Despite strong competition from neighboring USA, Canada remains a land of hospitality and multiculturalism where anyone can find his place. The country is bilingual and notoriously warm-hearted population. How do these factors affect the conduct of business in Canada? Our Canadian partners, Yulex, told us all about the country and why you should develop your business there.
3rd biggest country in the world in terms of land area, Canada has a population of more than 35 millions people spanning 6 different time zones. The GPD per Capita reaches $48,100, rising at a steady rate of 3%. Furthermore, inflation and unemployment are very low at 1.6% and 6.5% respectively. They mainly import Vehicles (17.2% of total imports), Machinery including computers (14.6%), Electrical machinery, equipment (9.9%), Mineral fuels including oil (6.9%) and Plastics, plastic articles: $16 billion (3.7%). 89.8% of Canadians use Internet, but only 67% own smartphones, and social network users reaches 73% of the total population.
With sharp drops after the 2008 financial crisis and smaller, but still noticeable drops around 2014, net inflows of foreign investments and imports of goods and services aren’t looking too positive.
The World Bank ranks Canada’s Easy of Doing Business in 18th place over 190 countries. As you can see in the infographic, Canada wins points in most categories. For example it will only take a day and a half and 0,4% of a person’s income to start a business in Canada (ranked 2nd worldwide). Furthermore, minority investors are highly protected thanks to the high extent of corporate transparency and the high degree of access to legal recourse against shareholders. But difficulties arise specifically when dealing with construction permits and enforcing contracts. Canada made dealing with construction permits more expensive by increasing fees for site plan approval and building permits and enforcing contracts is hard in Canada, it will take on average 910 days compared to 164 for the best ranked country.
You will find below the things you need to know if you are planning on doing business in Canada. As mentioned, Canada is one of the biggest country in the world, so depending on the region you intend to expand to, you should know that there are differences between each province, and on the business culture too! Thanks to our local partner, Yulex, you can find below the main Do’s and Don’ts of doing business in the Canada.
- Make eye contact during meetings, it shows your understanding, sincerity and self-confidence
- Business communication should be straightforward and concise
- In business meeting, handshake is the appropriate greeting
- Dress in a conservative and well-dressed appearance
- Talk a language that no one understands in a meeting, it’s considered particularly rude
- Don’t be late at meetings. Punctuality is important in Canadian culture
- Do not start eating before everyone is served when you are invited out for a professional dinner
- Don’t be offended if pleasantries are exchanged quickly during Business talks
We have looked at many aspects of the Canadian economy and socio-cultural aspects. But why should you expand your business there ? Yulex gave us the reasons to expand there !
“Ecosystem performance 2017:
- Canada holds the distinction of being the easiest location in the G20 to start a business
- More than 10 000 active startups
- More than 150 incubators and accelerators
- Canada stands among the top countries in the G7and G20 countries
- A welcoming business environment
- Diverse, confident, creative, entrepreneurial people
- A strong growth record
- Unparalleled market access
- A highly educated workforce
- Low business tax costs
- Competitive R&D environment (if you want to learn more about that, don’t hesitate to read the article we wrote with them here)
- Financial stability
- A great place to invest, work, and live”
Do not hesitate to send us your request to connect with them if you consider developing your activities in the Land of the True North!