Business in Canada: Here’s Step-by-Step Breakup To Become a Successful Businessman
For an Indian national setting up a successful business overseas can be a daunting task. But you can always become a successful businessman in Canada by following a few steps mentioned here diligently. Perseverance and patience can be of great help in your endeavor. Additionally, some smart moves and techniques can make the journey all the more easier.
Picking Up The Right Business Idea
Usually, a person new in business is attracted to what seems to be working around him really well. But the idea may not be really good enough for you. While narrowing down on a particularly good business idea you must take into consideration current trends, your skills, latest innovations, and market statistics. Importantly, first, test your idea around a bit before putting all your capital into it.
Do You Have a Business Plan Ready?
The first step to testing your business idea is to put it down in the form of a business plan on paper. Examine it thoroughly, check out the industry trends, products, and how the market is behaving presently. With all the data ready with you, it will be easier for you to present a perfect negotiating deal to your lenders or investors.
The business plan will also let you know whether your business idea can stand in the market.
Fill Up The Business Ownership Form
To become a successful businessman in Canada you need to first fill up either of the business ownership forms. The three basic forms include the partnership, the sole proprietorship, and the corporation. These forms define the structure of your business and hence are very important. They also provide you with a few options such as a limited partnership or a cooperative corporation. But all these options have to come under the first major three basic structures.
Understanding Financing Options and Choosing the Right One
Even if you have enough capital to invest in a small business, it is always better to know about different financing options available in Canada. It is because you may need urgent cash in the later stage if the payments do not come in quickly or you get a big order and need to update or expand your infrastructure.
From sharing equity, debt financing to government grants, check out all the options available. Try to understand the pros and cons of all these financing options. If possible consult a good financial expert who can help you choose the right kind of finance options for your kind of business.
Complete The Basic Formalities-Registering Business, GST/HST
The basic formalities that are mandatory include registering for a business, getting business insurance, GST/HST, and so on. To operate legally first you need to get a business license. Nowadays, these formalities can be fulfilled online. Your type of business will decide whether you need any more licenses or permits. You can use various Industry Canada tools to understand the type of permits and licenses you will be needing.
Another important step is to register for goods and services tax-GST as well as harmonized sales tax-HST. Even if you have a small startup it is advisable to do these registrations because it will help you to get back what you paid through Input Tax Credits.
Also, there are a few provinces in Canada that do not work in harmony with the federal GST. These include Manitoba, Saskatchewan, British Columbia, and Alberta. If you are doing business in these provinces you will have to register separately for provincial sales tax-PST. For setting up a business in Quebec, you must register for Quebec Sales Tax-QST.
And lastly, you must secure your business by taking business insurance.