What word comes to mind when you think of Canada? Is it Drake, Justin Bieber, Ice Hockey, Maple Syrup, Tim Horton’s Coffee or the incredibly beautiful landscapes? Whatever it may be, Canada is a great country with a lot to offer, including world-class cities like Vancouver and Toronto, extremely nice people who can’t stop apologizing and a welcoming and friendly business environment.

Canada is commonly recognised as having one of the most resilient economies in the world. It is a highly developed country with a GDP of $ 1.643 trillion USD (World Bank, 2020). Canada has a strong banking and financial service sector and it welcomes foregin investment. Thinking of doing business in Canada? If yes, then keep on reading.

Canada's Economy

Before you start doing business in Canada, it is best to familiarise yourself with Canada’s economic environment and currency.

As mentioned above, Canada’s economy is highly developed and one of the largest in the world. Canada has an open and efficient legal system along with a stable political environment that has created a welcoming atmosphere where international businesses can flourish. As of 2020, SMEs are responsible for 10 million jobs in Canada, which makes up 88.3% of Canada’s working individuals in the private labour force (ic.gc.ca, 2021).

The official currency of Canada is the Canadian Dollar ($). It is also known as the ‘Loonie’. A Loonie is equal to one dollar and a Toonie is equal to two dollars. A Canadian dollar is made up of 100 Canadian cents (₵). The Canadian dollar was originally tied to the value of the British pound and then the price of gold. Since 1931, the value of the CAD has been determined by the international marketplace.

The CAD is commonly measured in comparison to the USD. It is usually worth a little less than the USD. Recently, the Canadian dollar fell to its lowest level in almost two years. The value of CAD has been dropping against the USD. As of October 5th 2022, 1 CAD can now only purchase 0.74 USD.

Looking to open a Business Bank Account in Canada?

The Royal Bank of Canada (RBC) is one of the largest banks in Canada. When transferring money internationally, it is common to head to a major local bank. Most local business bank accounts can make cross-border payments. The RBC offers different types of business banking accounts e.g. a Digital Choice Business Account and the ‘Ultimate Business Account’. There isn’t a minimum balance requirement to open these bank accounts but there is a monthly fee of $5 or $100 (RBC, 2022).

In addition, to open a business bank account with RBC, you will need to visit a RBC branch and present multiple documents such as a government-issued ID and a business registration document. If you are not based in Canada, this can be quite tricky.

A TranSwap Global Business Account is a better banking alternative

TranSwap makes going global easy with our multi-currency global account. You get all the benefits of a digital business account but with added benefits that are built for a global scale. Thinking of doing business in Canada? Canada is now a new location where TranSwap users can open a bank account. TranSwap users can operate like a local without having to go through the hassle of traveling to Canada to open a local business bank account.

TranSwap’s multi-currency account lets you send, receive and hold CAD. You can safely store your funds in your virtual wallet and hedge against currency fluctuations. With the CAD hitting a 2-year low against USD, it is a good time to convert some CAD and hold for future usage. Business owners and managers no longer have to worry about currency fluctuation and exorbitant conversion fees but instead you can gain the upper hand over managing foreign exchange volatility. Other benefits include:

• A hassle-free alternative to securing local bank accounts in each country of operation.
• Everything can be handled online. There is no need to visit a physical branch and no paperwork or phone calls.
• Smoothly manage cash flow and bolster your competitive advantage in the local markets by paying and receiving money in the local currency.
• Instantly make international payments with no hidden cost and not having to maintain a minimum account balance.
• Use real-time exchange rates with no unwelcome surprises.
• Pay to over 100+ countries.

Ready to conduct business in Canada? TranSwap's multi-currency global account is free to register and it only takes a few minutes to set up. Sign up today!