Why To Launch Your Start-Up In Toronto
As Canada’s largest and most populous city, it may come as no surprise that Toronto is a business and commerce hub for the country.
For international entrepreneurs looking to start a new business, Toronto is often looked over in favour of “classic” business centres like New York or London. However, Toronto offers unique advantages for start-ups and can provide an affordable foundation for your business with plenty of room to grow in its ever-expanding markets.
Cost-effectiveness is one of the largest advantages of building a business in Toronto. Globally, Toronto is one of the world’s most cost-effective cities, thanks to a lower corporate income-tax than its American competitors and the lowest overall tax rate of the G7 countries. The KPMG Competitive Alternatives 2016 Report ranked Canada higher than German, Japan, and the U.S. in terms of lowest business costs.
The Report also recognizes Canada as the number one country for lowest digital tax rates, meaning digital start-ups can flourish in Toronto. In particular, Toronto’s northern York region boasts the highest concentration of technology companies in Canada, including fifteen Fortune100 companies. Additionally, Canada is tariff-free for the manufacturing industry. If you are searching for a place for a tech or manufacturing start-up, Toronto’s affordability and tax advantages make it a competitively cost-effective location for your launch.
Toronto’s central location makes it a crossroads for business across Canada and North America. 60% of the U.S. population is only a 90-minute flight away from the country’s largest international airport, Toronto Pearson International Airport. Less than a day’s drive from Toronto are around 150 million customers and suppliers in the regional Greater Toronto Area.
Canada’s participation in the North American Free Trade Agreement and the Comprehensive Economic Trade Agreement between Canada and the European Union mean over $37 trillion in combined GDP is available to sell to internationally out of Toronto. Toronto is also the only renminbi trading hub in the Americas, establishing strong financial ties between the city and East Asian markets.
The Torontonian workforce is globally competitive and one of the greatest assets for local businesses. One sixth of Canadian workers are based in Toronto. The city’s multicultural heart brings in workers from all backgrounds and cultures, creating one of the most multilingual workforces in the world with over 150 languages spoken in Toronto.
Additionally, 64% of Toronto residents have earned a post-secondary degree, the highest rate in Canada, meaning Toronto’s workforce is highly skilled and educated.
Toronto is a city bursting at the seams with new investors and new companies. It is the fastest growing market in North America and one of the top twenty for the global start-up landscape. Toronto offers over 200 available funding opportunities for start-ups alone, almost 30 of which are dedicated toward pre-incubation start-ups. More than 50 accelerators are also available.
Whatever industry’s scene your business is looking to burst into, Toronto has the means to take your start-up from concept to flourishing business. Look no further for the city that will let your business hit the ground running.