Reasons to do business in Canada

First and foremost, Canada is known for its stable political situation and reliable economy, making it attractive for investments and business activities.

Canada ranks highly in numerous ratings that consider the country's economic situation and ease of doing business:

• 2nd place in the G7 for political stability;
• 3rd place in the G7 for banking system reliability;
• 4th place in the G20 for least complex business jurisdiction;
• 5th place in the list of best countries in the world in the "Entrepreneurship" category;
• 9th place among the world's strongest economies;
• 15th place out of 64 countries for financial system reliability.

Stable Economy

The Canadian economy shows steady growth rates among G7 countries. According to IMF and OECD forecasts, Canada will show the strongest economic growth in the G7 in 2025. It stands out among other countries in several indicators, for example, Canada boasts high employment growth rates in recent years and the lowest deficit-to-GDP ratio in the G7 — only 2% in 2024 (compared to: USA — 7.6%, France — 6%, UK — 4.3%). The Canadian government is taking active measures to maintain economic growth and the labor market, and is striving to control inflation growth. Overall, Canada continues to maintain its position as one of the most stable and promising economies on a global scale.

Access to International Markets

Access to international markets is one of the important advantages for companies doing business in Canada. Transparency of the legal system, a stable economy, and favorable conditions — all this attracts international investments and provides access to financing and capital for development and expansion into global markets.

Canada actively participates in international trade agreements: its largest trading partners are the USA, UK, and China, and Canada's free trade agreements cover 50 countries. These agreements provide preferential trading conditions between Canada, the USA, and Mexico, making it easier for Canadian companies to export and import goods and services.

Many international companies and investors are present in the Canadian market, which contributes to business development and trade on a global level. Such international connections create numerous opportunities for cooperation, partnerships, and expansion into international markets through a network of foreign partners.

It's worth noting that Canada is a center of innovation and technological development in industries such as information technology, biotechnology, and clean energy. Canadian companies actively develop and implement new and relevant technologies, making them competitive in the global market.

All these factors combined make Canada an attractive place for business development with the prospect of entering global markets. However, companies need to consider local and international laws, regulations, and requirements for successful international trade.

Skilled Workforce

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Canada is known for its skilled workforce, which is one of the key factors in attracting investment and business development in the country. Several factors contribute to this aspect.

First, the level of education in the country is particularly noteworthy. Usually, such an indicator as the quality of the educational system is closely related to the economic situation and overall well-being of the country. The level of education in Canada has long been renowned for the high quality of teaching in educational institutions. Many universities and colleges in the country offer carefully developed and practice-oriented training programs in various fields, including science, technology, engineering, business, and medicine. According to the world education ranking, Canada ranks 4th.

In addition, Canada pays attention to developing the technical skills of its residents. Workers have knowledge in information technology, engineering, scientific research, with special attention given to continuously updating this knowledge, as it can quickly become outdated in the modern world.

Another factor contributing to the creation of a working environment is cultural diversity. Due to the mixing of different nations and cultures, workers learn to respect and accept differences and are ready to work in diverse teams. This creates a favorable atmosphere for cooperation and innovation.

Canada has various immigration programs for highly skilled professionals, allowing companies to attract talented and experienced workers from other countries. Most of these immigrants are skilled workers in areas such as healthcare, manufacturing, and construction.

Low Taxes

Canada offers a business-friendly environment with competitive taxes. The corporate tax rate in the country is 26.5% in 2024-2025, making it competitive among G7 countries. For new business investments, a tax rate of 13.0% is set, which is one of the lowest among G7 countries and significantly lower than the similar rate in the USA.

Canada also exempts from customs duties the import of equipment and components for production and offers accelerated investment stimulation, allowing businesses to quickly recover initial capital investments and reduce risks. From 2024, the OECD global minimum tax of 15% for high-income multinational enterprises is in effect.

Small Businesses in Canada and Support Programs

Small businesses play a significant role in Canada's economy. They make up 98% of all employers and provide jobs for 10.7 million people, which is two-thirds of the total number of all workers in the country — 64%.

The great diversity of entrepreneurs, local businesses, startups, and growing companies across Canada shows that the country supports the entrepreneurial spirit and good ideas, allowing residents to develop their businesses and create new jobs. The government is making efforts to ensure a suitable investment climate and promote successful business development.

The 2024 budget includes many items aimed at supporting businesses and enterprises. Many investment projects and programs are aimed at simplifying the launch of new companies and developing existing ones by reducing bureaucratic procedures and providing the necessary tools for growth:

• Small Business Carbon Rebate Program: Refunding pollution pricing revenues from 2019 to 2023 through a new refundable tax credit. This program targets small and medium-sized businesses in provinces with the federal backstop system, employing fewer than 499 people. This initiative will directly return over CAD $2.5 billion to businesses.
• Supporting Young Entrepreneurs: A CAD $60 million investment over five years for Futurpreneur Canada, providing young entrepreneurs with increased funding of up to $75,000 without collateral (up from $60,000), mentorship, and other business programs to help launch and grow their ventures. This support is expected to help approximately 6,250 additional young Canadian-owned businesses successfully start and scale by 2029.
• Canadian Entrepreneur's Award: Reducing the tax rate to 3.3% on capital gains up to CAD $2 million, allowing entrepreneurs to receive a tax exemption on CAD $3.25 million when fully or partially selling their business.
• Investing in Canadian Startups: Allocating CAD $200 million over two years starting in 2026 to increase access to venture capital and investments in underserved areas and communities.
• Reducing Credit Card Fees for Small Businesses: From October 2024, the government has finalized agreements to lower credit card processing fees for small businesses.

In addition to federal business support programs, each province also develops its own strategies to support small and medium-sized enterprises, creates various campaigns to attract young entrepreneurs, develops business education programs, provides grants, and more.

Green Light for Green Business

The Canadian government is concerned about environmental preservation and therefore creates favorable conditions for green business development. The country has one of the lowest corporate tax rates at 17.9% for companies involved in manufacturing and processing zero-emission technologies. Additionally, it ranks second among 18 countries that are home to 12 of the top 100 cleantech companies.

Canada also offers a full tax deduction in the first year of investment for the entire cost of equipment and machinery used in manufacturing goods and certain clean energy equipment.

The country has extensive clean energy sources, with 68% of energy production coming from renewable sources. Furthermore, Canada ranks high among G20 countries in sustainable development and environmental performance indices.

Immigrants and Business

Immigrants have always played an important role in Canada's development. Today, immigrant entrepreneurs and business leaders are key to the continued growth and prosperity of the economy.

Immigration has a significant impact on Canada's business sector. More than a third of all business owners with paid staff are immigrants. They create jobs in various sectors of the economy, particularly in areas where Canada has a special need. Currently, these areas include construction, healthcare, retail, and professional services.

There are over 600,000 self-employed immigrants in the country, of which about 260,000 have employees. Additionally, immigrants hold a significant number of senior management positions in various sectors such as finance, communications, business services, trade, and others. The vast majority of immigrant-owned and operated businesses are in the computer technology, healthcare, restaurant, and transportation sectors.