Simon Pribac
BA Hons.
CANADIAN SLOVENIAN
CHAMBER OF COMMERCE
2015
Disclaimer
The content presented here is of an informational nature only and subject to change without
notice.
Any formal business dealing in Canada, and any associated requirements, including, but not
limited to, government legislation, taxation, or any other legal requirements, are the sole
responsibility of your company.
This presentation does not guarantee business success or any other direct benefits.
E&OE
Executive Summary
• CSCC was established in 1990
• It currently consists of approximately 120 members and
growing (companies, professionals, students, non-profits).
• CSCC organizes 7-10 events per year in Canada (seminars, lectures,
networking events, banquets, cultural events)
• CSCC is currently working on reinforcing its presence in
Slovenia/EU and help Slovenian/EU companies gain
access to Canadian Market and Canadian companies to
Slovenian /EU markets
• CSCC supports the Canadian Slovenian community and
facilitates trade and commerce connections between
Slovenia and Canada
CSCC Mission
To foster and promote:
• trade,
• commerce,
• industry
• investment
with specific emphasis on the Canadian Slovenian aspect
Vision
CSCC to become the premier association to:
• Foster trade relations between Canada and Slovenia
• The main point of contact for Slovenian companies
entering the Canadian market
• The main point of contact for Canadian companies
entering the Slovenian / EU market
Why Canada?
Ranked as one of the world’s best business destinations
8.54
Hong Kong
8.49
Singapore
7.88
Denmark
7.84
Canada
7.82
United Kingdom
7.76
Netherlands
7.67
Finland
7.59
Switzerland
Australia
Ireland
Variables considered:
Economic fundamentals
Regulatory barriers
Ease of doing business
Regulatory quality
Rule of law
7.55
7.46
Source: Milken Institute, March 2013
Why Canada?
Canadian Competitive Advantages
Welcoming business environment
Canada is the best country in the G-20 to do business, according to both Forbes and Bloomberg.
Source: Forbes and Bloomberg
Strong growth record
Canada led all G-7 countries in economic growth over the past decade (2004–2013).
Source: The World Bank
Unparalleled market access
With CETA implementation, foreign investors in Canada will have assured preferential access to both NAFTA and the
EU - a vibrant market with a combined GDP of US$38 trillion, or nearly one-half of the world’s output of goods and
services.
Source: The World Bank
Highly educated workforce
Canada’s workforce is the most highly educated among members of the OECD, with half of its working-age population
having a tertiary level education.
Source: Organisation for Economic Co-operation and Development
Why Canada?
Canada Competitive Advantages
Low business tax costs
Total business tax costs in Canada are by far the lowest in the G-7 and 46 percent lower than USA
Source: KPMG
Competitive R&D environment
Canada offers the lowest business costs in the G-7 for R&D-intensive sectors, with a 15.8 percent cost advantage over
the USA
Source: KPMG
Financial stability
For the seventh consecutive year, the World Economic Forum has declared Canada’s banking system to be the soundest
in the world.
Source: World Economic Forum
A great place to invest, work, and live
One of the most multicultural countries in the world, with world-class universities, a universal health care system , clean
and friendly cities. OECD’s Better Life Index shows Canada as best in the G-7 in terms of overall living conditions and
quality of life.
Source: Organisation for Economic Co-operation and Development
Why Toronto?
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Business capital of Canada
Solid and stable economy
With $323-Billion (20% of Canada’s GDP)
Consumer average salary: $70,000 (49,000
EU)/year
Competitive business cost
Population growth 100,000 (Toronto)
Globally, a tax competitive city & 4th in the world
by open opportunities
Integrated transportation system & North
America hub, strong business relations with Asia
and Europe
North America’s Top 10 in Sectors:
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Information & Communication Technologies
Life Sciences
Financial Service
Automotive,
Creative Sectors
Food and Beverage
Film and Television industries
Diverse market with immense growth
opportunities
Investment Required
• Time
• Follow-up
• Consistency
• Capital
• Market Research / Information Gathering
Business Facts
Taxed items
•
Airline surcharge tax
•
Gasoline Tax
•
Recreational Vehicle Tax
•
Air Conditioning Tax
•
Health Tax
•
Retail Sales Tax (HST)
•
Airline Fuel Tax
•
Hunting License Tax
•
Service Charge Tax
•
Airport Maintenance Tax
•
Hydro Tax
•
School Tax
•
Building Permit Tax, Cigarette Tax •
Interest Tax
•
Telephone Federal Tax
•
Corporate Income Tax, Death
Tax, Dog License Tax
•
Liquor Tax
•
Vehicle License
•
Luxury Taxes
•
Registration Tax
•
Driving Permit Tax
•
Marriage License Tax
•
Vehicle Sales Tax
•
Environmental Tax (Fee)
•
Medicare Tax
•
Water Tax
•
Excise Taxes
•
Personal Income Tax
•
Watercraft Registration Tax
•
Federal Income Tax
•
Property Tax
•
Workers Compensation Tax
•
Federal Unemployment (UI)
•
Prescription Drug Tax
•
Fishing License Tax
•
Provincial Income and sales tax
•
Food License Tax
•
Real Estate Tax
Business Facts
Tax ladder
for Individuals in Ontario
Federal Income tax
•
15% on the first $43,953 of taxable income
•
22% on the next $43,954 of taxable income (over $43,953 up to $87,907), +
•
26% on the next $48,363 of taxable income (over $87,907 up to $136,270), +
•
29% of taxable income over $136,270.
