BUY A BUSINESS IN CANADA
AS A FOREIGNER
Do you want to buy a business in Canada for migration or citizenship? If YES, here is a detailed guide to buying a business in Canada as a foreigner. Canada is one country that has the friendliest migration policies and there are loads of opportunities waiting for entrepreneurs who wish to immigrate to Canada and establish their business there.
7 Steps to Immigrate from Buying a Business in Canada
1. Identify a business to purchase
The very first step a foreign investor who wants to start a business in Canada in a bid to immigrate into the country can take is to look out for a suitable business to purchase. In a bid to do this, you have check where your skills and experiences lie most so you can set your sights in those areas. Thereafter, you have to look out for a Canadian business that meets your skills and that is up for sale.
To do this effectively, you may have to contact a business broker who would help you look out for an available business that meets your taste and budget. Of course, there is no rule that says you cannot find this business on your own, but since you are still a foreigner, it is more advisable to have someone who is a local to help you in the search.
2. Hire a business broker
When purchasing a business in a foreign country, your best bet would be to hire someone who is familiar with the business terrain in the country to help you out. For this reason, you need to hire a business broker. This person must be a local who is able to speak your language, so he or she would know the laws on ground, and would be able to guide you through the legal minefield to avoid making mistakes.
The reason you would need him or her to speak your language is so that you can understand yourselves better, but you have to bear in mind that the official languages in Canada are English and French, so you need to learn either of the two languages.
You should also do some research to understand and select advisors, trade partners, contacts in the industry, banking circles, etc. as these people would always come in handy at one point or the other when buying a business in Canada.
3. Create a business plan
If you have identified the business you would like to purchase, the next step to follow is to write a suitable business plan for your intending business. It is noted by law that the purchase of a business by a foreign national must be supported by a suitable business plan that will, along with other conditions, result in the creation or retention of Canadian jobs.
Your business plan must reflect what you tend to do differently to turn the business around. It must reflect your plans and financial projects, and most importantly, it must reflect how the business would impact the country and its citizens positively.
4. Negotiation a Sale
With a suitable business plan at hand you are ready to start negotiating the sale of the business. It is not likely that you would do this on your own, so this is where the services of your business broker comes in. He or she would deal with the intricacies of negotiating the sale and ensure that all the necessary inspections have been made and the papers signed. Note that you may not be in the country when all these are going on, so that is why you need to get yourself a trusted broker.
5. Apply for Labour Market Impact Assessment Document
The next step in buying a business as a foreigner in Canada is to get your Labour Market Impact Assessment document. A Labour Market Impact Assessment (LMIA) is a document that an employer may need to get before hiring a foreign worker.
Positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker is available to do the job. A positive LMIA is sometimes called a confirmation letter. For a foreigner to buy a business in Canada, he or she must present this document.
What is a LMIA (Labour Market Impact Assessment)?
An LMIA is a document from Employment and Social Development Canada that also gives the employer permission to hire a temporary worker. In order to complete the business buying process, the Labour Market Impact Assessment (LMIA) is submitted along with a suitable business plan, so you can work there and also hire workers.
6. Apply for temporary work permit
Once a positive LMIA document is issued, the foreign investor is now allowed to apply for a 12-24 months, renewable temporary work permit. You should note that once a suitable business is found, it will take 2-3 months to complete the LMIA application process. It will take less than 3-months in most jurisdictions, to receive a work permit.
7. Apply for permanent residency
Once all these processes have been completed and the entrepreneur legally owns the business, he or she can start the process of applying for permanent residency. There is no minimum wait time. Qualified candidates may apply for permanent residency with their families, soon after they arrive in Canada.