-developed states.

If you want to set up a company and need information on the legislation related to foreign investments, we invite you to contact our Canadian company formation agents. You can also rely on us for assistance with the company incorporation procedure in Canada.