1 out of 3 businesses in Canada have paid employees – and most of them are in the hospitality, technology, retail, and logistics space.
Over 23% of the Canadian population consists of immigrants, with most new immigrants continuing to settle in Toronto, Montreal, and Vancouver.
If you’re looking to move with your family to Canada, business immigration may be what you need to look for. And you don’t even have to set it up from the ground up. If you buy an existing Canadian business, you don’t have to wait before filing your permanent residency (PR).
In this blog, we will explore how you can purchase a business in Canada and immigrate with your loved ones.
How to Buy a Business in Canada
Foreign investors and entrepreneurs can move to Canada by setting up or purchasing an established business. You will need a minimum of $50,000 to $250,000 to buy a profitable company to ease your road to PR.
However, costs can increase based on your goals and objectives. Moreover, profitable businesses don’t sell for cheap. You may have to spend $500,000 to purchase a company that makes $100,000 in net profits annually.
It may be possible to find a business at affordable costs due to the impact of COVID-19. Some business owners may be willing to sell their ventures quickly to regain their money.
Alternatively, you can purchase a franchise of an established brand in Canada. You are free to buy an existing franchise or a new location.
However, not all brands like to work with foreign investors or entrepreneurs. You may need to partner with a broker to facilitate the process.
Note that business immigration is different from coming with a business visa to Canada. It does not allow you to participate in the labour market or run your business in the country.
What Type of Business Should You Purchase?
You must apply for a work permit once you buy a business in Canada to get PR. Your options can include the Executive Express Entry or PNP Canada programs.
However, you cannot act as the owner-operator of your business. You need to take up a role in your company, like a manager.
Interestingly, you can seek PR through entrepreneur work permits to surpass the above requirement. All you have to do is to ensure your company brings economic benefits to the country.
You have three ways to achieve the target:
- Purchase a business in a key economic sector
- Purchase a business generating significant benefits
- Create a significant impact on the economy
Key Economic Industries and Sectors
The Canadian government promotes key economic sectors contributing to the country’s development. You can buy a business in such industries and work as an owner-operator to apply for PR.
Below are a few key sectors you might consider:
- Agriculture and food processing
- Natural resources
- FinTech
- Cybersecurity
- Aviation
Businesses Generating Significant Benefits
You can purchase a business that generates significant benefits for Canada to get PR quickly. The government has defined several activities that come under this category, such as:
- Creating employability
- Investing in research and development
- Developing new products and services
- Serving a needy local market
- Facilitating new technologies
Significant Economic Impact
A business that creates significant economic impact can quickly help you become a permanent resident. You have to fulfill the following requirements:
- Invest a minimum of $250,000 in a Canadian business
- Generate employment for at least 2 Canadians
- Run your business viably to cover the wages of all employees
We advise entrepreneurs to stay away from a few businesses if they want to be in the good books of the IRCC. The list includes:
- Insurance brokerage
- Cheque cashing
- Bed and breakfast
- Business Brokerage
- Hobby farm
Additionally, the business you purchase must employ a Canadian. It should also be an operating company.
Below are a few tips to ensure you buy the right business:
- Purchase a business operation for at least 12 months
- It should have good gross sales for 2 – 3 prior tax years
- The industry should match your expertise and experience
Start Researching
Now comes the turn to find a business you can purchase. You can work with a business broker to find suitable choices. Their expertise can be helpful and save you hours of researching and searching around.
Additionally, you can search online platforms that list businesses on sale. Some options are:
- Business Sell Canada
- BuyAndSellBusinesses
- Business for Sale
Stay away from unreliable websites and public forums. They may lead you to fake deals or scams.
Perform Due Diligence and Purchase
Narrow down your search and create a list of companies you want to purchase. You can rely on the tips below to create a shortlist of businesses to buy:
- Evaluate the corporate tax returns for the previous three years
- Assess current GST/HST filings
- Determine if the operations are profitable
- Look for bankruptcy filings, existing debts, and lawsuits
- Study additional risks
You can hire due diligence experts to facilitate your research. They cost money but can help you reduce the barriers to purchasing a business in a foreign country.
Moreover, you may want to talk with the seller and visit the company. It will give you a better idea of sales, the market, and additional factors to consider.
You can now purchase the business you feel is best for your circumstances. However, you must hire an accountant and immigration lawyer to facilitate the process.
Move to Canada
Canada is now ready to welcome you and your family. Your business immigration to Canada is almost complete, and all that remains is to apply for PR.
Best of all, you don’t need to wait a year to run your business. You can file for PR for you and your family right away.
Final Thoughts
Buying a business is one of the quickest ways to move to Canada with your family. You also don’t need significant investment and can find affordable companies to purchase.
The downside? The process can seem complicated with strict requirements and formalities. That’s why it pays to work with a professional agency like Titan Law Corporation to ease the hassles. We can provide end-to-end consultation and guidance to help you move to Canada, a country known for its beauty, grandeur, lakes, and healthy lifestyle.
