If you are one of the many entrepreneurs in Canada who recognize that your connections in China are interested in purchasing vehicles from you in Canada, don’t forget about these commonly overlooked steps before getting started.
It is a wise choice to incorporate your business. There are many benefits both for liability and tax purposes. Your starting point should be the step by step incorporation guide from the Government of Canada website:
2) Sales Tax Registration
To ensure that the vehicles that you purchase for export to China qualify for a sales tax refund, it is critical that your business has a registered HST number. Your first step for registering should be the GST/HST registration guide on the Government of Canada website:
It is important to complete this registration prior to purchasing your first car that you plan on exporting to China.
3) Provincial Vehicle Sales Registration
Pending the province you live, you also have to register with the provincial regulator of motor vehicle sales. The Ontario organization is OMVIC (Ontario Motor Vehicle Industry Council) and your starting point should be the dealer registration services on their website:
4) Understand the Challenges
There are a number of challenges that can blindside a new car exporter. Before you start focusing on buying the vehicles for your clients overseas, it is important to review these top challenges and make sure you are starting with your long term goals in mind. You should also consider partnering with Techlantic from the beginning to avoid these challenges all together. The quickest way to understand some of these key challenges is to review our previous post on “Challenges Exporting Cars to China”:
5) Prepare Common Templates and Documentation
The dealers, who supply the vehicles, are often restricted to whom they can sell. When you want to purchase more than one vehicle, it is common to use agents to source a vehicle for you. An agency agreement would be required and Techlantic is happy to share a recommended agency agreement upon request. This is one of many common documents and best practices that we are happy to share with anyone who is starting a new business exporting cars to China.
Techlantic staff can also help you with any other questions you may have and is just a phone call or email away https://www.techlantic.com/contact-us/. Please feel free to visit our office in Mississauga for a chat over a cup of coffee.