Investing in E-business in Canada
Canada is well-established in its manufacturing activities, out of which computer accessories are a global brand. It is also considered as one of the main export items. So the E-business that starts with computer and ends with it definitely have a strong acumen in Canada. Canada’s effective fiscal measures introduced in the latest federal budget has provided Canada with a statutory tax rate benefit over the United States of 5.1%for manufacturing units by 2010?source KPMG, Competitive Alternatives, 2006.
Labor cost in Canada is lesser than any other market in the United States, where it has a cost advantage of 3.5% points for technical/professional workers and 6.9% for senior level professionals, source KPMG, Competitive Alternatives, 2006.
Persons computers owned by Canadians by 2002 was 487/1000 persons. It has increased almost in a double amount by 2006.And it is found that Canadians use the internet more than any other nation that is 512 people out of 1000 persons.
Canada is leading G-7 in broad- band or high-speed internet use. The value of E-business i.e. E-purchase by Canadians has raised 40% in 2003to $19.1B.The federal government has invested liberally in electronic infrastructure to provide adequate support for e-commerce and e-government. This is for the 5th time in row Canada has acquired the No.1 global position in e-government (accenture2005) and three quarter of internet traffic runs on Canadian telecom/IT machineries which essentially provide a supportive link for every provincial government.
Despite an overall world slowdown, GDP of Canada has grown up over the last seven years. The Canadian “technology” industry is showing a fast growth f than other traditional type industries. For example, Canadian ICT sector have shown growth three times better than the entire economy of Canada since the year 1997 (77% against 26%).
In Canada capital gains from the investments made with public limited companies where the investor owns not more than 25% of the company issued shares (directly or indirectly) are not subject to tax. Only dividends, interest and gains from ownership of private property are subject to tax. In this context if an investor (domestic or foreigner) decides to invest he will be at his comfortable state of mind because of no extra business tax paying liability.
The World Trade Magazine has ranked Canada in the Top 3 for Investment and Trade Opportunities. Today, Canada can guarantee the intended or existing investors the overall lowest tax rate among developed countries and the most preferable R&D tax credit program among G7 countries. To truly welcome foreign investment, Canada has introduced many lucrative incentives schemes to ensure the success for new businesses.
With all these advantages in backdrop there are a few more reasons to invest in Canada:
- Availability of smart and high skilled work force.
- A liberal attitude to welcome any outsiders who intends to come with professional attitude.
- Supportive fiscal policy.
- Unique advantage provided by NAFTA
- Cost-competitive market.
- Well-coordinated transport system
- Smart-border policy.
- A unique infrastructure: Canada has ranked no1 in the Economic Intelligence Units’ global business ranking for 2004-2008.
These are the main reasons for the investment in Canada and thus proved E-business as trustworthy segment for investment.