Calgary gained its present status because of growth in the oil and gas industry. The once popular “Cowtown” is on its way to usher in a new era of innovation by welcoming new investments. The latest announcement of Opportunity Calgary Investment Fund worth $100 million makes Calgary a perfect destination for new tech companies. Besides being in Canada, which is a suitable destination for new business, here are the most valid reasons tech companies should focus on Calgary as a promising destination to set up the business.
The simplicity of corporate tax laws and the lowering of the tax rate for small businesses are the main reasons for Canada’s prominent position as a go-to destination for businesses. As of 2022, the net tax rate for small businesses is 9 percent. It is besides Canada’s reputation as the fastest-growing economy in G7 nations.
Tech companies can leverage Canada’s Research and Development incentives, which are among the best in the top industrialized nations. Small businesses can benefit from several tax deductions in Canada to set up an innovative startup.
Canada’s stable banking system and government offer a supportive environment to start and do new business. Canadian banks have a reputation for being among the most stable financial institutions globally. These factors are essential for the growth of new companies. Entrepreneurs need not struggle with economic or political instabilities.
Healthcare expenses to cover employees’ health are significantly lower than in the US, where employers must cover all healthcare expenses. Canada has well-established provincial healthcare for basic healthcare needs. Employers can ensure additional coverage through relevant policies to bridge the gaps.
Small businesses drive Canada’s economy
Close to 98 percent of Canada’s businesses drive Canada’s economy, having less than a hundred employees each. Small businesses have a noteworthy contribution to Canada’s prosperity. Calgary offers an excellent environment for small businesses to grow and boost the country’s growth.
Proximity to the US
The US border is just a three hours drive away from Calgary. Canada shares an extensive and symbiotic relationship with the US. It is an important advantage for tech companies as
they can explore the US markets without hassles.
Calgary supports STEM programs
Calgary is home to seven leading universities and colleges offering top-class education. These support STEM programs through 4,110 bachelor and higher degrees, boosting the proportion of STEM graduates, which is the highest in Canada.
Access to a world-class talent pool
Tech companies can source talent within Calgary, which ranks among Canada’s top five tech-talent markets. Calgary’s leading education system and track record promote its labor pool and the job market.
Calgary has excellent access to main transportation routes because of its location in Alberta’s southern half. One can catch direct flights to all Canadian cities besides Asia, Europe, and the US from the city’s airport.
Calgary boasts of comfortable commutes among major Canadian cities. LRTs, buses, and integrated road networks enable employees to reach their destinations faster.
Provincial tax benefits
Business owners in Alberta benefit from several tax benefits as exemption from payroll taxes, inventory taxes, and equipment taxes. Alberta raised the income threshold for the taxable income of small businesses and reduced the tax rate. We know these provincial tax benefits as “Alberta Advantage” in business circles.
Calgary has the second-highest ranking for overall satisfaction and a healthy lifestyle. New tech businesses will have myriad reasons to feel proud of calling Calgary home. Here are a few amenities that make Calgary a world-class city:
- Ample green space with several parks
- North America’s best network of bikeway systems and urban pathway
- Easy access to the Rocky Mountains
- Several world-class attractions besides sporting facilities
Reasonable cost of living
Despite being a major city, Calgary’s cost of living is lower than several major cities in Canada. Some major attractions of living in Calgary are the lowest personal and provincial income taxes and free health insurance. Alberta is Canada’s only province with no sales tax. You can purchase a home in Calgary at lower rates than in Toronto or Vancouver.