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Do you need a company in Canada to sell? Models for entering the market
The short answer is no. You don't need a company in Canada to sell there: today there are several business models that, thanks to technology, allow you to sell to international markets. But there are some considerations to keep in mind.
Your product defines the strategy
The type of product you want to bring in determines how necessary it is, or not, to register a company in Canada.
- In some cases, the Canadian buyer suggests that the supplier have a Canadian company and, above all, an account with a Canadian bank to make payments and taxes easier.
- If you sell non-perishable products, you can consider the most widely used marketplaces in Canada: Etsy, Walmart, Shopify or eBay, among others.
If you export perishable or agricultural products
The best option for those starting to export perishable or agricultural products is to work with an Importer of Record (IOR): the individual or legal entity responsible to customs for clearing the goods and ensuring that the merchandise complies with the country's regulations. For food, that includes the CFIA requirements.
Other sales models
There are other paths, each with its own implications:
- Strategic partnerships.
- Distributors in exchange for a profit margin.
- Direct B2B sales.
- Sales agents and representatives.
If you want to sell directly to consumers (B2C)
In this case you would need to register a company: for example, to open a physical or online store where you control all the sales and distribution of your product.
Conclusion: more than whether or not you register a company, what matters to sell in Canada is having a competitive product and business model, adapted to the country's regulations, logistics and culture. If you haven't decided who to work with yet, read how to find importers in Canada.
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