Hi,
I had a call with Montreal International yesterday, an organization that
helps foreign companies start a business in Quebec. 
Overall my contact there gave some pretty good news on the way things can be
done, here it is in brief  (also on the wiki,
http://community.hackit.cx/wiki/Place_of_the_company)  :
*       Their organization can help on two kind of topics : mobility (work
visa, permanent residence, etc), and setup (creation of company, subsidies,
tax credits, etc). Their service is free of charge.
*       Incorporation of a company is an easy task in Quebec. It takes a
couple of days, and costs around 250 CAD
o       To provide a work visa, the immigration administration uses a lot of
criteria but Montreal International can help with that (they'll need a
business plan) and in the video games industry, it should be fairly easy to
get one, immigration likes this industry...
o       The easiest way to do this, the one that gives the best chance to
have a work visa, is to create the Canadian company as a subsidiary company
of the French one; then it is possible to use what is called inter-company
transfers, which makes it very easy to get a work visa. We'll need to look
at the tax impact of doing that and whether it's necessary to be employees
of the French company, but it's a lead we can work on.
o       It takes around 3-4 weeks to get the visa, once we start working on
it.
o       There is no need for the few hundred thousands CAD in order to start
our company and have a work visa, that I had read on a website. This is more
for individuals who want to invest in Quebec (real estate, ...), not for
people who setup a company. This is excellent news as you can imagine :-)
*       Tax credits:
o       The tax credit (credit d'impot titre multimedia) can definitely
apply our Canadian company, but it is based on salaries of Canadian
employees only (or immigrants who have a permanent residence visa) who
dedicate more than 75% of their time on development of the game. 
o       Basically, 30% of the salary of these employees is either deduced
from taxes at the end of the year, or given to the company if we don't pay
taxes, so it works like a subsidy. This explains why many game companies
have a Canadian studio as a cost center, generating revenues in other
countries. This could perfectly apply to us, with the revenues in france,
which could solve some issues related to ISF. 
o       They add a 7,5% if the game is localized in French language, so an
overall credit of 37,5% of salaries. 
o       For online games, the tax credit goes on as long as the game is
updated, even once the first version is released. The administration decides
to give or not the credit on a yearly basis.
o       Overall, it's good news except that it only applies to Canadian
employees but that was expected. We might therefore want to give recurring
contractors in Canada an employee status, provided that the recurring
contractors from other countries are treated on an equal basis.
*       Training subsidy :
o       It seems that the training expenses, if used in Canada (candian
universities, etc), can be reimbursed to the company. 
*       Next steps :
o       They'll be sending me documents that give more details, I'll share
them on the ml
o       Meet them in October in Montreal, and define an action plan with
their help
o       There is an interesting meeting in February '11 in Montreal for fund
raising (it's the biggest one in the year), it might interest us to go there
to start meeting people.

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