According to a recent report, Canada was ranked the second-best country to headquarter your business or open a new office. However, the COVID-19 pandemic presents several unique challenges for foreign companies looking to launch a new office in Canada. This is mainly because the pandemic has brought unprecedented uncertainties and changes in how governments and businesses operate. While setting up a new office during the COVID-19 pandemic in Canada can be challenging, it’s still possible with proper planning. Here are some of the ways you can open a new office in Canada during COVID-19:
1. Travel Restrictions and Immigration laws
Canada’s immigration laws are changing almost every day, mostly due to the COVID-19 pandemic, leading to travel restrictions and a more complex application process. As such, minor omissions and oversights can easily make your application rejected. As a result, your business plans are negatively impacted or delayed.
However, you can increase your chances of moving to Canada by employing industry experts’ services to guide you through the entire application process. It’s also crucial that you adhere to all laid out protocols by the Canadian government.
2. Address Your Workforce Needs
To start a business in Canada, ensure your company can tackle variants that your workforce is likely to face. This includes identifying ways to support the remote working of your employees.
If you need some employees to relocate to your new office, you should, for instance, review HR policies and various travel rules to ensure a smooth process. You also should have a remote working plan if you need them to relocate or work remotely. Besides that, make sure that your ICT infrastructure can support remote working during the pandemic.
3. Create a Crisis Management and Response Plan
The rapidly evolving and unexpected changes caused by the COVID-19 could have a significant impact on your business. To ensure your business survives the crisis, you should immediately develop a robust business continuity plan and enhanced communication channels to effectively communicate with stakeholders. Find ways to meet the requirements of the government to lower the chances of business disruptions.
4. Focus on Finance and Liquidity
Due to the negative impact of COVID-19 on the economy, most businesses are experiencing reduced cash flow. As such, you should have a plan to manage cash and preserve liquidity.
Some of the things you can do to achieve this are forecasting the impact the crisis could have on your cash position and revising it often, and improving net working capital accordingly. Also, you need to plan for financial reporting concerns that may result from the pandemic, identify alternative financing options, and assess opportunities for tax relief.
This way, you’ll be able to forecast cash flows and scenarios and be able to make intelligent business decisions in an increasingly changing environment in a new office.
5. Supply Chain and Operations in a New Office
While the ripple effects of the pandemic can be difficult to assess, you can mitigate your business’ supply chain distributions. As new coronavirus cases continue to emerge, assess scenarios, identify alternative suppliers, and consider using alternative pre-approved parts and price-adaptation strategies.
6. Tax and Regulatory Compliance
Canada is known for its transparent and favorable bureaucratic policies, government practices, and tax environment. However, navigating risk and regulatory complexity in these uncertain times requires your tax function to account for the wider political, economic, and societal aspects. This can help you make informed decisions and stay compliant with taxation and regulatory systems.
You need to manage cash flow effectively, address immigration hurdles for your workforce, and evaluate resources your business needs to meet direct and indirect tax requirements compliance.
Find a New Office in Canada During COVID-19
The impact of COVID-19 has affected both huge corporations and small businesses in tremendous ways. Do you own a foreign company and want to open a new office in Canada during COVID-19? Contact us today, and we’ll help make the process seamless and hassle-free for you.