Francisation Québec opened on June 1: a single access point and portal for anyone who wishes to learn French in the province, including people who are already working or running a business. The rollout is taking place in stages. It is nonetheless a welcome development, because French is the question raised in every conversation we have with newcomers planning to start a business here.
One of the versions of the ASP Lancement d'une entreprise that we teach is designed for new Quebec residents and immigrant entrepreneurs. It is the same program as the others: 330 hours over 12 weeks, entirely online, with two days of virtual classes and three days of coaching on each participant's own project per week. The difference lies in the starting point. Many participants in this version have previously run businesses, sometimes for years, in another country. They know how to sell. What they do not yet know is how things work here.
That gap is smaller than people fear, and larger than they expect in a few specific areas.
What should a newcomer do before spending money on a business?
Register and learn the regulations. The most costly mistakes we observe result from moving too quickly: signing a commercial lease, ordering equipment or paying for a logo and website before confirming what the business legally requires in order to open.
The first step is therefore unremarkable and free. The Quebec government's Démarrer une entreprise section covers legal structures, choosing and registering a business name, and the declarations required by each government department. We recommend reading it in full, then examining several questions that frequently affect newcomers in particular.
Is your trade regulated in Quebec?
Activities practised freely in another country may require a licence or permit here. Construction contractors require a licence from the Régie du bâtiment du Québec. Many professions are governed by a professional order, and practising or using the title without membership is not permitted. Food businesses require permits from MAPAQ. Municipalities may also have their own zoning and signage rules. This should be verified first, as it may alter the entire plan or its timeline.
Should the business be a sole proprietorship or incorporated?
Many newcomers assume that incorporation is necessary to appear credible. It is not. A sole proprietorship is simple and inexpensive to establish, and incorporation remains possible later. There are valid reasons to incorporate earlier, including liability and taxation, but this decision should be made with an accountant rather than on informal advice from acquaintances.
What tax obligations apply from the first sale?
GST and QST, eligible deductions, and the point at which sales exceed the $30,000 small supplier threshold. Revenu Québec administers both taxes for most businesses in the province, which often surprises people arriving from other parts of Canada. We recommend maintaining a separate bank account and keeping every receipt from the first day.
How does the absence of a Canadian credit history affect a new business?
Significantly, and this obstacle receives too little attention. A newcomer may have a solid financial record and a successful business in another country. Here, however, a bank sees an empty file.
This affects business loans, as well as smaller matters such as a business credit card, a lease or a supplier's willingness to extend 30-day payment terms. It should be anticipated. We recommend building credit early with a regular credit card used carefully, or a secured card if that is the only option available. Lenders are likely to request a personal guarantee. It is also worth exploring financing that weighs the project and the individual more than the credit score: local funds available through the MRC or the economic development office, and loan programs offered by organizations specializing in young or new entrepreneurs.
A solid business plan is particularly valuable in this situation. When a credit history cannot vouch for the entrepreneur, the plan must do so.
Why should a local network be built early?
Because business in Quebec, as elsewhere, depends on relationships, and newcomers arrive without any.
A network cannot be purchased, but it can be built deliberately, and sooner than may feel comfortable:
- Contact the business advisors at your MRC or, in Montreal, PME MTL. Their services are free and they know the key contacts.
- Attend your local chamber of commerce events, even if your French is still developing, and particularly in that case.
- Seek out people in the same industry who have been established here for a few years. Most remember being new and are willing to help over a coffee.
- Speak with future customers before opening. This serves as both market research and networking.
We have experienced the newcomer's position ourselves, in Thailand and then in Bali, building professional activity in places where both the rules and the people were unfamiliar. Progress accelerated considerably once a few local contacts knew who we were and what we offered. The beginning is slow, but it does not remain so.
Earlier this year, we published an article on free help for small startups in Quebec. All of it applies to newcomers as well, and most of these resources remain underused.
Why are French-language business skills important in Quebec?
Because they open doors and the law requires them. It is possible to run a business in Quebec with limited French, particularly in certain parts of Montreal. However, a business is far better positioned when its owner invests in developing their French.
Part of the reason is legal. French is the official language, and businesses must be able to serve customers and consumers in French. Bill 96, adopted last year, strengthened several of these requirements, and further provisions come into force over the next few years. Signage, the website, contracts, invoices and packaging should all be reviewed now, before anything is printed.
The larger part of the reason is the market. Most potential customers, suppliers, partners and funders will be more comfortable in French. A website in good French, a pitch that can be delivered in French and the ability to call a supplier in French each expand the circle of people willing to do business with the company.
Being bilingual, or trilingual as many newcomers are, is an asset. Serving Quebec customers in French while reaching others in English or a first language is a genuine advantage for a small business. High-quality bilingual copywriting matters more than is often assumed. Machine translation on a website is noticeable, and customers do notice it.
We recommend registering with Francisation Québec, even with a busy schedule. Many courses can be taken part-time or online, and business vocabulary is acquired more quickly than expected when used daily with real customers.
What is experience gained elsewhere worth in Quebec?
A great deal. People who have run a business in another country already know things that many first-time local entrepreneurs do not: how to work with suppliers, how to manage tight cash flow and how to sell in person. That knowledge remains valuable after arrival.
What changes is the context: different customers, habits, regulations and seasons, and in this region the seasons have a significant effect. The task is to adapt existing knowledge to this setting, while assessing honestly which elements do not transfer.
In our observation, the entrepreneurs who succeed are those who approach local practices with curiosity rather than frustration. Curiosity is also a business skill.