Employer of Record in Canada
There are several ways to establish a presence in the Canadian market. Of course, opening a subsidiary is inevitable if the volume of business justifies it; if our customers require us to invoice locally – in local CAD currency, with local taxes: GST/QST for Quebec, GST for other provinces; or if we need to hire an entire team on our own payroll.
However, there’s a much more flexible and less time-consuming solution, and that’s the Canadian “portage salarial” system.
Too little used, many companies open a subsidiary even before they have a significant sales volume on the market! This often leads to situations of pressure and stress, due to a lack of short-term profitability.
The advantages of freelance administration in Canada
Portage salarial involves using an existing legal structure to hire your local employees and collaborators on your behalf. The advantage of having your own local staff, hired indirectly through variable costs!
No need to understand local accounting and taxation, and no need to incur significant fixed costs for rent, management, additional reporting and complex consolidation between foreign subsidiaries.
You have your own employee on site, entirely dedicated to your development. You and he stay focused on your business, while we take care of the accounting, legal and social environment you need to operate. In this way, freelance administration in Canada directly boosts the performance of your teams and your international operations, which are no longer constrained by time-consuming and tiring business and administrative multi-tasking when it’s not their job.
This service has a cost, of course. Many of our customers entrust us with their sales manager or technical sales representative, whose comfort and performance far outweigh the cost of working as a freelancer in Canada.
Employer of Record VS Setting up a subsidiary
Employer of Record
Setting up a subsidiary
The collaborator you hire, whether a local employee or an expatriate, will contribute and pay taxes in Canada and in the chosen province (Quebec, Ontario, British Columbia…). benefit from the local health care system, retirement, unemployment, maternity/paternity leave…
Unlike I.C.V, portage is an excellent option for hiring senior and experienced profiles. You decide on the conditions of employment, the package offered, commissions and vacations, and we provide you with the vehicle you need to get up and running.
Think of the added value this presence will bring to your local customers? Having a local contact, in the same time zone, who speaks the same language, who answers on a Canadian “+1” telephone number…
Isn’t that a considerable advantage over the 3-4 business trips you’ll make every year to Montreal on the double, before flying back to Shanghai?
Your customers will be all the more confident and ready to make a lasting commitment to your products or services. You’re there, he knows your employee and can easily meet him physically when he needs to. In Canada, as elsewhere, this security and trust in your partner is a key to long-lasting, fruitful relationships.
Even if this solution is initially seen as a temporary, start-up solution, some of our customers see nothing but advantages in it and make it their long-term solution. We’ve been supporting their employees in Canada for over 4 years!
Some have sales in excess of €15 million in Quebec or Canada. There’s no need for them to add to their administrative and accounting burden with an additional! They see nothing but advantages in this Canadian freelance solution, with 100% of their staff efficient, profitable and fully fulfilled in their mission.
So, the real limitation of freelance administration is the need for local invoicing for your activities, especially if there is a production activity in Canada. It will then be essential to opt for the creation or buyout of a Quebec or Canadian entity (a solution that Groupe SALVEO can set up with you).
In the meantime, freelance administration is an excellent solution for positioning your company in the Canadian market in a cost-effective and flexible way, while enhancing your value proposition for your customers.
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