Canada is hugely appealing to many US and global companies. It has a highly skilled labor force, nearly 900,000 tech talent workers, and an increasing number of major global tech companies are opening offices there. 

Unsurprisingly, companies are looking to take advantage of the favorable immigration policies and tap into Canada’s burgeoning economy. And while not every US company wants to set up a legal entity and open up an office there, others do. Indeed, there are benefits either way. 

This article explores the distinct advantages of having a Canadian office for US companies, and the benefits of leveraging a PEO for administrative support.

Four reasons US companies should open a Canadian office

Canada presents a compelling opportunity for US and global companies seeking to expand — from a skilled workforce to tax incentives. Here are some of the reasons why expanding into Canada makes sense from a business point of view.

1) Easier to cultivate company culture

Establishing a physical presence in Canada allows you to cultivate your company culture directly with your Canadian team. This can foster a sense of shared identity and purpose, attracting top talent who resonate with your values and enhancing talent retention.

Your Canadian team can become an integral part of the global business rather than merely a remote outpost, encouraging collaboration and synergy as you scale your Canadian operations or more generally as a business. For American companies, Canada will also be in a favorable time zone and geographically close, making it easy for your Canadian team to collaborate in person, fly in for meetings or client site visits, etc.

2) Greater visibility and control over business

With a local office and legal entity, overseeing your sales team’s P&L, effectively monitoring growth, and making informed decisions based on real-time data is much easier. This level of visibility allows you to optimize performance and capitalize on emerging opportunities in Canada, especially with a partner managing the more technical aspects of employment.

3) Global recognition 

A US company that’s big enough and wants a global presence may want to have its own office in Canada. This allows the company to be present in Canada, have a global footprint, and potentially be even more attractive to potential clients or investors. It signifies commitment to expansion and solidifies your brand as a global player. And as some of the largest global brands are moving into Canada, joining them is a surefire way to stay competitive and access a new market.

4) Financial incentives

Canada’s generous SR&ED tax credits offer significant financial advantages to companies conducting scientific and tech research and development within its borders. Establishing a legal entity allows you to tap into these credits, boosting your bottom line and fueling further innovation.

So, how do you open an office in another country without hiring a full team to manage the administrative aspects of running that office? By partnering with an expert professional employment organization (PEO). 

Working with a Canadian PEO makes opening an office in Canada easy

For US companies that want to expand into Canada, navigating the complexities of Canadian operations can be daunting. However, by partnering with a PEO, US companies can effectively streamline many aspects of their Canadian operations with tailored services that improve overall business productivity and efficiency.

A PEO provides comprehensive HR and business management solutions for small to mid-sized companies. They require the business to have a legal entity in the foreign country that they support, and then the PEO ensures smooth functioning of the business in that country. The legal entity itself, the employees’ liability, and their responsibilities remain with the foreign company.

Navigating the intricacies of Canadian HR and payroll can be a significant hurdle, from unfamiliar regulations regarding parental leave, sick leave, and overtime pay to complex payroll, tax, and Canada Revenue Agency submissions. Fortunately, a Canadian PEO ensures that business operations seamlessly comply with Canadian law while alleviating the burden of becoming experts in unfamiliar territory.  

A Canadian PEO minimizes risk, reduces administrative burdens, and frees up the US company’s resources to focus on growth and strategic initiatives, hire top tech and sales talent and otherwise make the most of their Canadian presence.

Syndesus can help open and manage your Canadian office

Syndesus, a Canadian company with extensive expertise in managing Canadian operations for US and global clients, can provide a streamlined, comprehensive PEO solution, whatever the situation.

Syndesus helps companies with PEO services, including immigration, benefits, HR, and payroll. Your administrative processes are taken care of while you focus on expanding your workforce and moving your company forward.  

Reach out to us to learn more about how we can help you!