|
WHY
COMING TO CANADA IS YOUR BEST INVESTMENT and
Why Indian company should set up presence in Canada.
If
you are an Indian/foreign company interested in the U.S. market, here
are some excellent reasons to set up your manufacturing and research in
Canada.
- Research & Development Tax Credit Program. This is a
program supported by both the Federal Government and the Government
of Quebec which allows companies to reclaim a total of 70% of their
R & D expenditures, including an allowance for overheads and
materials used in that R & D.
- Economic Development Corporation, is another financial
support program from the Canadian government. There are several
aspects to this program , however the crux of it is this, EDC will
for the cost of 1% of your invoice price to your foreign customer,
insure your receivable up to 90% of its value. In other words, if
your foreign client does not pay you what they owe, the Canadian
government does. EDC also will take equity positions on deals between
Canadian companies and Foreign ones.
- Another program, allows you to visit trade shows and
reclaim 50% of all your costs including air fare, hotels, meals, and
car rentals.
- Another program will pay up to 50% of the cost of
brining foreign buyers to Canada to visit your facilities and meet
with you.
- NAFTA under this free trade agreement, Canadian
manufactured goods can go into the U. S. duty free. It should also
be noted that for a product to be classified as Canadian, 60% of the
cost of that product must come from Canada.
Now take the case of an electronics company. Components are
purchased in the Pacific rim and imported to the Canadian corp. that
assembles, tests and packages the product for sale in the U.S.
The components are often in expensive and will fall into the
40% cost of product category, allowing the finished product to be
deemed as “Made in Canada” and therefore fall under NAFTA.
- Setting up a factory in Canada. Under a program with the
DBC or BDC ( Development Bank of Canada ) a company can get up to a
90% mortgage for the building of a plant. Local areas outside of say
Montreal, will often have development programs that offer a company
, free cost of city services to the new plant, low or no taxes, or
tax holidays and other incentive programs for the new company to
locate their manufacturing center in these cities.
- The Canadian dollar verses the U.S. dollar. Currency
differences in favor of the U.S. dollar have fluctuated between
45-25% . This is just another financial incentive to companies
dealing in the U.S. market place. Your cost of manufacturing is in
Canadian dollars and you sell in U.S. The exchange is just another
addition to your bottom line.
THE
BOTTOM LINE
Canada
has over 1000 types of grants, from small business loans, to R & D
programs, to Export Development and Medical Research. Canada is one of the best kept secrets. It is the one place
on this planet where companies can have an edge over their competition.
If you take advantage of all of the financial support programs, it can
add immeasurably to your bottom line.
For More
Information about Canada immigration Please Contact :
Prashant
Ajmera & Associates
185
Brae brook Ave., Pointe Claire QC H9R 1V4 Canada
Tel: (514) 697 1597; Fax: (514) 697 9279 E-mail: pajmera@canadaimmigrationvisa.com
|
