Canada - Market Entry & Business Opportunities

Canada, a multicultural and diverse country, has a population of approximately 38 million people. English and French are the official languages, with English being the most widely spoken. Ottawa serves as the capital, and the country is known for its vast land area of about 9.98 million square kilometres. The Canadian Dollar is the official currency.

Economic Overview

Canada possesses a large and highly developed economy heavily reliant on international trade. Its key trading partners are the United States, China, and the United Kingdom. The real estate, manufacturing, and mining industries are major contributors to the country's GDP. Despite experiencing an economic contraction in the first half of 2020 due to the COVID-19 pandemic, Canada saw a rebound in the latter half of the year and recorded positive growth in the first quarter of 2021. Factors such as low mortgage rates, increased housing demand, and government support contributed to this growth.

Market Overview

Canada has a highly developed economy, with a dominant service industry and abundant natural resources. It ranks among the largest economies globally and has a low level of corruption. Canada offers a high standard of living, with a strong focus on economic freedom and low economic disparity. The country has a thriving stock exchange and key industries include logging, energy, manufacturing (particularly automobiles and airlines), commercial fishing, seafood, and software entertainment. Canada is an active member of international organizations such as the G7, APEC, G20, OECD, and WTO. Small and medium-sized enterprises (SMEs) are important for the Canadian economy, supported by government programs and incentives. The technology sector, skilled workforce, and research and development investments contribute to Canada's innovation ecosystem. The real estate market has seen significant growth, but affordability concerns exist in some areas. Canada has a stable regulatory framework that protects businesses, consumers, and investors, with strong intellectual property protections in place.

Bilateral Relations between India-Canada

• Both countries pursue bilateral relations via dialogue mechanism like Ministerial level Strategic, Trade and Energy dialogues, Foreign Office Consultations and other specific joint working groups.
• The two countries are currently discussing a Comprehensive Economic Partnership Agreement (CEPA) and a Bilateral Investment Promotion and Partnership Agreement (BIPPA/FIPA).
• The Canadian government unveiled its Indo-Pacific Strategy in November 2022 to recognise India as a vital partner and aim to improve Canada’s market access by negotiating and implementing new free trade agreements with Indo-Pacific nations including India.

Taxation And Subsidies Offered By Canada

In Canada, corporate taxes are regulated by the Canada Revenue Agency (CRA). The net tax rate for corporations is 15%, with a lower rate of 9% for Canadian controlled private corporations (CCPCs) claiming the small business deduction. Provinces and territories have their own tax rates, ranging from 9% in Alberta to 16% in Prince Edward Island. Non-resident corporations with a permanent establishment in Canada may be subject to a branch tax, and special rates may apply based on tax treaties. The general rate reduction and manufacturing & processing deduction do not apply to the first CAD 500,000 of active business income for CCPCs. Canada also has double taxation treaties with many countries.

Financing Business In Canada

Here are some common avenues for business financing in Canada-

• Traditional bank loans: Canadian banks and financial institutions provide loans and lines of credit to established businesses.
• Government programs: The Canadian government offers financing programs through organizations like the BDC, EDC, and CSBFP.
• Provincial and regional programs: Provinces and territories have their own financing programs and grants to support local businesses.
• Venture capital and angel investors: High-growth businesses can seek investment from venture capital firms or angel investors.
• Crowdfunding: Businesses can raise funds from individuals through crowdfunding platforms.
• Grants and incentives: Various grants and incentives are available, especially for R&D, innovation, and sustainability projects.
• Alternative financing: Asset-based lending, invoice financing, and peer-to-peer lending are alternative options for business financing.

Top 10 Companies in Canada – 2022

Rank	Company	Industry	Revenue in 2022 (USD)
1	Alimentation Couche Tard	Retail	$ 72.02 B
2	Cenovus Energy	Oil and Gas	$ 50.32 B
3	Imperial Oil	Oil and Gas	$ 43.31 B
4	George Weston	Food	$ 43.27 B
5	Suncor Energy	Oil and Gas	$ 42.81 B
6	Loblaw Companies	Retail	$ 42.65 B
7	Magna International	Automotive Supplier	$ 38.87 B
8	Royal Bank of Canada	Financial Services	$ 38.54 B
9	Nutrien	Mining	$ 37.88 B
10	Enbridge	Oil and Gas	$ 37.57 B

Most Popular E-Commerce Companies in Canada – 2022

RANK	COMPANY	Headquarter
1	Amazon	USA
2	Kijiji	Canada
3	Walmart	USA
4	Ebay	USA
5	Best Buy	USA
6	Canadian Tire	Canada
7	Costco	USA
8	Hudson Bay’s	Canada
9	Home Depot	Canada
10	Newegg	USA

Top 5 Start-Ups In Canada – 2022

RANK	COMPANY	INDUSTRY	FOUNDED IN
1	Xandar Kardian	Information Technology	2017
2	Securicy	Software	2017
3	Gadget	Information Technology	2020
4	Nomic	Biotechnology	2017
5	Riparide	Travel	2016

Business Clusters in Canada

Canada is home to several prominent business clusters, which are geographic concentrations of interconnected companies, organisations, and institutions within a specific industry or sector.

