Expand Business in Canada

Global Upside helps businesses expand into Canada by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Canadian laws and regulations.

The hiring and incorporation processes in Canada are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Canada. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Ottawa

Currency

Canadian Dollar (CA$)

Language

English, French

Government

Constitutional Monarchy

Country Overview

Located in the northern part of North America, Canada has a population of approximately 38 million people. Since the 20th century, the growth of Canada’s manufacturing, mining, and service sectors have transformed the nation from a largely rural economy to an urbanized, industrial one. Canada is one of the least corrupt countries in the world and has a highly globalized economy.

  • Canada ranks as the 10th largest economy in the world by nominal GDP
  • Canada ranks as the 2nd largest economy in North America
  • Canada has the world’s 3rd most natural resources

Legal Entity Setup

Options for setting up a legal entity in Canada include:

Limited Liability Corporation (LLC)

Limited Liability Corporations (LLC) are the most common forms of a business entities in Canada. If the number of directors is less than four, it is preferred that at least one of those directors is a Canadian resident.

Branch

A branch is an office location, separate from the corporate headquarters, in which business is conducted. A branch is a permanent establishment that, while not a separate corporate entity, is treated as a Canadian resident corporation. The branch must be registered by the associated corporation in each province or territory that it plans to conduct business in.

It takes a minimum of 4 to 6 weeks to incorporate a legal establishment in Canada.

Human Resources

In Canada, there are three main categories of workers – employees, independent contractors, and dependent contractors. As per Canadian labor legislation, employee contracts must be in writing and include:

  • Name of both the employer and employee
  • Commencement date
  • Job title and description
  • Employee compensation
  • Job location
  • Time and place of work
  • Employee benefits
  • Vacation
  • Termination of employment

Payroll

Salaries are paid in the following forms:

  • Bi-weekly
  • Bi-monthly
  • Monthly

The salary days are mutually decided between the employee and employer.

Accounting

The Canadian accounting standards (for establishments excluding public sectors) are issued by the Accounting Standards Board (AcSB), which has adopted the International Financial Reporting Standards (IFRS). These accounting laws are administrative standards for all financial reporting and are the main source of generally accepted accounting principles (GAAP).

Taxation

Corporate Tax

The corporate tax rate in Canada is 15%.

Value Added Tax (VAT)

The VAT rate in Canada is 5%.

Data Privacy

The Privacy Act established guidelines for how the Canadian federal government gathers, utilizes, and reveals personal data. Currently, employee tracking is permitted in Canada in the event that it is directed in consonance with Canadian security rules.

Anti-Bribery & Anti-Corruption Law

The domestic anti-bribery arrangement in Canada (Criminal Code, RSC 1985, c C-46. Section 119 through 125 of the Canadian Criminal Code) applies to various pay-off, debasement, and “impact selling” offenses that seize the installment of pay-offs, profits, and compensations.

For Individuals:

i) Monetary fine of an unlimited amount

ii) Imprisonment for up to 14 years

For Businesses:

An organization may be subject to punitive action resulting from the actions of its representatives and workers if:

i) The organization is aware of the illegal activity of their representatives or workers and neglects to take every sensible measure to stop it

ii) The act is committed by a company executive or high-ranking member within the organization

There is no period of limitation to initiate legal proceedings