It is common for overseas companies to open branches in Canada, but it is also a very good choice for overseas companies to start a business and open a branch in Canada.
The so-called divisions of the company only have executive functions and are completely obedient to the headquarters. They have no right to start new businesses on their own. This is exactly what Chaochao wants to do at the moment. He is not yet middle-aged and has already retired. Secondly, the management of the branch is only responsible for reporting all operating conditions to the head office, taking orders from the head office, and the head office is responsible for all funds and losses. For Chaochao, who has no business experience for a day, it is actually in the interests of the company not to have management rights. At the same time, since the entire operation model of the branch is synchronized with the head office, it is basically an overseas clone of the head office. Setting up a branch first actually helps the company to open up the local market and promote its own brand. On the contrary, if a branch is established right away, the business and management will not be synchronized with the parent company, and it will be difficult to promote the parent company. Take TD Bank, the largest bank in Canada, for example. Since there are branches everywhere, it is convenient for customers to go to handle business. At the same time, it also uses its presence to advertise itself. For companies interested in entering Canada, opening a branch can enhance overseas recognition and lay a solid foundation for future development.
So what materials do you need to open a branch and what review steps do you need to pass? In fact, you only need to provide the business license, certificates and all relevant documents of the domestic head office to Chaochao, and find professionals. After the documents are submitted, it usually only takes 5 working days to be approved. However, I would like to remind you that any overseas company landing in Ontario must find a Canadian citizen or PR as an agent. Of course, requirements vary from province to province. For example, British Columbia has no agency requirements. If you don’t know anyone in Canada, consider starting in BC.
Although the advantages of division cannot be underestimated, there will also be disadvantages after it develops to a certain scale. Take tax as an example. Basically, all expenses and income generated by the branch are paid and processed by the head office. Since you cannot issue invoices independently, you naturally do not have to pay taxes to the Canadian government. However, as the business grows and the branch develops to a certain level, the head office will have full authority to remotely control the incoming and outgoing funds, which will inevitably affect efficiency. However, if you handle it yourself and issue invoices independently, each incoming account must first be taxed according to local standards. , and then pay domestic taxes together with the head office’s annual income. Being taxed twice is really painful, which is why many people turn to register subsidiaries after their branches become prosperous, and separate their business and operations from the parent company. This not only avoids being taxed twice, but also obtains benefits. Some level of local tax relief. We will introduce in detail the specific advantages and registration requirements of subsidiaries in the next issue.
Go to our official website to register a company by yourself.