Doing Business in Canada - final presentation

Doing Business in Canada

25 July 2014

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Doing Business in Canada2014

Mark Newlands

Int. Sector Head T&E, CI, CON

Scottish Development InternationalScottish Development International

Welcome &

Keynote speech


Key Facts

• Second Largest country in the World

• 10 provinces, 3 territories

• Area; 9,971,000 Sq Km

• Population; 34.6 Mn (2011)• Population; 34.6 Mn (2011)

• Capital; Ottawa

• Official Languages; English & French

• GDP (USD Bn); 1,821 (2012)

• Inflation rate: 1.5

• Doing Business Score; 19 out of 189


• Low population density with a vast wealth of natural resources

• 11th biggest economy (IMF –2012)

• Stable & Progressive

• Parliamentary democracy with 3 parts: the Crown, the Senate and the House of Commons

• Strong trade relationships with the UK

• Approx. 15 Bn GBP Trade between Canada and the UK

2012)

Economic Climate

House of Commons

Political Climate

Trade relations

Canada – EU Trade Agreement (Approval Pending) will remove over 99%

of tariffs between the two economies and increase bi-lateral trade. It is

predicted that this deal will inject £1.3bn in to the UK economy.


Scottish Development International’s offices in Canada

� Internationalisation of the Scottish

business base through international

trade development & export

� Contribute to wider international agenda.

� Office re-established in 2011.

� Two offices – Toronto and Calgary.

� Americas Director based in Toronto

office.


How can we help?

� Business Networks

� Governmental Contacts

� Industry Associations

� Trade Missions

� Ongoing support and Guidance

� Specific Sector Connections


Brian Parrott

Minister Counsellor and

Senior Trade Commissioner

High Commission of Canada

Economic overview &

Market opportunities

Doing Business in Canada25 July 201425 July 2014Brian Parrott, Senior Trade Commissioner, High

Commission of Canada

10

1000 km

500 km

St. John's

Calgary ReginaCharlottetown

Edmonton

Québec

11

Mexico City

Los Angeles

Denver

Houston

Atlanta

Seattle

Miami

New York

Boston

Philadelphia

WashingtonBaltimore

DetroitChicago Cleveland

St. LouisPittsburgh

Milwaukee

San Francisco

Calgary

Vancouver

ReginaHalifax

Toronto

Montréal

WinnipegCharlottetown

VictoriaOttawa

Windsor

Fredericton

Population Growth, 2006-2011

12

Population Observed (1971 to 2009) and Projected (2010 to 2061), 3 Scenarios

Overview

• Canada’s Economic Outlook-positive but fragile:

– Modest growth and unemployment reducing

– Moving to balanced budget/Debt to GDP low

– Concerns: Low Inflation; Consumer Debt; Commercial

13

– Concerns: Low Inflation; Consumer Debt; Commercial

Real Estate

• Provincial Economies Differ

• CapEx projects – public and private – massive.

– Resource sector, northern Canada, infrastructure

• Trade deals shaping exports and investment.

Economic Highlights

National Growth

14

Source: World Bank, October 2013.

2014 Real GDP by Province and Territory

Economic Highlights

15

Major Project - Highlights

• Billions of CapEx required for New Developments

• Public Infrastructure right across Canada

• Energy Infrastructure to diversify exports

16

• Energy Infrastructure to diversify exports

• Resource Development in Canada’s North

• Oil Sands continue to expand

• East Coast Energy picture changing

Top 100 Infrastructure Projects (Number of

Projects and Average Value, per Province)

17

Source: ReNew Canada Infrastructure Magazine, “Top 100 Canada’s Biggest Infrastructure

Projects”

Opportunity Highlights# of Hi-Rise Buildings in selected North American Cities

18

Energy Infrastructure(not including the Territories)

19

Source: Major Projects Management Office (MPMP), Government of Canada

Possible LNG Pipeline RouteCanadian Oil Sands &

Conventional Production Forecast

20

Shipbuilding

Ship Class (project

budget)

# of

vessels

Target Date for

Construction Contracts

Arctic Offshore

Patrol Ships

($3.1B)

Up to 8 2015

Combat Vessel Work Package (Halifax)

Ship Class (project

budget)

# of

vessels

Target Date for

Construction Contracts

Offshore Fisheries

Science Vessels ($244M)

3 2014

Offshore Oceanographic 1 2015

Non-Combat Vessel Package (Vancouver)

