According to recent rankings in both Forbes and US News, Canada is the best country in the G20 for establishing business and is expected to be the second-best country in the G7 for doing business over the next five years.
Canada’s key industries, which have established industry clusters across the country, are Aerospace, Agri-food, biopharmaceuticals, digital media, machinery and equipment, mining, renewable energy and software.
With Canada’s Global Skills Strategy, fast-tracking visas and work permits for eligible specialised foreign workers can be completed within two weeks. Canada’s secondary education system ranks first among OECD countries and 55% of the population has completed higher-level education making skilled labour accessible.
What are the key countries responsible for FDI business in Canada?
The top four countries responsible for FDI investment into Canada are the US, Netherlands, UK and Japan. The United States makes up almost half (49.1%) of all foreign direct investment into Canada.
The primary industries receiving investment in Canada were in Services, Manufacturing, Oil and Gas extraction and Finance and Insurance.
Are there publicly funded incentives available for FDI businesses in Canada?
Canada offers a wide array of government incentives to FDI businesses through various provincial and federal grant programs intended to ensure that Canada remains one of the top destinations for business investment. These incentives are in the areas of employment/job creation, investment in workforce skills and training, research and development, strategic innovation, e-business, business expansion, regional economic development, investment in environmental best practices/green tech, agriculture, and food processing.
Encouraging investments that will result in significant benefits to Canada, such as the establishment of new manufacturing facilities and/or bringing new manufacturing and R&D mandates to Canada, is of particular importance. Federal incentives are available, offering up to 50% toward projects that are at least $20 million in size, and maybe stacked with provincial incentives for up to 75% total government support toward the project costs.
In addition, Canada still has one of the lowest corporate tax rates in the G20, and offers a number of tax credits, including the SR&ED tax credit offering up to 68% of the incurred R&D-related costs, as well as Co-operative education and Apprenticeship, E-Business and Digital Media tax credits.