Things To Take Care Of Before Setting Up Small Business In Canada

That article is about Things To Take Care Of Before Setting Up Small Business In Canada. The Small business sector is the most booming sector in Canada and provides 52% of the employment to the country’s population. Due to this tremendous contribution, the Canadian government also provides many stimulus packages from time to time to encourage small business entrepreneurs. Read on for a simple guide on things to take care of before setting up a small business in Canada.

Things To Take Care Of Before Setting Up Small Business In Canada

Identify the best business opportunity:

As per the trends over the last one decade, one of the best small business opportunity areas in Canada is green products. With the shift of interest around the world towards environmental protection, businesses related to greening of products and services have seen an exponential growth. This trend is surely due to continue and in fact grow.

The green products sector includes both greening of current products (like reducing packaging and changing the manufacturing process to reduce the environmental impact) as well as developing products which have little or no negative impact on the environment.

Another trend that has proven to give great returns is development and managing a website. The websites could pertain to either informational content or entertainment content. Other internet based services like home shopping and online retail are also gaining immense popularity.

Identify sources of funding:

Taking in account the high employment offered by the small business sector, the government of Canada has launched the Canada Small Industry Business Financing Program to help finance small businesses. The program aims at assisting entrepreneurs to identify small business opportunities in Canada and also help in funding of the projects. The scope of funding includes start up as well as expansion of small businesses.

The sectors that are eligible under this program include all but agriculture, religious organizations, and non-profit organizations. The financing (up to $500,000) is made available through various lenders who take security in terms of collateral up to 25% of the total amount owed from the borrowers. The loans are given for purchase or improving of fixed assets like land, real property, machinery, equipment, and immovable inventory only.

Though the interest rate on the loan is variable, the cap has been set at 3% annually and 2% of the total amount lent for the registry. Applicants need to apply for these loans directly with the financial institutions associated with the program.

Registration of Business:

This is a legal requirement that entrepreneurs need to take care of. The registration needs to be done in the respective province or territory and depending on the form of business chosen. Although the procedure varies from province to province, the first step of registration involves identifying a business name.

Post that, the relevant forms needs to be filled for the Goods and Services Tax (GST). This process is a relatively easy one and can be carried over the phone as well. The Canada Revenue Agency will then allot a business number which is a unique number used for identification, correspondence, and taxation purposes.

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