Quebec is second Canada's most populous province. Its location, near important centres such as New York, Boston and Toronto, proved strategically beneficial to foreign investors and businesses.
When considering running business in Quebec, foreign companies must take into account the language, culture and legal system, as well as the various business structures that operate in this province.
Structure of business
In Quebec there are several forms of business structure, and each has its disadvantages and advantages. In order to make the best choice, consideration should be given to factors such as tax issues, investor position and the nature of potential commitments related to the planned economic activity.
Business sectors
There are many business sectors that successfully operate in Quebec and other locations in Canada.
Aviation industry
In the production and distribution chain in the aviation and space industries operates above 700 companies. Production and delivery companies provide more than 85,000 direct jobs and 109,000 indirect jobs, making Canada third the largest manufacturer of civil aircraft in the world.
Renewable energy
Canada has almost 10,000,000,000 square kilometres of significant renewable resources, covering water, biomass, wind, solar, geothermal and ocean energy. Manufactured 89 gigawatts, 64% electricity comes from renewable sources, ranks Canada on fifth a global location in terms of renewable energy efficiency. The sector offers opportunities for technology development, fuel supply, production, storage and distribution.
Bioproducts
Canada has about 190 companies offering biochemicals, biomaterials, biofuels or bioenergy. Canada's investments in research and development, highly skilled labour and biomass reserves are among the largest in the world.
Information technology
This industry includes companies that design computer systems, create software, process and host data and related services. Compared to other countries G7, The Canadian software industry can boast the lowest cost of research and development, operating costs and labour costs. In addition to a highly skilled workforce, Canada has a very successful education system that trains people to meet the demands of the industry.
Montreal, Quebec's largest city, attracted a record amount 1,800,000,000 CAD of foreign investments In the first half 2021 (40 projects from 13 countries), which represents an increase in 33% compared to the same periods In 2020 and 2019.
Due to the pandemic, meetings with business investors were held online, with an emphasis on the United States and France. It was a success by giving 15 projects from the United States and 11 from France. As a result 48.6% all investments came from North American companies, and 47.5% European companies.
"The search for foreign investment is part of a solution to ensure a rapid and sustainable recovery of the Quebec economy," said Pierre Fitzgibbon, Minister of Economic Development and Innovation.
Government grants
In order to encourage foreign investment in the economic recovery, the Quebec government has announced financial assistance of 8,500,000 CAD for Montreal International and Québec International. These.
two Organisations coordinated by Investissement Quebec International aim to convince foreign companies or their subsidiaries already established in the Montreal and National Capital regions to invest in Quebec.
And so Montreal International was able to attract above 2,000,000,000 CAD in foreign investment despite the pandemic, and Quebec International provided 736,700,000 CAD in economic benefits, including 324,000,000 CAD in direct foreign investments.
Strong currency
Of all currencies in G7, Canadian dollar is the best in 2021. Douglas Porter, chief economist and managing director of the BMO Financial Group (Bank of Montreal), believes that Canadian dollar strength will continue to be supported by solid Canadian trade in certain goods such as wood, copper and wheat, with exports of goods reaching record levels recently.
two official languages
To operate in Quebec, it is important to understand the relevant rules. In Canada, companies have to comply with provincial regulations that may vary according to jurisdiction, and with federal rules in force throughout the country. Quebec also has a single right: Bill 101, The French Language Card. Quebec remains a Canadian bilingual champion. According to the Conference Board of Canada report, bilingualism is an even greater asset outside Quebec.
Tax considerations in Quebec
Companies wishing to operate in Quebec need to consider several tax issues.
In addition to complying with the Canadian Business Corporations Act, they must respect the corporate tax system in Quebec, governed by the Tax Act (Québec) (TA) and its provisions, as well as the sales tax system subject to Quebec's Sales Tax (AQST) and other Quebec laws.
Although TA and AQST are similar to the applicable federal tax rules, each has its unique characteristics regarding income tax, sales tax and salary deductions. Given all this, Quebec has a lot to offer companies that want to expand their business to Canada.
However, his unique culture and laws make professional advice necessary before continuing his business.
About the author
Mylène Pontbriand Montreal, Canada
Mylène is a tax partner at FBL, a member company Russell Bedford Montreal. She joined the FBL 2011 after obtaining a master's degree in taxation. He is also a lawyer and from 2011 Member of Barreau du Quebec. Mylène specializes in corporate and personal tax planning, business relocation, mergers and acquisitions, and has special trust experience. As a partner at the FBL, he is responsible for tax and business consulting for private medium-sized companies from various industries.