Market Research
The first thing you want to do if you’re considering starting a small business in Canada is some market research…. Are your business skills relevant on the other side of the world? The best place to do this these days is probably on the Internet, or through your Australian business contacts. Australia and Canada are pretty similar countries in the big scheme of things; though they do have pretty different coffee and doughnut standards; so most things you do at home will be relevant here. Another place that can help is Small Business BC, who has many services available to the entrepreneur including market research.
So once you have figured out that you may have a viable business opportunity in Canada you need to make sure that you satisfy the Visa requirements. Most small business take a while to get off the ground, so figure out if you will you need to be in Canada for longer than two years? If so, will you be able to get another visa? Or can you run your business from Australia? Will you want/be able to sell it? This may seem like a long-term problem not worth thinking about when you’re already confused about GST and PST. But is there any point doing all the hard work of setting up a business if it has a short time frame to be successful??
Setting up your business
Ok, if you have the visa sorted and probably a plane ticket already, or even on the ground in Canada, how do you set up your business? The first thing you need to do is decide on and register is your business name. If you are trading under your own name you do not have to do this step. Everything else needs to be approved and registered with the BC registry services. You can do this at Small Business BC, most One-Stop Business Registry locations or downloaded from here.
Next on the list is registering your business. If you are a sole proprietorship or a general partnership you can do this online using the One-Stop Business Registration Service or over the counter at any One-Stop location. If you decide to incorporate then you also need to file an Incorporation Application with BC registry services.
So once that is done you need to do a little bit of research into the GST (which is 5% in BC) and the PST, which is a new concept for Australians and stands for Provincial (remember Canada has provinces not states) sales tax (and is 7%). You may need to charge GST but not PST or vice versa or both or none… Aaaaaahhhhhhhhh to be honest I am still a little confused by this but to help you clarify the situation go to the Ministry of Small Business and revenue website and click on bulletins which will explain who needs to charge PST. If you do then you will also have to register with the ministry. Another way to find out is to ring the Taxpayer services info line at 1 877 388 4440.
To find out about GST go to the Canada Revenue Agency or call 1800 959 5525. If you do not charge GST then you do not need to register and you can’t claim back the GST you pay on work related purchases. However you can then claim the full amount of your purchase against your taxable income. You can also register for the GST at the One-Stop online service.
Business number for Federal income tax & GST
You will need a business number for federal income tax; this is also your GST number if you need one. To get one, ring 1800 959 5525 or hit up the Canada Revenue Agency again.
Ok well done, you have some of the big things done; now you need to find a place to run your business from. Craigslist is a great reference for all types of real estate not just residential. You will also have to check that the place you find is zoned for the type of business you want to run. This can be done at the local council; and you will also have to obtain a business license from there. The Vancouver Business license office is at www.city.vancouver.bc.ca/
Some other things to keep in mind is your labour requirements, if you are hiring employees check out
and
Lastly for any other acts or regulations you need to research check out
Good Luck!!!!!!
Discuss this article in the CanAussie Forum
_________________________________
This article was written by Sarah Stranan, who has recently moved to Vancouver, BC and started her own Osteopathy clinic, Sarah Stranan Osteopathy in Kitsilano.
_________________________________
|
||||||||
