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6 Reasons to Start a Canadian Branch Instead of Just Hiring Contractors

Oct 29, 2020 | Business, Remote Work

For any company looking to expand its services and boost benefits from hiring unique skills, the process of recruiting the best individuals can be challenging and overwhelming. However, if you’re a company from outside Canada, especially if a technology brand, and you’re looking to ensure your customers in Canada are satisfied, there are two options worth considering: hiring contractors or starting a Canadian branch.

Hiring contractors for your business expansion, including in Canada, has its benefits like getting started immediately, no long term commitment, lower risks, and being saved from the hustle of understanding local employment and tax laws.

When it comes to starting a branch as an alternative for business expansion, most companies will want to start small by hiring one or two people, monitor how the business goes, then gradually expand the employee pool if the business picks up.  

Both options are excellent for your business, and none has superior benefits compared to the other. It all depends on the company’s business strategy for expansion. At BrightR Limited, our solution provides the best of both worlds for your business expansion in Canada.

In Canada, unless an outside company has several people they want to hire from the onset, most often avoid starting a branch.

The purpose of this post is to highlight the top reasons you may want to consider starting a branch here in Canada.

Finding the Right Remote Talents

For any company, having a team of talented people in a new geographical location is one of the best steps to being ahead of competitors in almost all areas. Whether your company is looking to work with experienced and versatile freelancers or full-time Canadian workers, the best way is to ensure you have started a branch that will help you vouch the best talents to boost your brand’s success once they come on board.

Increasing a Pool of Job Candidates

Expanding your brand’s market means working with people who know your host country’s market’s ins and outs. As such, starting a branch in Canada based on your company’s size may help increase a pool of job candidates.

In a way, offering job opportunities to the locals can build an identity for your company and may boost sales when it is seen as being interested in local empowerment. Additionally, local partners and investors are keen to engage with brands that seem to prioritize local interests.

Excellent Level of Control Over Your Business

One thing is for sure; you need to have a precise control strategy over your company’s success. You need to know which areas need help and which ones are running successfully. As such, starting a branch will ensure you control the activities happening far from the parent company.

Effectively Reduces the Cost of Running a Business Based on Locations

The cost of running a company’s business based on location is typically a significant factor to consider. For a company that works with a larger Canadian remote team or has many hired contractors, it may be more cost-effective to start a branch. This is because there is no share capital requirements involved.

Additionally, starting a branch may be cheaper when you consider maintenance costs of company’s equipment.

It is worth mentioning that this point may not apply for companies starting out small.

Helps Expand Company Recognition

While this may sound obvious, most people, especially Canadian customers, trust companies they know or have heard about.

Opening a branch abroad can bring significant benefits from increasing your company’s visibility to reducing business risks. A branch offers visibility and brand exposure, which can positively influence your company’s profits.

Additionally, a branch will reduce the risks of running your business in the host country or a given geographical area by: i) giving you a chance to test products in your new markets; and ii) allowing you to do extensive research about your target customers. This is typically hard and expensive when you hire contractors.

Excellent for Considering Business Time Zones

A branch will ensure your company’s activities are carried out in the right time zone of the remote place you’re located. Without a Canadian branch, time zones can become a major hindrance to how you interact with customers and even knowing the right time to make sales and more.


If you’re thinking about setting up a Canadian branch and would like more information, advice, or top tips, contact us.

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