EAST-WEST
INVESTBRIDGE
Toronto, Canada
Toronto: Canada's Business & Financial Centre
The most populated region of Canada’s ten provinces and three territories is the province of Ontario. Canada’s manufacturing industry, as well as growing industry sectors - including Information & Communications Technology, Life Sciences, Green Energy, and others - are based here. Toronto is Ontario's provincial capital, and Canada’s largest city. The Greater Toronto Area (GTA) is home to Canada’s financial & business centre, the third largest financial centre in North America, and among the Top 10 financial centres in the world (as ranked in 2012 by the Global Financial Centres Index).
Image source: www.InvestToronto.ca
Image Source: www.InvestToronto.ca
Image Source: www.InvestToronto.ca
Growing Economy
With an area population of nearly 6 million (and growing), Toronto is the fastest-growing financial centre in North America. It is one of the few cities in the world to boast both a world class Manufacturing & Financial Services sector, and the GTA is also home to a growing, varied economy that includes such sectors as Life Sciences, Biotechnology, Information & Communications Technology, Aerospace, Business Services, Defense & Security, Film & Television, Food & Beverage, and Energy (including Renewable & Green Energy).
Business-friendly & Cost-effective
Toronto has earned the reputation internationally as one of the most stable, well-regulated, ethical, and cost effective cities in the world to start, expand, and invest in a business. In a study comparing business costs and other competitiveness factors among more than 110 cities in 14 countries, Toronto ranks second most competitive among the world’s major business markets, scoring high on such factors as competitive costs, tax advantages, incentives, and ease of access to capital & real estate. Toronto’s business costs are lower than those of any American city with a population of at least two million, including the 27 largest U.S. cities. Toronto's business costs are second lowest among the world’s major business cities. For example, a company in Toronto with 100 employees will spend 67% less annually on health care costs compared to a company of similar size in the U.S. (Ontario Ministry of Economic Development and Trade).
Low Taxes + Generous Tax Credits
Canada currently has the lowest overall tax rate in the G7. The combined federal & provincial General Corporate Tax rate in Ontario is lower than that of New York, California, Illinois, and several other U.S. states. The Marginal Effective Tax Rate on new investments has dropped to 16.2% in 2012, significantly below the average reported by the Organization for Economic Cooperation and Development (OECD) (Source: Institute for Competitiveness and Prosperity). Canada’s tax credits for Research & Development are among the most generous of any country in the G7 – the combined Canada & Ontario tax incentives can cut R&D costs by nearly two-thirds (more than 63%) after-tax (Source: Invest in Ontario, 2010). Also, Canada’s government has announced that Canada will be the first country in the G20 to eliminate all tariffs on manufacturers by 2015 (Source: KPMG Competitive Alternatives Report 2012).
Low Risks, High Returns for Investors
In 2012, Aon Hewitt ranked Toronto the second ‘lowest risk city’ in the world for business. This index measures the risks to businesses in dealing with recruitment, employment, and investment, comparing more than 130 cities worldwide. “Cities with low risk typically have a government that is transparent, non-confrontational, and deal with employment issues fairly,” said Rick Payne, Chief Research Officer of Aon Consulting’s Global Research Centre. Toronto has earned this high ranking mainly due to Canada's equal opportunity laws, clear government-mandated health and retirement benefits, and low level of corruption, among other factors (Source: Aon Hewitt's study, the 2012 People Risk Index).
PricewaterhouseCoopers ranks Toronto the third best city in the world for economic opportunity in its 2012 Cities of Opportunity study, which compared 27 major international centres of finance, commerce and culture. Toronto scored particularly high in shareholder protection, operational risk climate, Intellectual Capital, Innovation, Education, Ease of Doing Business, Health & Safety, Entrepreneurial Environment, and Livability. In its recent 2012 ranking, PwC ranked Toronto first place for Quality of Living, and second place for Health, Safety, and Security.
International Investment
Toronto is renowned for being one of the world's most educated, multi-cultural cities - two more qualities that make this city so attractive to international businesses & investors. Toronto's workforce is among the most educated in the world; one third of Toronto's culturally diverse labour force of 3.2 million holds a bachelor’s degree or higher.
Toronto’s GDP per capita is greater than that of Hong Kong and Berlin. (Source: Toronto Board of Trade, 2010). The North American Free Trade Agreement, Toronto's ideal location, and the city’s integrated transportation infrastructure gives businesses access to 461 million consumers with a combined GDP of nearly $18 trillion USD (Source: CIA Factbook 2011). As such, Toronto is an ideal location for entry or expansion into the North American market.
All levels of government in Canada are committed to supporting and fostering business investment through strategic incentive programs – including very generous and flexible tax credits, loan guarantees, equity & funding programs, and other financial incentives – as well as sound regulations that promote economic growth.
