The most cost-effective place in the world to do business

Compared to similar-sized urban areas, Quebec City is the most cost-effective place in the world to do business. In addition, the province of Quebec has one of the lowest corporate tax rates in North America.

"Quebec City is at the heart of a highly dynamic region offering entrepreneurs a range of attractive business opportunities. Thanks to a world-class labor force and one of the highest standards of living in North America, we are providing cost-effective expertise to growing numbers of international clients, right here in Quebec City."
André Pouliot, President and CEO, DMR Consulting (a Fujitsu company)

Typical business start-up and operating costs (in thousands of US$)

  Quebec City Canada U.S. Germany
Land and building 2,756 2,899 2,966 6,784
Labor 5,930 6,048 6,836 8,300
Utilities 341 349 400 478
Total 14,063 14,347 15,185 16,303

Source: KPMG Competitive Alternatives 2006

2005 comparison of effective tax rates (%) manufacturing companies

  Basic federal tax Provincial/state tax Total
Quebec 22.12 8.90 31.02
Ontario 22.12 12.00 34.12
New-York 27.96 7.50 35.46
Californie 30.95 8.84 39.79
North Carolina 31.61 6.90 38.51

Source: Investment Quebec and Raymond Chabot Grant Thornton, March 2005

Major tax incentives

Fully refundable basic tax credits:

  • 17.5% of R&D; salaries paid in Quebec
  • 37.5% on the first C$2,000,000 in R&D; salaries paid each year by a Canadian-controlled small or medium-sized business
  • 35% of eligible R&D; expenditures at accredited research centers
  • 5-year provincial tax holiday for international researchers and innovation managers

Low-cost electricity

(in U.S. cents per kwh)

Source: 2004 KPMG Competitive Alternatives

Infrastructure and facilities

  • 33,700 companies
  • 12.7 sq. mile industrial zone divided into 25 parks
  • Quebec Metro High Tech Park: 5.4 sq. miles, 83 companies/organizations, 3,000 employees
  • Quebec City Convention Center: accommodates up to 10,000 visitors
  • Quebec City Trade Fair Center: 125,000 sq. ft. exhibition hall
  • Hotel accommodation capacity: 12,600 rooms

Construction boom!

  • The Quebec City region is riding an unprecedented wave of development, including university building projects, plant expansions/modernizations and new R&D; facilities
  • Annual growth rate for the construction industry: 10%
  • Regional construction projects in 2005: C$3.6 billion