• Technology and Innovation: Prominent clusters in Toronto-Waterloo, Vancouver, Montreal, and Ottawa
• Financial Services: Toronto's financial district is a major cluster
• Natural Resources: Clusters in Alberta (Calgary-Edmonton Corridor) and mining regions
• Aerospace and Defence: Montreal, Toronto, Winnipeg, and Vancouver are key clusters
• Life Sciences and Healthcare: Clusters in Toronto, Montreal, Vancouver, and Ottawa
• Creative Industries: Film and entertainment clusters in Toronto and Vancouver
• Agri-Food and AgTech: Clusters in the Canadian Prairies and Ontario's Golden Horseshoe
• Clean Technology and Renewable Energy: Clusters in Vancouver, Toronto, and Calgary
• Tourism and Hospitality: Clusters in popular tourist destinations like Banff and Whistler.
• Education and EdTech: Growing cluster in Toronto, Montreal, and Vancouver.

How to Start a Business in Canada?

Following steps are involved in setting up a business in Canada:

• Choose a name for proposed business.
• Register & incorporate the business with the government.
• Apply for business permits and licenses relevant to the sector of proposed business.
• Arranging the necessary the financing for your business.

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Best Locations to Set Up Business in Canada

Canada offers several attractive locations for setting up a business, each with its own advantages and considerations.

• Ottawa, Ontario: Ideal for technology and defence sectors with a skilled workforce and research ecosystem.
• Toronto, Ontario: Canada's financial hub, diverse business environment, strong economy, and start-up scene.
• Vancouver, British Columbia: Strategic location for Asia-Pacific markets, technology industry, and entertainment sector.
• Montreal, Quebec: Bilingual city, strong in aerospace, technology, gaming, and AI industries.
• Calgary, Alberta: Hub for the energy industry, favourable tax environment, and proximity to the Rocky Mountains.
• Halifax, Nova Scotia: Access to North American and European markets, focus on marine industries, technology, and research.
• Edmonton, Alberta: Strong economy driven by energy, manufacturing, and technology, with a supportive business community.

Visa and Immigration

Following are the most common visa types offered by Canada to foreign nationals looking to set up a business in the country:

• Visitor Visa or Temporary Resident Visa - A document issued by the Canadian government for foreign nationals to temporarily enter Canada. Required for non-visa-exempt individuals visiting for tourism, business, or non-immigrant purposes. Usually valid for up to six months, but duration is determined at the port of entry. Does not permit work in Canada. Consider other options for business activities or work permits if needed.
• Work Permit - A Work Permit in Canada is a government-issued document allowing foreign nationals to work legally in the country for a specific period. It is necessary for non-citizens or permanent residents engaged in employment or business activities. Multiple pathways exist based on eligibility and requirements. Each category has its own criteria and application process. Duration varies depending on the category and individual circumstances.
• Start-Up Visa - The Start-up Visa Program in Canada is an immigration pathway for foreign entrepreneurs with innovative business ideas. It offers a route to permanent residency by securing support from a designated organization. The program seeks entrepreneurs with high-growth potential and economic benefits for Canada. Language proficiency and meeting eligibility criteria are required. Successful applicants and their families become permanent residents, fostering innovation and contributing to the country's economy. It provides a platform for entrepreneurs to establish and expand their businesses while enjoying the benefits of permanent residency.

To conclude, Canada offers limitless business opportunities across various sectors. Canada has a stable economy, strong rule of law, skilled workforce, and acts as a gateway to global markets especially the United States and Mexican market. Canada presents lucrative opportunities for both domestic and international investors. The country's diverse industries, including agriculture, oil and gas, automotive, mining, and technology, provide a solid foundationX for growth and profitability. Additionally, government support, favourable tax incentives, and robust infrastructure further enhance the attractiveness of investing in Canada. Despite these advantages, it is important entrepreneurs looking to invest in Can to conduct a thorough market study, understand regulatory requirements, and seek professional guidance to maximize their chances of success.

Our firm, India Law Offices, has been part of various international business, legal and tax networks and has formed strategic partnerships with some of the largest law firms and advisors that enable us to serve our clients from across the globe. In Canada we have been working with various premier law firms and professionals that specialize in wide range of practice areas related to business and law.  

If you are a Canadian or a company seeking legal assistance in India or an Indian planning to expand to the Israel market, our firm can provide the necessary guidance and support you require.


To know more about the Canada market, request a Free Detailed Canada Market Entry Report.