Canada is calling! But will your business answer?
If your goal is to expand into the Canadian market, you want the straightest and simplest route forward. So - in practical terms, what does that look like?
Typically, you would create a Canadian entity. And while that’s a very common path many businesses take, it can be a long, costly and complicated journey with more than a few potential bumps in the road.
What kinds of bumps? Well, for starters, you would need to go through the process of setting up a Canadian bank account and register with the Canada Revenue Agency.
The other big obstacle foreign companies come up against is navigating the maze of provincial and federal employment and taxation laws. Without getting the right expertise in place, you could be putting yourself at risk of serious legal issues and stiff fines for non-compliance that could bring your expansion efforts to a screeching halt.
But - and there is a big “but” coming here - depending on the nature of your business efforts in Canada, you might not have a choice other than to create an entity.
For example, if you:
- Are selling goods or services in Canada.
- Are planning to create a physical presence or location in Canada (e.g., an office, warehouse, etc.).
- Have agents or representatives conducting business on your behalf in Canada.
- Conduct activities, such as soliciting orders, negotiating contracts, or having inventory stored in Canada.
- Are conducting habitual, continuous and regular business activities in Canada.
If any of the above items sound like you, then a business entity is the right path to take. Just be sure to buckle up!
There’s a far easier path to Canadian expansion
Yes, establishing a business entity is the long-winded, difficult way to expand your business. But - if you don’t need an entity, then there is a faster, simpler path to Canadian expansion: Partnering with an employer of record (EOR).
Onboard your dream team in days
An EOR works on your behalf as the legal employer to your remote Canadian talent. As well, they handle payroll processing, benefits and HR administration while also providing provincially compliant employment contracts.
This allows you to focus on the day-to-day management and enablement of your workforce. Better yet? You can devote more energy towards making your talent productive instead of admin work.
Depending on the EOR you choose, new employees can be onboarded in any city within as little as a day. That’s a massive competitive advantage in being able to scoop up top Canadian talent before your competitors have even started wading through the red tape of setting up an entity.
Speed to market
Speaking of “fast,” let’s talk about speed to market. Like we said before – expanding your business into Canada doesn’t need to be a months-long process.
Partnering with an EOR removes much of the setup and administrative burden on your business. In addition to being able to quickly get out offers and onboard new employees, an EOR can set you up with employment contracts for any province where your talent may live.
Another key piece: Look for an EOR with payroll compliance professionals on staff who not only accurately process payroll, but can advise on other, trickier items like commissions and expenses. Your EOR partner can also provide back-end HR and benefits administration tailored to your business’ needs.
And now, (perhaps) the best part: Once you have everything in place – that’s it. You are completely set to quickly onboard new talent across Canada as you find them, with the EOR being your single point of contact for both you and your talent.
Have the chance to try before you fully “buy-in”
An EOR can be a great way to test out the Canadian market before you decide to commit considerable time, expense and resources into setting up a full-on entity.
According to the Harvard Business Review, up to 75 percent of startups fail when trying to expand into a foreign market. The (hard) lesson here is that even the best-laid business plans can fail due to a whole variety of factors well beyond your control.
Working with an EOR significantly lowers your risk and gives you the time and space to make on-the-fly adjustments to your business strategy without big investments in things like office space and business registration fees hanging over you.
Bridgewater TI: Your bridge to the Canadian marketplace
Think of us as your bridge to the Canadian marketplace.
Our experienced and knowledgeable talent integration team manages payroll and HR administration for the entire employment lifecycle, and stays on top of evolving provincial and federal regulations - all so you don’t have to.
Want to know more about how we can make your expansion plans a reality with worry-free employment of Canadian talent?
Talk to us today!
