Comparing the Conditions for Doing Business in India VS Canada
India and Canada are countries known for their well-developed economies and stable political environments. Both nations encourage local and foreign investment and are known for the ease of setting up businesses. However, there are huge differences in culture, ways of conducting businesses, and other conditions so we need to understand which country is better amongst India vs Canada. If you are an investor, analyzing and comparing the conditions in India VS Canada will help decide which place is more suited for your type of business.
These are the significant factors that play an important role in businesses in India and Canada:
Location and Climate
India
It is the largest nation in South Asia and shares land borders with Pakistan, Nepal, Bhutan, China, Bangladesh, Myanmar and maritime borders with Sri Lanka, Myanmar, Indonesia, and the Maldives. It has good relations with all European countries, West Africa, West Asia, and East Asia. By investing in India, you get the advantage of access to all these ready markets. The Indian climate is mostly tropical with moderate temperatures suitable for farming activities, manufacturing, and other industries. India is rich in natural resources like coal, natural gas, manganese, and iron.
Canada
It is located in the North American continent to the north of the United States. It has Alaska as its neighbour in the west, 12 US states in the south, and shares maritime borders with Greenland. It has good trade relations with the United States, Mexico, Japan, China, South Korea, the UK, and other countries. Large parts of Northern Canada have a continental climate with harsh winters, while southern parts have a warmer climate. The climate suits industries, such as agriculture, energy due to the availability of oil and natural gas, manufacturing, services, and technology. Natural resources, such as natural gas, oil, crude oil, gold, silver, copper-zinc are abundant.
Suitable climate, access to both Asian and European markets along with an abundance of natural resources may India a better business prospect amongst India vs Canada. On the other hand, you can go to Canada if you want better businesses in America and more developed economies.
Prospects for Doing Business
India
The Indian government is very favourable towards regional and foreign investment and has simplified the procedures for forming companies. The transport and communication systems in India are world-class. The infrastructure is excellent with well-developed rail, road, and air transport systems. You can get young, skilled, and literate labour in India easily. Overheads are much lower in India, and business is very profitable with low operating costs. There is also minimum government interference in company formation procedures.
Canada
The nation has a high ranking for its ease in forming a company. It also has a very stable banking system that withstood even the recent European financial crisis. Canada has ready availability of a skilled and educated workforce. The nation has a reputation for low crime and poverty rates. It has excellent rail and road networks and international airports.
Tax System
India
The tax system is very business-friendly here with the introduction of the Goods and Services (GST) Tax. The streamlined procedure for filing tax returns takes only a couple of days to complete. The recent government policies for startups are very encouraging for new investors. There are several tax incentives and various schemes introduced by the government to lure investors.
Canada
The country has a progressive tax system, which implies that you pay more taxes as your income increases. It follows a self-assessment method considered to be an efficient system. The corporate tax rate in Canada is nearly 28%.
Industries
India
The most prominent sectors here are agriculture, iron and steel, jute, sugar, cement, insurance, petrochemicals, and banking. The new ‘Make in India’ campaign started by the government promotes the growth of startups and aims to make India self-reliant.
Canada
The main industries here are crude petroleum and natural gas extraction, wheat farming, gold mining, pulp, paper and paperboard mills, and coal mining.
Company Formation
India
Anyone can register a company within seven days in India. The procedure is easy and streamlined and easily done online
Canada
The entire process for forming a company takes only 4 to 5 business days. It involves only a single, simple, and easy procedure.
India and Canada are both known for their ease in doing business, and both nations encourage local and foreign investors by providing attractive incentives and schemes. You can compare the business potential of India VS Canada.
3E Accounting’ team of accounting and tax experts provide comprehensive company setup services, which help investors to start their businesses, register them, and comply with the essential regulations. Their experienced team handles all accounting, taxation, legal, and other matters related to business operations for you, leaving you to focus your energies on managing and growing your business.
