The traditional train of thought was that if you were looking to either start-up a new venture or aim to expand into the North American Market, The US was the best and, in some cases, the only option.
But in recent times the business community globally has begun to see things differently. Just to the North lies a nation that has an area of 10 million km squared, has a population of 37 million and with a value in 2018 of 1.8 trillion, is currently ranked 10th in the worlds largest economies
Sound like a decent option? We think so!
Here’s some of the best reasons to set up a North American HQ in Canada:
The North American Free Trade Agreement (NAFTA)
In 1994 the NAFTA was created. This treaty was created between Canada, the US and Mexico in order to remove trade barriers between the three nations and in doing so create the worlds largest free trade agreement. NAFTA not only removed tariffs between the nations but it also created rights on the international rights of business investors, significantly reducing the cost of commerce. In recent times the agreement has come in danger of being disbanded however, in October last year after a torturous year of negotiation an agreement was reached ensuring the future on the agreement.
Educated and Skilled Work Worce
A recent OECD report ranked Canada as the no.1 most educated country in the world. With more than 56% of all adults graduation from higher education. Not only that but Canada is also only one of a handful of countries that appears in the top 10 for Maths, Science and reading making it one of the most diversified workforce's globally.
Low Cost of Living
Although the Cost of living in Canada is generally higher than the US. In order to have access to the highly qualified and technical talent that the major cities in Canada can provide you would have to look at the San Francisco Bay area or New York. Both the Valley and New York are notoriously expensive places, a report last year stated that San Francisco rent was 62.6% higher than the US average with a median rent of $3,460.
Government Tax Credits & Incentives
There are an abundance of grants and supports available to Businesses looking to start-up or expand to the North American market via Canada. For those brave enough to take the leap they will be rewarded with a plethora of R&D grants, wage supports, tax subsidies and government financing programs that business can use to there advantage when locating.
A Favorable Exchange Rate
The Low Loonie can be a significant benefit for businesses moving to Canada. For business that raise capital from US Investors, you may receive up to 40% Bonus from the exchange rate.
To conclude..The benefits of doing business in Canada are enormous. And although we are not definitively stating that in every case this is the path you should take when entering the North American market, we certainly believe its an option that should be considered carefully, or at-least more so than historically has been the case.