Government Grants for Companies Incorporated in Canada

Updated on Friday 14th June 2019

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Those who set up companies in Canada have many benefits, among them government grants being some of the most important. Just as important is to know that it does not matter if the company was registered by a resident or non-resident of Canada, as long as the company has a legal address here.

There are several aspects to consider when applying for grants offered by the Canadian government to companies established here, and one of the most important refers to the fact that there are various programs available.

Below, our Canadian company formation specialists explain what the main government grants for companies incorporated here are. If you need help in registering a company or accessing a grant, you can rely on our agents.
 

Types of government grants for Canadian companies


There are several types of grants a Canadian company can access. Among these are:
 
  • financing programs which are available based on the industries the companies operate in;
  • loan and capital investment grants which cover loan guarantees, venture capital loans and other types of financing options;
  • wage subsidies – companies can hire specialized workers and benefit from reductions related to their salaries;
  • funding for various industry clusters are also available for Canadian-based companies;
  • grants for starting a business in various domains of activity and financial assistance for certain activities in the company;
  • tax credits which are the most popular government grants offered to companies registered in Canada.
 
When deciding to access a government grant, it is advisable to ask for support in order to understand what the grant implies, as most of them have certain eligibility criteria. Our company registration consultants in Canada can help you choose the appropriate grant for your business.
 

Government grants for small businesses in Canada


Small businesses play an important role in the Canadian economy which is why the government is trying to support them through special grants and funding programs. The most important ones are:
 
  1. the Accessible Technology Program which provides amounts of money of up to 4 million CAD per year;
  2. the AgriInnovate Program which was designed for small companies in agriculture and under which businesses can obtain up to 10 million CAD per year;
  3. the AgriMarketing Program through which small and medium-sized companies can promote their products;
  4. the Alberta Export Support Fund and Innovates programs which target companies based in Alberta;
  5. the Apprenticeship Job Creation Tax Credit under which small companies can obtain 2,000 CAD annually per each apprentice hired;
  6. the Atlantic Innovation Fund which targets companies in the research and development field;
  7. the Business Scale-up and Productivity Program in Ontario under which companies can expand their operations;
  8. a similar project called Western Business Scale-up and Productivity Program is also available for small companies in Western Canada;
  9. the Canada Small Business Financing Program which allows small companies to access up to 1 million CAD to expand their operations.

If you are interested in any of the grants for small companies mentioned above, our local agents can offer more information about them. It is also important to know that there are certain requirements to be met in order to qualify as a small business.

If are interested in setting up a business in Canada, do not hesitate to ask for support from our consultants.
 

How to apply for a government grant in Canada


Both local and foreign investors who own companies in Canada can apply for government grants by following specific steps, however, each program can have its own platform or requirements and that is why the business owner needs to pay attention to these details.

It is advisable to verify and check if the company meets the criteria of the program selected and also draft a business plan that supports the idea.

At the moment, the government grants available for Canadian companies target industries like agriculture, healthcare, arts and culture, environment and research and development. However, the conditions of the grants can change on a yearly basis.

With respect to the tax credits available for companies, it is useful to know that some of them refer to property ownership in provinces like Ontario, credits for digital media and e-commerce activities, credits for creating new jobs and the well-known Small Business Deduction available at a national level.

Canada is one of the most appealing countries in the world, according to the following data:
  • in the first half of 2018, FDI in Canada increased sharply reaching a growth of 144%;
  • Canada’s FDI in the first two quarters of last year accounted for 75% of the total FDI of last year;
  • the increase was due to the large number of foreign companies injecting money in the energy sector in 2017;
  • FDI here increased by 12,178 million CAD in the first quarter of 2019.

For complete information and assistance in accessing government grants for companies incorporated in Canada, please contact our local representatives. We can also help you register small companies which qualify for special funding programs offered by the government.