Provincial Income tax
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5.05% on the first $40,120 of taxable income, +
9.15% on the next $40,122, +
11.16% on the next $69,758, +
12.16% on the next $70,000, +
13.16% on the amount over $220,000
Business Facts
GST
• Applies to the supply of most goods and services in Canada
• Harmonized sales tax (HST) applies to the same base of
property & services as the GST. HST is imposed in provinces
that have harmonized their provincial sales tax with the GST;
these provinces are referred to as the “participating provinces”.
• The participating provinces are New Brunswick, Nova Scotia,
Newfoundland and Labrador, Ontario and Prince Edward Island.
• In the remaining provinces and territories, GST is imposed on
taxable goods and services. In these provinces, there may also
be a provincial sales tax or a retail sales tax in place.
Business Facts
GST/HST
Rates by Province
Province
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland and Labrador
April 1, 2013 and subsequent
5%
5%
5%
13%
13%
July 1, 2010 to March 31, 2013
5%
12%
5%
13%
13%
Northwest Territories
5%
5%
Nova Scotia
Nunavut
Ontario
Quebec
Prince Edward Island
15%
5%
13%
5%
14%
15%
5%
13%
5%
5%
Saskatchewan
Yukon
CORPORATE RATE
5%
5%
26% for Foreign owned companies
5%
5%
Wages in Canada
Average Hourly Wages in Canada in 2014
Profession
Average Hourly Wage
Retail Sales / Sales Clerk
$14
Data Entry Clerk
$16
Bookkeeper
$18
Accounting Clerk
$19
Truck Driver
$22
Carpenter
$23
Executive Assistant
$24
Plumber
$26
Electrician
$26
Social Worker
$29
Architect
Minimum Wages in Canada 2015
Province
Effective Date
Wage Rate
Alberta
01-Oct-15
$11.20
British Columbia
15-Sep-15
$10.45
Manitoba
01-Oct-15
$11.00
New Brunswick
31-Dec-14
$10.30
Newfoundland and
Labrador
01-Oct-15
$10.50
$32
Northwest Territories
01-Jun-15
$12.50
Registered Nurse
$35
Nova Scotia
01-Apr-15
$10.60
Physiotherapist
$36
Computer Engineer (not
software)
Nunavut
01-Jan-11
$11.00
$37
Ontario
01-Oct-15
$11.25
Lawyer
$42
Computer & Info Sys Manager
$42
01-Jul-15
$10.50
Engineering Manager
$46
Quebec
01-May-15
$10.55
Dentist
$75
Saskatchewan
01-Oct-15
$10.50
Yukon
01-Apr-15
$10.86
Lawyers (Downtown Toronto)
$800
Accountants (Partner Billing)
$300-$500
Prince Edward Island
Payroll structure
Payroll Deductions
• Canada Pension Plan (CPP) (max rate: $2564)
• Employment Insurance (EI) (max rate: $911)
• Employer Health Tax (EHT) (1.95% after $450,000 annual wage)
• Provincial Healthcare
• Federal and Provincial Income Tax
Opening a Business
EASIEST
RANK
New Zealand
1
Australia
2
CANADA
3
Singapore
4
Macedonia
5
Hong Kong
6
Georgia
7
Rwanda
8
Belarus
9
Ireland
10
Ranking is the average
of the economy’s rankings on:
• procedures
• time
• cost paid-in minimum capital
for starting a business.
Source: Doing Business Database
Opening a Business
•
•
Canadian Concepts ~ SLO concepts
Terminology
– Sole Proprietorship ~ s.p.
– Ltd. ~ d.o.o.
– Inc. ~ d.d.
Provincial or federal?
- Ontario incorporation gives you legal stature in the Province of Ontario, while you can still do
business across Canada.
- Federal incorporation gives you legal stature across the country under federal rules, but you
are still liable to the provinces where business is executed
Please seek legal counsel the legal counsel to determine whether federal or provincial
incorporation is appropriate.
