Canada is one of the few jurisdictions that has never had an offshore status and will not have one, the jurisdiction is respectable and expensive, not suitable for everyone. But serious IT projects in 2020 must pay attention to it. Consider the key advantages of jurisdiction:
Canada does not have a register of beneficiaries and is not planned for provincial corporations; the ability to confidently work with the dollar; the ability to open an account in Canada (you get a company and an account in one country, which is the most durable link at the moment); Canadian banks are not required to report to the Canadian tax authorities of the balances and movements in the accounts of Canadian companies; Canadian banks are actively working with companies engaged in the export and import of goods, IT services; beneficiaries – shareholders, are responsible for the activities and for the debts of the company only in the amount of their share in the authorized capital; there is no minimum statutory fund; there is no requirement for an audited annual report, as in many other countries. The tax report is submitted once a year; is not included in any “black”, “gray” list of offshore companies; Double tax treaties signed with 87 countries, including Ukraine and Russia; VAT registration is optional; The possibility of obtaining a residence permit.
Canada is among the 10 most developed economies in the world as of 2020. It is the tenth largest GDP at par and the sixteenth largest GDP per capita in the country. As in other developed countries, the country’s economy is dominated by the service sector, which employs about three-quarters of Canadians. According to the Corruption Perceptions Index, Canada is one of the least corrupt countries in the world and one of the top 10 trading countries in the world with a highly globalized economy. Historically, Canada ranks above the United States and most Western European countries in terms of economic freedom. The country’s average per capita disposable income is “well above” the OECD average. The Toronto Stock Exchange is the ninth largest stock exchange in the world by market capitalization, with over 1,500 companies with a combined market capitalization of over $ 2 trillion.
The government implements a lot of programs for economic development, giving preferences to many industries, including the IT industry. Canada is a choice of exclusively completed projects or those that are focused on its market and the US market.
To summarize, all the jurisdictions mentioned above are different, the UK can be compared to Jaguar, fast and reliable, while Canada is more like Rolls Royce, respectable and stable. Each jurisdiction solves its own problem and before choosing it, it is necessary to analyze your business model by specialists. Unfortunately, the rules of the game on the international market have changed, choosing a jurisdiction is no longer a simple task, opening an account takes a lot of time. Having made the wrong choice, you can not only screw up your project, but also expose yourself to additional risks.
I want to highlight one more aspect that clients rarely think about. Very often you can hear the phrase from a client: but our friends / competitors / partners have such a solution. We have exactly the same business. We also want to choose such a country.
There cannot be exactly the same business tasks. You see only the visible part of your friend / competitor / partner’s business. It is correct that we are considering already operating businesses; a sound link can be gleaned from this information. But the “devil is in the little things” to consider: