INVEST TO SUCCEED. INVEST TORONTO.

INVEST TO
SUCCEED.
INVEST
TORONTO.
Invest Toronto is your connection to the global business opportunities found in
Toronto. Invest Toronto is responsible for attracting foreign direct investment
into the City of Toronto. We offer one-on-one consultations to businesses and
site selectors making global business investment decisions.
Our Services:
• Complimentary concierge service for businesses
• Answer all questions and enquiries on investment opportunities in Toronto
• Facilitate introductions with sector experts and all three levels of government
• Provide guidance on site location and selection
• Facilitate business-to-business linkages
• Provide industry and economic benchmarking analysis
• Connect clients to qualified professional service individuals
“Invest Toronto was instrumental in assisting Banco Monex in its initial stages of
setting up a Canadian business. Not only did they point us in the right direction for all
our set up requirements, they did so in a professional and personable manner. It was
a pleasure to deal with people who have the knowledge and passion to assist
international businesses in setting up new operations in Toronto.”
- John Curran, CEO, Monex Canada Inc.
Toronto: A Prime Location with Proximity to the U.S.
• Toronto businesses have
access to a North
American market of 480
million consumers with a
combined GDP of USD
$20 trillion
• The Canada-European
Trade Agreement will
provide access to an
additional market of 500
million consumers and a
USD $19 trillion economy
• 130 million people live
within a 500 mile radius
of Toronto
• New York, Chicago,
Boston & Washington
are all within a 90 minute
flight from Toronto
3
The Toronto Region at a Glance
Toronto: 4th
largest city in North America
Factor
City
Region
Population
2.8 Million 6.1 Million
Labour
Force
1.6 Million 3.4 Million
Number of
Businesses
99,060
216,820
Office Space
(ft2)
121
Million
175
Million
Retail Space
(ft2)
79
Million
177
Million
Industrial
Space (ft2)
252
Million
778
Million
Source: City of Toronto Economic Indicators, 2016
4
A City of Economic & Social Opportunity
Toronto’s Global Standing
PwC’s Cities of Opportunity
London
• In the Top 5 global capitals of finance,
commerce and culture (PwC, Cities of Opportunity, 2014)
• In the Top 5 for quality of intellectual capital and
innovation (PwC, Cities of Opportunity, 2014)
• In the Top 5 for ease of doing business
1,290
New York
1,235
Singapore
1,230
Toronto
1,215
San Francisco
1,211
Paris
1,196
(PwC, Cities of Opportunity, 2014)
• 2nd in health, safety and security of residents
and visitors (PwC, Cities of Opportunity, 2014)
• 2nd globally for transportation and infrastructure
(PwC Cities of Opportunity, 2014)
Stockholm
1,191
Hong Kong
1,156
Sydney
1,153
Chicago
1,133
Source: PwC, Cities of Opportunity, 2014
5
Toronto: 4th Largest City in North America
Toronto makes Forbes’
Top 10 list of the World’s
Most Influential Cities
THE TOP 10 LARGEST
CITIES IN NORTH AMERICA
Forbes, 2014
Toronto ranks in the Top
10 most appealing cities
to live and work
1. Mexico City
2. New York City
3. Los Angeles
6. Houston
7. Havana
8. Montreal
4. Toronto
5. Chicago
Boston Consulting Group,
Decoding Global Talent, 2014
Toronto ranks in the Top 5
cities around the world with
the most job opportunities
PwC, Cities of Opportunity, 2014
9. Guadalajara
10. Puebla
A Powerful & Diversified Presence of Global Leaders
7
International Companies Choose Toronto
Cisco Chose Toronto
UbiSoft Chose Toronto
Ubisoft is a world renowned leader in digital
entertainment. Ubisoft chose Toronto when
deciding where to locate their new studio to
create AAA games such as Splinter Cell. This
studio was a major investment, creating over
800 jobs. Ubisoft’s decision was based on 4
key criteria:
•
•
•
•
Access to talent from the high quality
universities and colleges in the area
Strong presence of the film industry
Access to a multicultural workforce
Great business environment and
government support
For Cisco, Toronto had the right blend of
competitive business costs, world class
talent, and a strategic location to support
their new 108,000 square foot innovation
centre on Queen’s Quay in downtown
Toronto. This is part of their $4 Billion,
1,700 job commitment to Ontario and the
Toronto region. Cisco chose Toronto for
its:
•
•
•
•
Highly educated workforce
Strategic location and time zone
Urban lifestyle to attract the right talent
Superior tax environment for business
Toronto: Strong and Resilient Economy
• Soundest banking system in the world - 8 years in
a row (World Economic Forum, 2008-2015)
• During the financial crisis, no Canadian bank or insurer
failed and none required bailouts
• Since mid-2009, Canada has posted the fastest
employment growth in the G-7, recouping all of the jobs
lost during the recession
• Canada’s credit rating reaffirmed at AAA by Standard &
Poor’s and Moody’s Investors Service, making Canada
the only G7 country with a stable top credit rating from
both companies (Standard & Poor’s and Moody’s Investor Service, 2014)
Financial Services Employment by
Segment in Toronto
% of Total
Segment
Employment
Employment
Banking/
143,090
57%
deposit-taking
Insurance
50,220
20%
Securities/
Investment
55,150
22%
Services
Other
2,950
1%
TOTAL
251,410
Source: Statistics Canada Labour Force Survey, 2014
“As one of the world’s top ten international financial centres and the second largest in North America,
Toronto’s success is due in large part to the strength, resiliency and continued growth of its
financial industry, which serves as the economic anchor for our excellent talent base, enviable quality of life,
and highly competitive business environment.”
- Janet Ecker, President & CEO, Toronto Financial Services Alliance
9
Toronto: First RMB Trading Hub in the Americas
Leveraging Toronto’s strengths as the country’s
financial hub, Toronto was chosen as the first Renminbi
(RMB) offshore trading centre in the Americas in
November 2014. Our well-developed financial
infrastructure, capital markets and risk management
expertise, strong economic relationship with China, and
the largest and growing Chinese population in Canada,
positioned Toronto as the ideal location for an RMB
trading hub.
This agreement will facilitate increased trade and
investment between the two countries, strengthen
Ontario’s and Canada’s broader economic relationship
with China, and further reduce business costs.
Toronto’s “Chinatown”
www.maryelizabetharmstrong.ca
10
Toronto: The Economic Engine of Canada
700
600
$304 Billion Economy
In 2014, Toronto’s economy grew at its fastest pace in four years and is predicted to
expand again by 3.1 per cent in 2015
2014 GDP in $ Billions
500
293
400
Toronto
Series2
Region
Provincial
Series1
300
200
304
312
301
202
100
112
33
0
Ontario
Quebec
Alberta
British
Columbia
Man./Sask.
Nova Scotia
Source: Metropolitan Outlook: Spring 2015, The Conference Board of Canada
11
A Diversified Regional Economy
Share of GDP (%)
by major industry grouping
Education, 6%
Personal Services, 2%
Health Care, 7%
Public Administration,
6%
Primary & Utilities, 2%
Business Services, 13%
Construction, 4%
Manufacturing, 8%
Real Estate, Rental &
Leasing, 14%
Wholesale, 5%
Retail, 4%
Transportation &
Warehousing, 3%
Financial Services, 18%
Information, Culture,
Entertainment &
Hospitality, 9%
12
Source: City of Toronto (Estimates as of 04/2015)
Toronto Has It All: Low Operating Costs
10 Year Average Annual Operating Costs
16,000
14,000
USD$
12,000
10,000
8,000
6,000
4,000
Taxes
Transportation
Utilities
Facility Lease
Labour
2,000
0
Source: KPMG Competitive Alternatives Model, 2016
13
Toronto Has it All: Competitive Business Taxes
• With the combined income tax
rate of 26.3%, our competitive
taxes are approximately 13
percentage points lower than
the U.S. average
• The general Federal/Ontario
corporate tax rate of 26.3% is
below the level of most G-7
countries
• The Federal/Ontario corporate
tax rate on manufacturing and
processing is 25%
• The Federal/Ontario small
business tax rate is 15.5%
Competitive Corporate Income Tax Rates
Ontario vs. Selected U.S. States, 2014
Ontario
Texas
26.5%
35.7%
Florida
38.6%
North Carolina
38.9%
New York
California
39.6%
40.7%
Rates are the combined federal corporate income tax (CIT) rates for 2014 based on information
and legislation available
Source: Ontario Ministry of Finance, 2014
14
Toronto Has It All: Universal Health Care
Universal Public Health Care Means
Competitive Labour Costs
Ontario employers enjoy health costs that are half
that of their counterparts in the United States. All
citizens and permanent residents in Ontario have
access to our universal health care system under the
Ontario Health Insurance Plan, which covers the full
cost of doctor examinations, medical testing,
emergency care, and hospital care.
Labour Costs Comparison, Per
Employee
Country
Average Per Employee
(USD$)
Canada
75,373
Italy
76,979
United Kingdom
82,517
Japan
83,050
France
83,387
Germany
88,921
United States
109,542
Source: KPMG Competitive Alternatives, 2016
www.maryelizabetharmstrong.ca
15
The Most Generous R&D Tax Credits in the G7
• Canada & Ontario combined have one
of the most generous R&D tax incentive
programs in the world
• 27.7% R&D cost advantage relative to
the U.S. (KPMG Competitive Alternatives, 2016)
• Available to qualified businesses of any
size, and applies to a range of eligible
costs that is broader than the U.S.
• Tax credits can be carried back for 3
years and forward for 20 years, and
there is no cap on the program
• Each year, the SR&ED program
provides over $4 billion in investment
tax credits to over 18,000 claimants
(Government of Canada, 2015)
SR&ED – Small and medium-sized
non-manufacturers 2014:
public, private or foreign-owned
R&D
Expenditures
at eligible
Ontario
R&D
research
Expenditures institutes
Gross expenditure
$100.00
$100.00
Ontario-10% OITC
($10.00)
($10.00)
Ontario - 20% OBRI Tax Credit
($20.00)
Ontario - 4.5% ORDTC
($4.05)
($3.15)
Federal investment tax credit 15%
($12.89)
($10.03)
Tax deduction (Combined Federal of
15% and Provincial of 11.5% = 26.5%)
($19.36)
($15.06)
After-tax cost of $100
expenditure
$53.70
$41.76
16
The Toronto Stock Exchange: A Global Leader
st
1
st
1
In Exchange-Traded
Funds (ETFs)
In Mining and
Oil & Gas
Originator of the
world’s first ETF
62% of the equity capital
raised globally for mining
nd
2
Great Entry
Exchange
In Listings
Unique feeder system
facilitates graduation from
2nd in the world by number
of listed companies
junior market (TSXV)
to senior market (TSX)
st
1
In Clean Technology
1st in the world by number
of listed renewable energy
& clean technology
companies
nd
2
In Technology
2nd in North America by
number of technology
companies
17
1st G20 Nation to Become a Tariff Free Zone
The Government of Canada has
eliminated all tariffs on
manufacturing inputs, machinery and
equipment. Canada is the first
country in the G20 to do so.
Source: Government of Canada
18
Toronto’s World-Class Talent: Ready to Work
• Toronto’s stable labour force with low turnover rates places it in the Top
3 cities in the world for recruiting, employing and relocating employees
(Aon Hewitt, 2013)
• 4 Universities and 4 Colleges with 260,000 full-time students annually
• Educated workforce – 67% of Ontarians have completed postsecondary education, more than any other OECD country
(Invest in Ontario, 2015)
• Canada’s workforce is the most highly educated among members of the
OECD (Invest in Canada, 2016)
• Toronto is a leading choice for international students
Ontario College of Art and Design University
in Downtown Toronto
“We love the culture in Toronto. It is really similar to our Auckland and
Melbourne offices in terms of location, neighbours, and people. There are
exciting, positive, educated, and lovely people to work with and employ. We
love it here!”
- Vaughan Rowsell, Vend Founder and CEO
19
Toronto’s Diversified Labour Force
% Foreign-Born Population
51%
40.0%
34.4%
30.8%
22.6%
18.7%
17.7%
17.3%
16.3%
13.5%
8.6%
Source: Statistics Canada, 2013. National Household Survey Profile, 2011
Source: US Census Bureau, 2007-2011 American Community Survey
• Toronto’s foreign-born population is
by far the largest in all urban centres
in Canada, making it the country’s
most diverse and multicultural city.
(Statistics Canada, 2013)
• Toronto named the most multicultural
city in the world
(BBC, 2016)
• With a strong economy, magnificent
scenery and an excellent social
security system, Canada is a dream
expat destination.
(HSBC Expat Explorer Survey, 2015)
“Our richly multicultural society, comprised of people from all over the world, can help
you build and maintain ties in global markets.”
- Invest in Ontario, 2015
20
Canada: The Best Country for Business
Best Countries for Business
Bloomberg, 2014
• Canada ranked in the Top 10 in Forbes’ Best
Countries for Business 2015 report
Rank
Country
1
Hong Kong
2
Canada
3
United States
4
Singapore
5
Australia (tied)
5
Germany (tied)
“Canada is the No. 1 country in the world to do
business”
7
United Kingdom
8
Netherlands
- John Chambers, Chairman and CEO, Cisco Systems
9
Spain
10
Sweden
• Canada ranked 2nd out of 157 countries in
Bloomberg’s Review of The Best Countries for
Business, 2014
21
Doing Business in Canada is Easy
Number of procedures to establish a
business (1)
1
Soundness of banks (1)
1st
Lowest corporate income tax rates (2)
1st
Lowest business costs (2)
2nd
Red tape (3)
3rd
“I moved to Toronto almost 25 years ago
because I thought it was a great place to
establish a head office. In addition to being
a vital transportation hub, it provides the
location, people and infrastructure to make
any venture viable.”
Toronto lowest risk city in the world to
recruit, employ and redeploy workers (4)
3rd
Financial market sophistication (5)
3rd
Availability of financial services (1)
5th
- Robert J. Deluce, President and CEO,
Porter Airlines Inc.
Country credit rating (1)
6th
1) World Economic Forum, The Global Competitiveness Report,
2015-16
2) KPMG, Competitive Alternatives, 2016
3) Forbes Magazine, Best Countries for Business, 2015
4) Aon Hewitt People Risk Index 2013
5) World Economic Forum, The Financial Development Report,
2012
22
Toronto: A Great Place to Work and Live
In 2015, the Economist Intelligence Unit’s
(EIU) Liveability Report ranks Toronto in
the Top 5 Cities to live in the world, and the
EIU Safe Cities Index named Toronto the
best place in the world to live and the
safest city in North America.*
Economist Intelligence Unit
Liveability Report, 2015
97.5
97.4
97.3
97.2
96.1
94.8
94.7
94.7
94
93.5
92.6
92.3
91.1
90.5
Melbourne
Vienna
Vancouver
Toronto
Sydney
Montreal
Tokyo
Frankfurt
Berlin
Copenhagen
Munich
Paris
Chicago
Boston
Singapore
San Francisco
London
New York
*The ranking is based on a number of factors, including safety, liveability, cost of living,
environment, democracy and food security.
88.7
88.7
87.2
86.6
Source: Economist Intelligence Unit, Liveability Report, 2015
Toronto: A Forward-Looking Smart City
• Toronto ranks in the Top 10 Smartest
Cities in North America due to its
continued commitment to smart
densification with the ongoing
transformation of its waterfront area
(The Top 10 Smartest Cities in North America, Fast Company)
• Toronto named Intelligent Community
of the Year by the Intelligent
Community Forum at the New York
Summit (June 2014), for creating
inclusive economic opportunity and
improving competitiveness through
the use of broadband and IT in its
Waterfront Community
Toronto Waterfront
www.maryelizabetharmstrong.ca
24
Toronto Connects you to Business
Toronto’s Business Opportunities Bulletin Board: A free online
searchable listing of confidential prospects to help you expand into the
Toronto market.
