Imagine that you keep all your funds in one place; in one bank, in one currency, in one company, and in one country. The probability of asset loss at any one of these points tends to be 100%. In order to minimize these risks as much as possible, experienced entrepreneurs are trying to build alternative options to create spare baskets.
One reliable way to do this is to register a company in Canada. And if this is done in a new business that is not related to your previous one, then perhaps you will get double stability for your assets.
It may seem complicated, but if we take into account all the risks associated with the changing legislation, the instability of local banking systems and foreign exchange markets, the distribution of risks between different countries, legal entities, banking, and tax systems becomes more than reasonable.
Asset privacy protection
One of the measures to protect assets is to increase the level of confidentiality.
If you register a company in Canada, you are not required to report it to the local tax authorities, as there is no automatic exchange of financial information with the Federal tax service. Moreover, if you spend more than 181 days a year outside your country, you may not report Bank accounts opened abroad, because in this case, you lose the status of currency residence of your country.
Tax savings for different sources of income
A strong reason for registering a foreign company in Canada is to protect assets from excessive taxation. This is especially true if you are looking at the prospect of 10-20 years in order to preserve assets for your heirs or for charitable purposes. This will allow you to ensure the long-term safety of people close to you and will serve noble goals, the achievement of which you will remain a long and good memory.
There is often a misconception about the tax benefits of international investment. Simply moving assets abroad does not mean that you no longer have to pay taxes. Nor does it mean that you are an international criminal. Your assets continue to operate and you are in the tax regime of the country of residence of your new company.
For example, when you register a company in Canada, you get the opportunity to virtually pay taxes in the first years of the company, investing profits in the development, research and attract the right specialists.
Moreover, if you operate outside Canada, you will not be taxed at all. At the same time, a company registered in Canada will not be recognized offshore anywhere and tax losses will be minimal.
Personal political independence and freedom to move around the world
Today it is very important to be able to express their views on important issues. The development of the Internet today makes it impossible today to speak out and remain unheard. However, the political capabilities of the state do not allow to do it without regard to business. That is why it is important to be able to quickly move to another center of interest.
Opening a business in Canada, you have the full right to apply for permanent residence and in the future for Canadian citizenship. This can be done as:
- A self-employed employee of a private company
- Investor in case you would like to buy an existing Canadian company
- Start-up entrepreneur by applying for a special Startup-Visa if you do not have free funds for a new project
Reduction of currency risks
If you open a company in Canada with a multi-currency Bank account or in any other country with a stable exchange rate, independent of the global hydrocarbon market and political risks, your assets are more protected against assets held.
There are other advantages that are either personal or depend on a specific market niche, but that will be a different story.