Page 202 - Caribbean-Central America Profile 2018

CANADA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

The most common taxes are: • Natural Sciences and Engineering Fast and efficient trucking, railways, ocean
• Income tax. Research Council of Canada shipping and air services link the two countries.
• Employment insurance premiums (EI). NSERC works with companies that have To accommodate the growth in trade and
• Canada Pension Plan contributions (CPP). been provincially or federally incorporated commerce, Canada and the United States have
• Provincial sales taxes (PST). in Canada to encourage research and signed a pact to work together to create a Smart
• The goods and services tax (GHT/HST). development in collaboration with Border. The Declaration outlined a 30-Point
universities and students. Action Plan, which provides for ongoing
Canada’s proactive federal government offers collaboration in identifying and addressing
numerous incentives to ensure new businesses • PreCarn security risks, while efficiently expediting the
will be successful. To be eligible for most of the PreCarn funds projects involving the legitimate flow of people and goods across the
following incentives, you must have a company participation of at least two companies Canada-US border. Canada and the US remain
established in Canada: and one university and works with funding each other’s largest trading partners. Mexico
programs in other companies to support is now Canada’s fourth largest export market,
• Scientific Research and Experimental research and development in the field of while Canada is Mexico’s second largest.
Development Program intelligence systems.
Business involved in research and • Film Industry Services CANADA-EU COMPREHENSIVE
development can apply for tax credits on The Canada Revenue Agency administers ECONOMIC AND TRADE
expenditures such as wages, materials and two film tax credit programs to help the AGREEMENT (CETA)
equipment. This is administered by the film industry in Canada. CETA is a modern, progressive trade agreement
Canada Revenue Agency (CRA). that will generate billions of dollars in bilateral
NAFTA ADVANTAGE trade and investment, provide greater choice
• Industrial Research Assistance Program Canada’s NAFTA advantage gives investors and lower prices to consumers, and create
Small and medium-sized foreign subsidiaries access to more than 443 million consumers and middle class jobs in many sectors on both sides
incorporated in Canada can apply for on- a combined GDP of more than US$15.4 trillion. of the Atlantic.
site aid from IRAP’s Technology Advisors, Most large Canadian cities are within an hour-
administered by the National Research and-a-half drive of the United States and many With CETA’s entry, 98 per cent of EU tariff
Council of Canada. are much closer. Several, such as Vancouver, lines will be duty-free for goods that originate in
• BDC Financing Windsor, and Montreal, are only minutes Canada. Another one per cent will be eliminated
over a period of up to seven years.
The Business Development Bank of Canada away. Production locations in Quebec and the
funds companies with a basis in technology industrial heartland of southwestern Ontario Cost savings will also be achieved for
and a sustainable, market-oriented business are often closer to the huge American markets businesses, including small and medium sized
plan. around New York, Boston, and Chicago than enterprises, through CETA commitments on
popular American production hubs like Atlanta, customs and trade facilitation, which are aimed
GA, and Raleigh, NC.

Starting a Business - Registration Requirements:
No. Procedure Time to Complete Costs
1 File for federal incorporation and provincial registration via Industry Canada’s online 1 day CAD 200
Electronic Filing Centre
To file for incorporation electronically (via Online Filing Centre), the cost is CAD 200. There is no fee
for the provincial registration in Ontario. Electronic filing for incorporating a business is 1 day and the
Business Number is sent to the company within 5 days.
The following documents are required to file for federal incorporation and provincial registration:
1. Form 1: Articles of Incorporation
2. Form 2: Initial Registered Office Address and First Board of Directors
3. Provincial registration form.
While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova Scotia and
Saskatchewan can be done at the same time when the documents for federal incorporation are filed
(via Joint Online Registration System), generally, a federal company that intends to conduct business
in other Canadian province would need to register in that province individually. See, for example, Part
11 of the Business Corporations Act (British Columbia).
2 Register for VAT less than one day no charge
All private corporations with turnover of over 30,000 CAD per quarter must register for the VAT – (online procedure)
referred to as Goods and Services Tax (GST)/Harmonized Sales Tax (HST) – with Canada Revenue
Authority (CRA). In order to register with CRA, corporations must provide the Name, phone number,
and the Social Insurance Number (SIN) of at least one owner/director of the business and the
Business Address and Major Business Activity (MBA) when registering. Registration can be done
online at http://www.cra-arc.gc.ca/menu-eng.html - at no cost.
Source: The World Bank Group

D-2 Caribbean-Central American Action