By Herbert Brownstein

Entrepreneur: An Entrepreneur is a businessman who desires to establish a business or purchase an existing business in which the businessman will make an investment of approximately $200,000 Canadian and play an active managerial role in the business in Canada. He must be able to show previous managerial and business experience, meaning that he has owned and operated a business in his home country. The Canadian business must be able to create jobs for one or more Canadians and must be considered to make a significant contribution to the Canadian economy.

Business Investors: This category comprises businessmen who have managerial and business experience, meaning that they have successfully operated, controlled, owned and directed a business in their home country and have accumulated by their own endeavours, a personal net worth of at least $500,000 for the $350,000 investment programme, or $700,000 for the $500,000,00 investment programme. Under either one of these investment programmes, the businessman must invest his funds for a five year period in an approved Canadian company worth under $35 million or under an approved government growth fund.

Any person who wishes to establish a business in the province of Quebec may make an application to the appropriate Quebec delegation situated outside of Canada under either one of the following categories:

Entrepreneurs: These are businessmen who have net assets of a least $200,000, at least three years work experience as a manager of a commercial establishment, proof of ownership of a business in their home country and an intention to set up a business in the province of Quebec. The businessman must be willing to play an active role in the Canadian business and employ at least three Quebecers other than members of his own family.

Investors: These businessmen must also have three years of experience in business management of a profitable commercial establishment and have accumulated, based on their own endeavours, net assets of $500,000 under the $350,000 investment option or $700,000 under the $500,000 option. In the province of Quebec the investment is also made for a five year term and the monies are invested in companies approved by the Canadian and Quebec Governments as eligible.

Further, in the province of Quebec many of these programmes are established by banks and under the $500,000 option, a guarantee for all capital and interest during the five year term may also be provided.

Individuals investing in Canada under one of the above-mentioned programmes will have many direct and implied benefits like the businessman will be allowed easy access to the Canadian, American and European markets for his products or services. Based on the double taxation avoidance agreement between Canada, and India, a businessperson can benefit from a lower taxation rate under tax treaties since the Canadian corporate tax rate is lower than the Indian tax rate. The businessman will also be entitled to benefits available to NRIs under the prevailing rules and regulations. Since the businessperson and his family will be the permanent residents of Canada, they will be entitled to free medical and educational services as well as all other rights enjoyed by permanent residents of Canada. The businessperson will be able to sponsor close family members if he needs assistance in his business. The favourable economical and political conditions have resulted in many Japanese, American and European countries having chosen it for their business operations. Some of these companies include Honda, Volkswagen, Volvo, Hughes Aircraft, Kodak, Digital Equipment Corp., Toyota, and many others.

Canadian salaries and minimum wage rates are very competitive with those of other countries. In addition, other costs associated with labour are lower. The Canadian labour force is highly educated and skilled. Canada is one of the top four countries that devotes the largest share of GDP to public education. The Federal government spends over one billion dollars in training and further contributions are received from the provincial governments. In addition, Canadian employers spend approximately 1.4 billion dollars each year on formal training courses. Canadian industries have a productive labour force with very few labour problems such as strikes. Labour turnover and absenteeism rates are low. Canada is a leading exporter of key commodities in both raw and process forms. Canada has an abundanct hydro electric generating capacity as well as natural fuel. It is one of the two G-7 counties that is self sufficient in oil supplies and is the only G-7 country that is not an exporter of natural gas. Recent international surveys show that the industrial prices for natural gas and electricity are significantly lower in Canada than Europe, Japan and the United States. In a 1993 world economic forum report, Canada was rated as the number one country of all G-7 nations in the area of road, railway, air transportation and harbour ports for shipping. This enables Canadian businesses established in Canada to have a great flexibility of transportation choices for the easy movement of their goods and produce. Canada is known to have a less litigious and more negotiating oriented environment than the United States based on its European traditions. Most disputes are settled through negotiation rather than the courts.

Canadian banks which provide both lending and investment banking services, rank among the largest in North America. Additional services are provided by trust companies and insurance companies. The Toronto, Montreal and Vancouver stock exchanges provide international firms with the availability to acquire Canadian equity. In addition, many technical, legal, accounting, advertising and other management consulting firms operate in Canada to provide world class business services to the Canadian businessman.

In conclusion, the Canadian business environment may well be the most advantageous environment to operate international business with offices in Canada providing services throughout North America, Europe and Asia.

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