21

Canadian Surface

Combatants

($26.2B)

Up to 15 2018

Total value of

Combat vessel

package $29.3B

Total

number of

vessels:

Up to 23

Science Vessel ($144.4M)

Joint Support Ships

(Department of National

Defence (DND)) ($2.3B)

2 2016

Polar Icebreaker ($1.3B) 1 2018

Offshore Patrol Vessels

($1.9B)

Up to 5 To Be Determined (TBD)

Medium Endurance Multi-

Tasked Vessels ($1.4B)

Up to 5 TBD

Total value of Non-Combat

vessel package $7.3B

Total

number of

vessels:

Up to 17

ICT Clusters in Canada

22

• World Federation of Exchanges – TSE and TSX-V first in the world

among global exchanges by number of new listings for the 4th

consecutive year (2012)

• World Economic Forum - Canada’s banking system ranked

Financial Services

23

• World Economic Forum - Canada’s banking system ranked

soundest in the world six years in a row

• Bloomberg – 5 of the World’s 20 Strongest Banks are Canadian

(2013)

• Bloomberg - 3 of world’s top business schools are Canadian

(2013)

Toronto (14th)

• HQ for 2 of the world’s largest life insurers, 3 of Top 50 global pension funds, 7 of 10 largest global

hedge fund administrators, 123 securities firms and 9 of Canada’s Top 10 mutual fund companies

(AUM)

• TSE is the 3rd largest equity exchange in North America, and the 7th largest in the world with a

market capitalization of $2.0 trillion (2012)

• Over 224,000 employed, 15% of city’s GDP

Montreal (16th)

Global Financial Centres Index (March 2014)

24

Montreal (16th)

• 100,000 employed, 3000 firms, 10% of city GDP

Vancouver (17th)

• Over 55,000 employed

• HQ to HSBC

Calgary (22nd)

• Canada’s western financial and energy capital, 8,100 new jobs created over the past ten years, nearly

4,000 firms

• Concentration of capital-intensive companies, high deal velocity, large deal size, foreign investment

and individual wealth

Food Services

25

Canada- EU Comprehensive Economic and

Trade Agreement (CETA)

• 98% of tariffs will be eliminated on the 1st day CETA comes

into force.

• By comparison, only 29% of tariff lines were eliminated on

26

• By comparison, only 29% of tariff lines were eliminated on

the 1st day that NAFTA took effect

• CETA could bring a 20% boost in bilateral trade between

Canada and the EU and a $12 billion annual increase to

Canada’s economy.

� Strategic market intelligence on your specific sector

� Pathfinding for key government contacts engaged in

supporting investment in Canada, in its provinces and

territories.

At work in 150 cities around the world, Canada's investment and trade professionals can provide:

27

territories.

� Referrals to investment support professionals

� Facilitation of site visits

� Information and advice on how to set up a business in

Canada, taxation, regulations and government programs

� Assistance in developing a business case for your next

investment decision

For more informationContact us at

High Commission of CanadaHigh Commission of [email protected]

[email protected]

www.tradecommissioner.gc.ca


Gordon McClymont

Director Supply Management

Jacobs EngineeringJacobs Engineering

Doing Business in Canada&

Routes to Market


Vanessa McMinn

Associate

Fasken MartineauFasken Martineau

Canadian law and considerations&

Setting up a business in the market

DOING BUSINESS IN CANADA

Canadian law considerations

&

Setting up a business in the marketSetting up a business in the market

Vanessa McMinn, B.A., J.D.

July 2014

Disclaimer

We would caution that nothing in this presentation should be taken as legal advice.

Each fact situation can give rise to a different analysis and conclusion and we would caution against relying upon any material in this presentation to form a judgement on a given fact situation. situation.

Canada’s Government and Legal System

• Federal system of government

• Shared powers

• Regulation by any or all of the federal, provincial and municipal governments

Business Structures / Corporate Issues

• Canadian corporation

• Canadian subsidiary

• Canadian branch

• Others• Others

Tax and Other Considerations

• Branch or subsidiary

• Subsidiary

• Combined federal and provincial corporate income tax rate of 25% to 31%

• 10% to 15% withholding tax on dividends to parent corporation

• Branch

• Corporate income tax

• “Branch tax” (10% of after-tax income).

