Outlook for IT companies in Canada in 2024

March 15, 2024
Outlook for IT companies in Canada in 2024

Trade disputes, geopolitical conflicts, cybercrime and supply chain disruption – these factors will be the global risks of the next decade, according to global analytical agencies (Reuters, Bloomberg, Statistics Canada). In the face of general instability, Canada has become a place for diversification and expansion of high tech, electronics, software, digital industrial solutions businesses. Why are we increasingly hearing about IT companies “moving” to Canada? What’s in store for the software product development business in 2024? Investment consultants Filio Force Inc decided to put together their personal top answers for those thinking about scaling or starting their business in Canada.

IT business in Canada: easy and profitable

Canada is a country with a strong economy, flexible immigration policy, favorable conditions for investment and business development. The technology sector is rapidly evolving. The year 2024 promises to be a watershed year. The growth of AI and SaaS are becoming dominant trends, defining the future of business processes and innovation. Global IT investments will grow by 6.8% in 2024. Gartner forecasts double-digit growth in spending on corporate security. 

Canada is actively investing in research and innovation, supporting the development of new technologies, and attracting highly qualified specialists from different countries. This creates a favorable environment for IT companies seeking to be at the forefront of technological progress. Developers, web-designers, programmers have a chance to find a good job in Canada and stay here for permanent residence.

Benefits of opening an IT project in Canada

  • Low initial costs of starting a business
  • Low operating costs
  • Simple and gentle taxation regime for new businesses
  • Special visa support program for entrepreneurs and business owners
  • You can open bank accounts for your Canadian company anywhere in the world.

Company registration in Canada

IT company Filio Force helps register and develop IT projects of our partners in many countries around the world, including Canada. Our actions in promoting their business, staffing, software development, and reporting will also depend on how large the founders intend to enter a new market. Canada has been attracting IT startups for many years, so it is profitable to start a business here. Medium and small businesses receive comprehensive support under a number of programs. For example, bank deferrals of loan payments and minimal rates on loans.

The simplest possible business rules

Canada has simplified visa rules for startup founders (Startup Visa). Both Canadian legislation and the majority of financial organizations in the country provide optimal conditions for starting and developing your own business. Registering a business in Canada offers many advantages. You can develop and scale your own company without unnecessary complications, excessive bureaucracy and overwhelming paperwork.

Comfortable tax burden

The federal government of Canada encourages job creation and investment. Investment Tax Credits (ITC) for IT companies are available through the Research and Experimental Development (SR&ED) Program. 

ITC is applied to reduce tax. Newly established companies are exempted from capital gains tax on a one-time basis. Moreover, companies can make internal investments from pre-tax revenues and legally pay no tax in the first years of their development. Such cost optimization allows generating more profit and investing it in new developments.

Low cost of business registration

Before registering an IT company in Canada, the owner must decide whether his or her firm will do business federally or only in a particular province. The total cost of registering a company in Canada depends on the size and location of the business and can range from several hundred to several thousand Canadian dollars. To register a company, one needs a tax account, a registered office address and a business number (BN) (a unique business identifier). You can register a business in Canada as a private corporation (PC), a partnership (GP, LP, LLP) or as a sole proprietorship (SP).

Robust protection of intellectual property rights

IT business is closely related to the results of intellectual activity, which require an appropriate mechanism of protection against illegal actions of third parties. Canada has a strong intellectual property protection system. Trademarks, patents and copyrights can be registered through the Canadian Intellectual Property Office (CIPO).

Comfortable bank requirements

Canada’s banking system plays a vital role in the country’s economy. In the world of IT startups, flexibility and adaptability are important. This applies, above all, to banking services. And in this, Canada can give a head start to other countries. The procedure of opening an account does not take much time. The startup owner will need to provide: passport, proof of residence and a business plan. When starting a business in Canada, entrepreneurs can count on extensive financial support: from grants and loans to venture capital and crowdfunding.

Why customers and partners choose Filio Force

  • Consulting on scaling IT business in Canada: growth strategies, increasing profits
  • IT staff recruitment: outstaffing, dedicated development team, long-term partnership, individual service and optimization of staff processes
  • Starting an IT business in Canada: preparation of documents, registration, audit, comprehensive support
  • Strategic consulting: virtual 24/7 support, network of trusted partners, one-stop solutions
  • Full support for startups: hiring individual developers, solving specialized tasks, product launches
  • Development: software of any complexity, SAP, SaaS, MVP

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