Foreign Attraction

Why Invest in Newfoundland and Labrador?

Strategic Location

Newfoundland and Labrador is strategically located on the east coast of Canada as the gateway between North America and Europe. Our trading patterns necessitates modern and extensive air, land and water transportation infrastructure. Wherever your markets, you can access them from Newfoundland and Labrador.

A Tradition of Trade

Newfoundland and Labrador businesses have been trading internationally for nearly five centuries. We have developed experience and innovations that help us send our world-class products around the globe. We have built modern infrastructure to transport our goods and services, and have the knowledge and contacts to access key markets, worldwide.

Productive Workforce

Newfoundland and Labrador has a progressive labour environment and an education and training infrastructure that has resulted in a skilled and talented work force. With a surplus labour supply, incoming employers can find the right people - with the right skills sets - across the broad range of occupation. Combined with one of the lowest labour costs in Canada, Newfoundland and Labrador becomes an attractive location for business expansion and development.

Research and Development Facilities

Newfoundland and Labrador is a leader in research and development and commercializing innovative technologies. Our research and development facilities employ internationally recognized professionals and have the most advanced technology available. Government and business partners build on the expertise of our research center and ensure the private sector has access to them. Ocean technology, environmental industries, aerospace and defense, biotechnology, information and communication technologies constitute some of the areas where co-operative research and development projects have led to new business opportunities.

Competitive Tax Environment

The province's Economic Diversification and Growth Enterprises Program (EDGE) provides long term corporate tax holidays to new and expanding business locating in Newfoundland and Labrador.

Progressive reductions in income tax rates position the province to have the lowest personal income tax rates in Atlantic Canada.

The manufacturing and Processing Tax Credit reduces the statutory tax rates for firms engaged in manufacturing and processing to 5%.

We also offer other business assistance programs and generous training partnerships which make Newfoundland and Labrador the right place for your new or expanding business.

Industrial Infrastructure

Our industrial park infrastructure offers quality space at a reasonable cost and quick access to supplies and services, communications infrastructure and established transportation networks. The development of our industrial parks and manufacturing facilities is part of an established plan. Each park and facility is within easy access to essential infrastructure. Assistance programs are available o offset capital costs associated with start-up and expansion. These programs work to ensure capital outlays are not a deterrent to your firm's ability to move to a strategic location.

Communications

Businesses choosing to locate in the province access a wide range of services which include regular and specialized telephone networks for any size business, cellular communications packages, video/tele/computer conferencing, and long distance call packages.

The province is serviced by four facilities-based telecommunications providers utilizing two fully redundant, fiber-optic networks that connect Newfoundland and Labrador to all global telecommunications providers.

Outstanding Quality of Life

We are proud of our international reputation as a friendly and hospitable people. Visitors are amazed at the ease with which they can interact with Newfoundlanders and Labradorians. Crime rates are among the lowest in Canada and North America.

Newfoundland and Labrador uniquely blends old world culture with new world convenience. Over 17,000 km (10,500 miles) of beautiful, rugged coastline provides a backdrop for modern amenities and technology.

Modern airport, seaports, and roads exist among prehistoric land formation and historical sites. Our province provides a high standard of health care and education and desirable standard of living.

With friendly, hospitable people; high standards of health care and education; low crime rates; old world culture of hunting, fishing and seasonal outdoor activities blending with new world convenience, our region provides an optimal and desirable standard of living.

For more information please contact:
Department of Business
6th Floor, Confederation Building, East Block
P.O Box 8700
St John's, NL Canada
A1B 4J6
Phone: (709) 729-3254
Fax #: (709) 729-3306
Toll Free: 1-877-727-6353 (NFLD)
www.nlbusiness.ca

Incentives for Investing in Newfoundland and Labrador

Business Attraction Fund

Purpose

The Business Attraction Fund ("Fund") is designed to attract medium and large scale businesses to the Province of Newfoundland and Labrador. It provides customized financial assistance to inward investors in support of start-up or business expansion.

Eligible Applicants

To be eligible for funding, the business must:

Be a duly registered company under the Newfoundland and Labrador Corporations Act and/or the Canadian Business Corporations Act,
Have or commit to have operations situated in the province.
Be a result of inward investment.
Be in good standing with the province.

The business plan must also demonstrate that the project:

Is necessary to attract identified investment opportunity.
Has the potential for long term sustainability, will create employment, and can bring economic benefit to the province.

Business Attraction Fund Incentives

The Fund consists of a $25 million allocation for loans or investments, as well as a $3 million allocation for non-repayable contributions available for strategic investments infrastructure support costs, human resource costs or other costs, as determined by the Department of Business, that would promote a business friendly environment and improve the ability to attract inward investment to the Province.

Economic Diversification and Growth Enterprises (EDGE)

Purpose

The Economic Diversification and Growth Enterprises (EDGE) Program provides incentives to encourage significant new business investment in the province to help diversify the economy and stimulate new private sector job creation, particularly in rural areas.

Eligible Applicants

A new business or an existing business interested in expanding in the province may apply for EDGE status if there is the potential to create and maintain ten (10) new permanent jobs in the province; it is prepared to make a minimum capital investment of $300,000 or generate incremental annual sales of $500,000; it would not establish or expand in the province in the absence of the EDGE incentives; the EDGE incentives will not give it direct competitive advantage over other existing businesses in the province; and the business activity will have a substantial net economic benefit to the province.

EDGE Incentives

Companies approved for EDGE status are eligible for the following incentives and benefits:

A 100% tax rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax for a period of 10 years if the business is established within the northeast Avalon area or for 15 years if it is established outside northeast Avalon area.
A 50% rebate on federal corporate income tax for the periods referenced above.
A further 5 year period of partial rebates on the provincial and federal taxes referenced above, declining by 20% in each year of this phase-out period.
Access to unserviced Crown Land for $1.00 where such land is required to implement the company's business plan.

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