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Beyond borders: Navigate your Canadian expansion with BDO

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In today's globalized world, market expansion is no longer optional—it’s often the engine of business growth. Business leaders are constantly seeking stable, prosperous markets to fuel their next strategic move. Look no further than Canada.

Known for its high quality of life, strong social fabric, and thriving job market, Canada offers more than just a great place to live. Canada boasts a highly educated and skilled workforce, access to sizable markets, and a strong commitment to innovation, making it an attractive hub for businesses looking to expand and grow.

Expanding internationally presents its own challenges, but with BDO as your trusted advisor, you have a team by your side to navigate the intricacies of regulations, tax credits, accounting practices, and every step of your Canadian expansion journey.

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Canadian flag flying over Old Quebec City

Why expand into Canada?

Canada's stable economy, skilled workforce, and access to global markets make it an ideal place to cultivate and grow your business.

  • A population over 40 million, offering a substantial consumer base1
  • The 10th largest economy in the world with a GDP over $2.2 trillion2
  • 15 free trade agreements with 51 countries, including CUSMA, CETA, CPTPP, enabling access to international markets

  • Openness to immigration, fostering a highly diverse and talented workforce
  • The Global Skills Strategy4 streamlines application processes times and grants work permit exemptions to attract top talent from around the world
  • 67% of the Canadian population has a post-secondary education, making it one of the most educated workforces in the world5

  • The SR&ED tax credit is Canada’s largest R&D program with $3 billion in tax incentives annually6
  • The government has invested in five Global Innovation Clusters7 to speed up growth in some of Canada’s most promising industries: advanced manufacturing, ocean technologies, artificial intelligence, protein industries, and digital technologies
  • The first country to establish a national AI strategy aimed at advancing Canada’s position as an AI leader and driving economic growth8

  • Canada consistently ranks in the top 20 happiest countries in the world, placing 13th in the 2023 World Happiness Report9 and ranking higher than its G7 peers
  • Ranks 3rd best country for quality of life by U.S. News & World Report10
  • A welcoming and multicultural nation, fostering a sense of belonging and inclusion for newcomers

How to expand into Canada

Choosing how to structure your business is critical for global growth. At BDO, we understand the need to minimize risk, optimize taxes, and maximize profits. Work with a team well-versed in due diligence, tax strategy, and local regulations to help navigate you towards a smooth and successful Canadian expansion.

person holding briefcase
Acquisition or strategic investment
Benefit from the target company’s existing infrastructure, relationships, and customer base for a quicker market entry
puzzle pieces
Subsidiary
Create a new legal entity that operates independently of the parent company, offering limited liability and asset protection
Globe with location point
Branch
Establish a separate location in Canada, without creating a new legal entity, granting the parent company greater control over operations

How BDO can help

Receive support from local resources who understand your business, markets, and industry: all backed by a truly global organization.

Our phased approach to supporting your expansion

The launch phase is focused on establishing the business in Canada, ensuring all the foundational elements are properly set up for a smooth launch. Services include:

  • Incorporation and Business Registration: Assistance with the legal formation of a Canadian entity, including registration for federal and provincial requirements.
  • Regulatory and Compliance Advising: Guidance on relevant Canadian laws and regulations, ensuring compliance from day one.
  • Setup of Cloud Accounting Systems: Implementation of cloud-based accounting software tailored to Canadian operations, ensuring real-time financial data access.
  • Initial Tax Planning and Consulting: Strategic advice on structuring the business for tax efficiency from the outset.
  • Banking and Financial Services Setup: Assistance with opening bank accounts and establishing initial financial services.

Once the business is operational in Canada, the elevate phase helps to enhance operations and prepare for scaling. This phase focuses on optimizing the business setup and expanding its footprint in the Canadian market:

  • Ongoing Bookkeeping and Financial Reporting: Regular maintenance of books and records, ensuring accurate financial reporting.
  • Corporate Tax Compliance: Preparation and filing of corporate tax returns, ensuring compliance with Canadian tax laws.
  • Indirect Tax Services: Handling of GST/HST and PST, ensuring timely filings and compliance.
  • Payroll Services: Setup and management of payroll systems, ensuring compliance with employment standards and payroll tax requirements.
  • Audit and Assurance Services: Providing audit services to meet statutory or business requirements.

The accelerate phase is aimed at maximizing the potential of the business through specialized services that leverage Canadian opportunities and enhance global competitiveness:

  • SR&ED Consulting: Assisting with claims for SR&ED tax incentives, which support companies undertaking R&D in Canada.
  • People Advisory Services: Consulting on human resources strategies, talent acquisition, training, and development to build a strong workforce.
  • Transfer Pricing: Assistance with transfer pricing documentation and compliance, crucial for businesses with cross-border transactions.
  • Advanced Tax and Strategic Planning: Offering more sophisticated tax planning and consulting to optimize the business’s tax position.
  • Mergers and Acquisitions Advisory: Support with expansion strategies including mergers, acquisitions, and partnerships.

Tailored solutions for your industry

science molecules
Life Sciences
Our comprehensive services support Life Sciences companies entering Canada, from navigating tax credits to regulatory compliance and due diligence.
robotic arm moving box
Manufacturing
From supply chain optimization to regulatory compliance, BDO's comprehensive approach ensures a successful Canadian entry for manufacturing companies.
icon with people and money
Private Equity
From fundraising and structuring to due diligence, BDO streamlines the process to ensure a smooth and effective market entry for PE firms.
brain and electrodes
Technology, Media, & Telecommunications
BDO provides guidance to Technology, Media, & Telecommunications companies navigating the complexities of evolving regulations, new business models, and emerging trends in the Canadian market.

Interested in expanding your business into Canada? 

Fill out the form below to connect with a BDO professional for personalized guidance and support for your expansion journey. 


1Canada’s population estimates, Statistics Canada (2024), 
https://www150.statcan.gc.ca/n1/daily-quotidien/240619/dq240619a-eng.htm

2The Top 25 Economies in the Word, Investopedia (2024), https://www.investopedia.com/insights/worlds-top-economies/#toc-10-canada

3Market Access, Invest in Canada (2024), https://www.investcanada.ca/market-access

4Global Skills Strategy, Government of Canada (2024), https://www.canada.ca/en/immigration-refugees-citizenship/services/work-canada/hire-temporary-foreign/global-skills-strategy.html

5Workforce, Invest in Canada (2024) https://www.investcanada.ca/workforce

6Programs and Incentives, Invest in Canada (2024), 
https://www.investcanada.ca/programs-incentives

7Global Innovation Clusters, Government of Canada (2024), 
https://ised-isde.canada.ca/site/global-innovation-clusters/en

8Government of Canada launches public consultation on artificial intelligence computing infrastructure, Government of Canada (2024) - https://www.canada.ca/en/innovation-science-economic-development/news/2024/06/government-of-canada-launches-public-consultation-on-artificial-intelligence-computing-infrastructure.html

9World Happiness, Trust and Social Connections in Times of Crisis, World Happiness Report (2023), https://worldhappiness.report/ed/2023/world-happiness-trust-and-social-connections-in-times-of-crisis/#ranking-of-happiness-2020-2022

10Quality of Life, U.S. News & World Report (2024) 
https://www.usnews.com/news/best-countries/rankings/quality-of-life

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