Listings on the bulletin board are
divided into six broad categories:
1.
2.
3.
4.
5.
6.
Companies for sale (M&A)
Companies seeking equity investment
Company buyers/investors
Excess capacity
Joint venture and licensing opportunities
New ventures
For more information, please visit
www.toronto.ca/business-opportunities
25
Incorporating a Business in Toronto
Incorporation (Subsidiary)
Federally
Branch office
• 25% of a federal corporation’s board of
directors are required to be Canadian
residents.
• A branch is an extension of its nonCanadian parent corporation
• Federal corporation requires greater disclosure • A subsidiary, a federally or
provincially incorporated business,
and filing requirements.
is a separate legal entity from its
• Federal corporations can headquarter in any
parent.
Canadian province.
• The key distinction between a
branch and a subsidiary is that a
Provincially
branch is not a separate legal
• To operate in Ontario, corporations must
entity; the non-Canadian
either be registered federally or provincially in
corporation is subject to liabilities
Ontario.
incurred by the branch in Canada.
Additionally, the benefits of
• Professional corporations are only available
incorporating federally or
at the provincial level.
provincially do not apply to a
• Ontario corporations require 25% of their
branch office.
directors to be Canadian residents.
26
Business Visas/Immigration
Temporary
Toronto is a welcoming city for
immigrants to work and live
Intra-Company Transfer
• Permits international companies to temporarily
transfer qualified employees to Canada
Start-Up Visa
• Once the business is functional, the employee
• Enables immigrant entrepreneurs to
can apply for Permanent Residency as either a
launch innovative businesses that will
Skilled Worker/Professional or a Provincial Nominee,
create jobs in Canada and compete
provided that they have worked in Canada for one year
globally
Foreign Worker Process
• A positive Labour Market Opinion (LMO) is generally
• An applicant must secure a minimum
required to hire a temporary foreign worker if an
investment of $200,000 if the investment
Intra-company Transfer was not obtained
comes from a designated Canadian
venture capital fund or a minimum
Permanent
investment of $75,000 if it comes from a
Provincial Nominee Program
designated Canadian angel investor
• Ontario nominates individuals and their families for
group
permanent resident status based on a pre-approved
job offer in the province
Toronto is home to over
Skilled Workers and Professionals
• Applicants must have an offer of permanent, full-time
employment
100,000 new immigrants every
year (Statistics Canada)
27
Toronto Meets Your Business Needs
“We launched our business here and it gave us the opportunity to take our idea, grow it and
start to export it around the world. Now we’re in over 100 countries and selling to over
50,000 customers worldwide. And it all started right here in Toronto.”
- Paul Rowan, Co-Founder of Umbra
NAFTA (North American Free Trade Agreement) and CETA (CanadaEuropean Union Comprehensive Economic and Trade Agreement)
Market Access
World Class Talent
combined provide open access to 1
billion consumers with a
combined GDP of over USD $39 trillion
Toronto is a city of unparalleled diversity and talent. Over 51% of
Toronto’s almost 3
million residents were born outside of Canada
The Economist Intelligence Unit ranked Toronto as the best
Quality of Life
city in
the world to live and the safest city in North
America (Safe Cities Index, 2015)
Toronto is more
Competitiveness
cost competitive than any American
or European city surveyed, and it is 18.2 percent more cost
competitive than New York City (KPMG, Competitive Alternatives, 2016)
Global Standing
Toronto was named the #1 most reputable city in the world out of 100
global cities (Reputation Institute, 2015)
CONTACT
Invest Toronto
001 416 981 3888
[email protected]
www.twitter.com/invest_toronto
www.investtoronto.ca