Canada is known for its stunning scenery, welcoming culture, strong economy, and business ownership opportunities. Buy a business in Canada for PR can be a strategic path to obtaining permanent residence (PR) for those who wish to reside in the Great White North permanently. This comprehensive guide examines buying a business in Canada to obtain Canadian permanent residency.
Who is eligible?
Eligible for this program is a foreign investor whose management experience is valid and transferable, who has enough capital to buy or start a business in Canada, who has sufficient command of English or French, or who can be an active manager in business and is busy working.
What is the process of immigrating to Canada by purchasing a business?
First, the foreign investor identifies the right business for purchase. Then, he files a request to receive an LMIA or (Labor Market Impact Assessment) document, which a professional business plan must accompany. Then, when the LMIA document is declared positive and issued to the applicant, the investor applies for a renewable temporary work permit with an initial validity of 12 to 24 months.
How long does this process take?
It usually takes between 2 and 3 months to determine the positive result of issuing the LMIA-exempt document, and it takes almost three months to issue the work permit.
Advice for buying a business in Canada for PR
If you want to immigrate to Canada by Buying A Business In Canada For PR or Buying a Franchise in Canada as a Foreigner, keep the following points in mind so that the company you buy is profitable. You can also get an opinion from the immigration office about obtaining a work visa and permanent residence.
Try to make sure that the business or company you are buying is not a Canadian startup and that it has shown promising activity in the last year. At the same time, you must prove that the income of this purchased business is sufficient for your living expenses after receiving permanent residence. Also, before applying for permanent residence, you must have managed the purchased business for 12 months before the application. Before starting a business in Canada, be sure to ask the seller to provide several documents, including the following:
- A set of activities and agreements of the company’s previous shareholders
- Income and tax returns for previous years
- Lease agreements and corporate loans
- All documents related to the company’s performance
How To Buy A Business In Canada?
Section 1: Understanding the Business Landscape in Canada
Before buying a business in Canada to obtain permanent residence, it is necessary to understand the Canadian business landscape. Canada has a diversified economy with thriving sectors such as technology, healthcare, manufacturing and services. Conducting thorough market research is critical to identifying viable business opportunities that align with your expertise and interests.
Section 2: Types of occupations eligible for permanent residence
Not all jobs are created equal when obtaining permanent residency in Canada. Certain types of businesses are more useful for permanent residence applications. Immigration Canada generally favours businesses that contribute to the Canadian economy by creating jobs, fostering innovation, or addressing specific market needs. For example, we can mention technology startups, manufacturing companies, and businesses in deprived areas.
Section 3: Eligibility Criteria for Permanent Residence through Business Purchase
Applicants must meet the eligibility criteria specified by the Government of Canada to be eligible for permanent residence through business purchase. These criteria usually include:
- Amount of Investment: Applicants are required to make a significant investment in the business, which typically ranges from CAD 200,000 to CAD 1,000,000, depending on the province and the nature of the business.
- Job creation: The business must create employment opportunities for Canadian citizens or residents.
- Business Experience: Applicants are often required to demonstrate relevant business management or entrepreneurial experience.
- Regulatory Compliance: The business must comply with all federal, provincial and municipal regulations.
Section 4: Canadian Entrepreneur Visa Programs (PNP)
Provincial nomination programs, or the Canadian Entrepreneur Visa, are essential in facilitating business ownership for permanent residency purposes. Many Canadian provinces have exceptional entrepreneur or investor visa programs designed to attract and retain talented individuals who wish to invest in Canada in local businesses. These programs offer fast-track paths to permanent residency for qualified candidates.
Section 5: Obtaining professional guidance
Navigating the process of buying a business in Canada and obtaining Canadian permanent residency can be complicated. Seeking guidance from an official Canadian immigration consultant, business immigration lawyer, or registered Canadian business broker is highly recommended. These professionals can provide:
- Valuable assistance in evaluating business opportunities.
- Preparing public relations plans.
- Ensuring compliance with legal requirements.
Section 6: Due Diligence and Business Valuation
Before finalizing a business purchase in Canada, conducting due diligence and obtaining a professional business appraisal are essential. Due diligence includes carefully reviewing financial records, operational aspects, and business legal compliance to reduce risks and ensure a sound investment.
A comprehensive business valuation helps determine the business’s fair market value and facilitates informed decision-making.
Section 7: Financing Options
Financing the purchase of a business in Canada is possible through various methods, including personal savings, bank loans, venture capital, or seller financing. Examining multiple financing options and structuring the deal properly are critical aspects of the buying process. Working closely with financial advisors and lenders can help ensure favourable conditions and optimize investments.
Section 8: Development of a business plan
A good immigration business plan is necessary for financing and demonstrating the business’s viability and growth potential to immigration authorities. The plan should outline the company’s goals, market analysis, competitive strategy, financial projections, and job creation plans. Working with consultants or coaches with business experience can increase the quality and validity of the plan.
Section 9: Immigration Application Process
After completing the business, applicants can continue with the immigration application process. This usually involves submitting a comprehensive application for permanent residence under Canada’s C11 visa program, Canada’s Entrepreneur Visa or Canada’s designated investment visa, along with supporting documents such as company registration documents, financial statements and proof of investment. Engaging with a reputable immigration consultant can simplify the application process and increase the chances of success.
Consequently, obtaining permanent residence through buying a business in Canada requires careful planning, diligent execution and compliance with legal requirements. With the right strategy and support system, aspiring entrepreneurs can turn their entrepreneurial ambitions into reality and begin a new chapter of success in the land of opportunity.
When the immigration application is sent to the immigration department through the purchase of a business, one of the factors considered is your competence in turning over and managing the purchased company. For example, it is essential that if you are buying a restaurant, you must have experience in this field. Otherwise, you will not be considered qualified.
Before you apply for a Canadian ICT visa, you should have detailed information about the requirements and documents required to obtain a visa. To learn more about the requirements for entering Canada as a skilled worker, you can contact Arnika Visa Immigration Firm for quality Canadian immigration services.