• Advantages and Disadvantages

• Repatriation of Profits

• Other taxes

Executive Transfers and Immigration

• Temporary Business Visits

• Work Permits

• Immigrating

Import Regulations

• Customs

• Duties

• Taxes

• Packaging and Labelling• Packaging and Labelling

Protection of Intellectual Property

• Patents

• Trade-marks

• Copyright

• Assignments and Licences


Paul Clark

Projects Team ManagerProjects Team Manager

BE Group

Trade Mission to Canada 2014


Background

SDI Cross Sector Missions are aimed primarily at SMEs who are SDI Cross Sector Missions are aimed primarily at SMEs who are either new exporters or wish to develop and grow their business in a particular market.

It is not aimed at large companies or very experienced exporters who are already well established in a market. Although larger companies will still be considered.


Background

We are targeting between 10 and 15 companies for each of the We are targeting between 10 and 15 companies for each of the missions.

There is a set subvention grant for specific markets, covering travel and hotel costs.

The level of assistance available is a total of £550 per company.


Countries visited so far:

South Africa Nov 2012India Nov 2012USA & Canada Apr 2013Brazil Jun 2013China Sep 2013UAE & Qatar Oct 2013USA Apr 2014


Funding

• Funding is provided by UKTI’s MVS (Market Visit Support) service.• The MVS funding level depends on the destination.• The MVS funding level depends on the destination.• Funding is provided retrospectively.• We collect bank details and send the subvention direct to the

company.• No travel receipts or complex documentation is required. • The completed Mission Application Form and Mission Feedback

Form is all that is needed.


Benefits of attending

• Perfect introduction to market.• Perfect introduction to market.• Connect with SDI and further UKTI support.• Meet new customers.• Non-competitive environment.• Space for your own agenda / business meetings.• Pre-mission research / support can be provided.• Follow up support provided.


Mission to USA and Canada 2013“The whole market visit has been extremely inspiring and educational. I believe you

have given me more insight in the world of successful networking; furthermore I have

been introduced to the rules and diversities of the market and have been introduced to

relevant contacts. Thank you!”

Silvia Pellegrino, Chouchou

“The presentations regarding the regulations and tax implications of trading in “The presentations regarding the regulations and tax implications of trading in

different areas were very useful. The networking events were enjoyable and the

delegates experience very relevant.”

Keith White, SST Sensing

“The visit was well co-ordinated and provided a full itinerary for all attendees. There

were networking opportunities and an eclectic mix of potential contacts presented for

the wide spectrum of attendees.”

Arthur Rennie, Hawick Knitwear

12 Business participated - £6.25m of estimated new business


Trade Mission to Toronto,

Canada (Cross Sector Mission)

• Key sectors identified:

• Creative industries

• Construction

• Financial Services

• Food and Drink

• Software

• Target of 10-15 companies

• MVS Funding £400


Tuesday 25th NovemberArrival in Toronto

PM: Welcome drinks with SDI & delegation

Wednesday 26th November

Friday 28th NovemberAM: Free time for business meetings

PM: Networking lunch with

GlobalScots

EVE: Free time

Trade Mission to Canada, 25-29 November 2014

Wednesday 26 NovemberAM: Doing business in Canada briefing session

PM: Free time for business meetings

EVE: Informal dinner with delegation and

SDI Canada

Thursday 27th NovemberAM: Site visits and company tours (sector specific)

PM: Free time for business meetingsEVE: Business Networking Reception

Saturday 29th NovemberAM: Free Time

PM: Free Time

EVE: St Andrew's Society of

Toronto’s Annual St Andrew's Charity Ball

Saturday 30th NovemberDelegates Depart


For more information about any of our trade missions please speak to me today or email:[email protected]

I have further information about the trade mission that you can take with you todaywith you today

I also have application forms, should you wish to apply for a place on our trade mission

For more information:Paul Clark

[email protected] 4266333


Coffee break10 minutes10 minutes

(please sign up for one to ones at the entrance)


Case studies panel session

Real life stories & experiences shared


Graeme Reid

CEOCEO

Global Quantum

Case study 1

‘A Scottish Company With A

Global Reach’

• 1994: set up as a sole trader.

• 2003: Incorporated as a limited company

• 2012: Opening of Toronto & Calgary branch offices

• 2013: Restructured forming the Global Quantum

Company HistoryCompany History

• 2013: Restructured forming the Global Quantum

Group of Companies, operating in 7 countries, 40

employees.