Liability considerations can be critical: consult an insurance broker to allow you to
understand your risks and to make informed decisions
ESTIMATED COST TO OPEN A NEW CORPORATION:
– Approximately $1500 (including lawyer’s fees)
Opening a Business
• Your Canadian corporation can work with your
third-party Canadian representative or
distributor and/or do business directly with
your Canadian/American customers
• An alternative to opening a Canadian
corporation is to purchase an existing
company in your field
Ontario Business Structures

Ontario incorporated companies required to have at least 25% of the
Board composed of Canadian residents

Companies required to have a minimum of one director

Directors are subject to responsibilities under environmental, fiscal,
health and safety & labour regulations

Companies can be opened in Ontario under the following form:
a)
Proprietorship (Canadian residents only)
b) Partnership (at least one Canadian partner)
c)
Incorporation (at least one Canadian director)
Banking
Overall Canadian Structure
• Dominated by 6 major “chartered”
banks
• BMO – Bank of Montreal, TD Bank,
Scotia Bank, RBC-Royal Bank of
Canada, National Bank, CIBC–
Canadian Imperial Bank of Commerce
• Schedule II Banks
– Foreign owned financial institutions
• Other Financial Institutions
– Credit Unions
– Insurance companies
– Subsidiaries of chartered banks
– Trust Companies
Labour Laws
Canadian federal and provincial labour regulations are
among the most advanced in the world
Labour regulations include:
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Employment Standards
Labour and Industrial Relations
Human Rights
Health and Safety in the Workplace
Privacy
Compensation and Benefits
Export Pathway – Box A
• Geographic
• Pathway
• $ Conversion
THINGS TO PLAN FOR:
• Shelf space at major retail chains
requires payment.  The more
premium the spot is, the more
expensive it is to rent.
• No payment is received until the
product is sold
• If the product doesn’t sell, the store
will ask you to take the product back
• Every step of the way needs to be paid
for
• Fluctuating Euro and Canadian Dollars
must be taken into consideration
The consignment model described is used in some distribution models (e.g. high value
items in the tens of thousand dollars and more, high volume retailers particularly with
new suppliers), but firm sales (i.e. firm order placed with or without a deposit, balance
paid on delivery and acceptance) on imported goods also occurs.
What will CETA do?
CETA will:
• remove customs duties
• help make European firms more competitive in Canada
• make it easier for EU firms to bid for Canadian public contracts
• open up the Canadian services market to EU companies
• open up markets for European food and drink exports
• protect traditional European food and drink products (known as
Geographical Indications) from being copied
• cut EU exporters' costs without cutting standards
CETA will also:
•benefit small and medium-sized EU firms
• benefit EU consumers
• make it easier for European professionals to work in Canada
• allow for the mutual recognition of some qualifications
• create predictable conditions for both EU and Canadian investors
• make it easier for European firms to invest in Canada
• help Europe's creative industries, innovators and artists
• support people's rights at work and the environment.
CETA will help European firms compete in Canada by:
• removing customs duties, which will lower the price Canadians
have to pay for European goods
• ending the need for expensive double testing is some areas
• making it easier for them to send maintenance engineers and
other specialists to provide:
 after-sales and related services
 support for equipment, machinery and software they sell
there.
Benefits of working together
Moving
• Canadian-centered network
• On-location businesses
Ahead
• Access to a wide pool of expertise
• Internal referral network
• Slovenian familiarity
2015
Your CSCC Membership Benefits
Grow
Expand
Moving
Ahead
Challenge
Basic Membership package:
• Grow your clientele via online directory at www.canslo.com
•Free access to all CSCC Programs
• Gain access to members & affiliates in Canada, Slovenia & USA
• Keep up-to-date via membership communication network
• Access to our Offers/Demand/Business Inquires forum at www.canslo.com
2015
How can CSCC Help
• Market Research industrial sectors & markets for investors
• Facilitating connection to government agencies & other
business organization
• Fostering business bewtween Canada and Slovenia
• Acting as an adviser to companies wishing to participate in
public tenders in Canada or Slovenia
• Providing consulting services: opening a new business,
legal regulations and more.
Moving
Ahead
*Priced by a special members rate. Not part of the basic Membership package.
2015
Areas of Expertise
• Consulting Services
• Market Research Services
• Advertising and Marketing options (including canslo.com
website)
• Introduction to the Canadian market
• Referrals to potential customers from our members’ business
networks
• Corporate Structure and options
• Legal Services
• Assistance with hiring local staff
• Accounting and Bookkeeping Services
• Tax-Related Services and Consulting
Moving
Ahead
2015
*Priced by a special members rate. Not part of the basic Membership package.
Connect with CSCC
Please contact:
Moving
Mr. Mark Dresar, Executive Director
Ahead
[email protected]
+1-647-980-7710
Mr. Andraz Nanut, Representative for SLO Companies
[email protected]
+1-647-763-6145
2015
Join the CSCC
Moving
OPEN FORUM
Ahead
www.canslo.com
2015
Questions & Answers
Moving
Ahead
2015