What We Do

Quantity Surveying

Commercial Management

Contract & Procurement Management

What We DoWhat We Do

Delay Analysis &

Programming

Expert Witness

Claims & Dispute

Resolution

Where We Operate

Market Sectors

Gas & OilGas & Oil

Power & Power &

Building

New &

Refurbish

-ment

Building

New &

Refurbish

-ment

Power &

Process

Power &

Process

RoadsRoads

BridgesBridges

Water

Treatment

Water

Treatment

PipelinesPipelines

Why Canada?

• Shared Heritage between Scotland & Canada.

• Expanding Infrastructure, Gas & Oil

Why Canada?

• Expanding Infrastructure, Gas & Oil Markets.

• Existing clients operating in Canada, our business expands by referral.

• A demand for the skills our employees possess.

SDI Support Grants

• Business Support Grant - Canada

– A proportion of Travel, Hotel & Subsistence costs

– Legal Advice Only

SDI Support GrantsSDI Support

– Legal Advice Only

• Trade Missions – various locations in Canada

– Capped sum for Travel, Hotel & Subsistence costs.

• Support from SDI Toronto & Alberta Offices- Offering local contacts and general market advice

Facilitating The Process

• BDO – Chartered Accountants, Assistance with company structure and all forms of taxation

- [email protected]

- [email protected]

Facilitating The Process

- [email protected]

• Long Mangalji LLP – Immigration Lawyers, Assistance with work permits

- [email protected]

- [email protected]

• Invest in Market Research – Is there a need?

• Understand Canadian Geography

• Differing cultures among Canadian Provinces

• Work permit issues – Seek expert advice

Local Knowledge!

• Work permit issues – Seek expert advice

• 15% withholding tax for UK based companies

with Canadian branch office

• Working in Canada not North America

Get In Touch

www.globalquantum.com

Get In Touch

[email protected]

@Global_Quantum

Graeme Reid


Marcus Kneen

CEOCEO

Indigo Vision Group

Case study 2

IndigoVisionDoing Business in Canada

Intelligent Video Security IndigoVision is a market leader in managing large scale

and complex security installations around the world

The IndigoVision Difference

Image Quality

Provides absolute evidence

End to End

All products: one source

Powerful Software

Locate evidence in seconds

Open

Integration

Freedom to choose

Distributed Network

Architecture

No central server

Compression

Less bandwidth

Low cost storage

World Class Solutions for 20 Years

2014 – 7:1

IndigoVision - Global

• Local presence in 30 countries

• Selling to 86 countries

• 85% international exports

• UK HQ, leading technology, pure networked video • UK HQ, leading technology, pure networked video

• 180 Employees globally

� UK 80 employees,12 nationalities

IndigoVision – Global

Start

• Netherlands

Why?

• Common Heritage

• Culture• South Africa

• Australia

• Canada

• Culture

• Language

• “Thinking”

IndigoVision Canada Team

YT

NT NU

Glen HaleyGreater Toronto Regional Sales [email protected](647) 339 7740

NTNU

Chris AlbinEastern Regional Sales [email protected]

Area Sales Director – Sean Thompson

BC

AB

SK

MB

ON

NS

Hudson Bay

QC

NF

NB

[email protected](416) 707-4029

Jerry AdamsWestern Regional Sales [email protected](403) 473-4113

Matthew BorovoyCanada Sales Support [email protected]

IndigoVision- Canada Partners

IndigoVision - CBSA

• HD Cameras US-Canadian

Border Crossings

• Fast incident resolution

� Excellent recording quality

� HD detail

IndigoVision - City of Calgary• City-wide surveillance integrating city and police

surveillance

� Scalable solution

� Flexible integration

� Operational benefit, not just Security

CIBC Bank - Financial

Go Transit – Metrolinx - Transportation

IndigoVision Suncor – Oil & Gas

IndigoVision Shell – Oil & Gas

IndigoVision - Hydro One - Utility

IndigoVision Toronto Hydro - Utility

IndigoVision - Canada

Canada…

…A Fantastic Place To Do Business


Q&A panel session


End of event

1-2-1 sessions(15 min. each -

in the balcony and bar area)

(please sign up for 1-2-1s at the entrance)


THANK YOU!THANK YOU!


www.scottish-enterprise.com/international

Talk to an export adviser 0800 019 1953

Doing Business in Canada - final presentation

Education

world economic

low inflation

economic highlights

ship class

site visits

gmarjoribanksbdo

trade mission

north america