Canada, rated the most preferred choice for immigrant startup founders by the OECD among 24 countries, surpasses the US, France, the UK, Sweden, and Australia. Entrepreneurs are increasingly favoring the business purchasing route for Permanent Residency (PR) in Canada.
Learn more about this unique Canadian immigration pathway in our blog.
What Is Business Purchasing in Canada for PR?
There is also "Citizenship by Investment" in Canada.
— Olú (@Olufemiloye) June 30, 2020
You don't become a citizen immediately, but you can invest, get your Permanent Residency, and be eligible for Canadian Citizen in 3 years.
If this is the route you are interested in, @ogayemilawfirm can handle it for you too. https://t.co/X8EdVn2m5t
If you're a foreign investor dreaming of a fresh start in Canada, you can buy an existing business, and you're off to the races. In less than a year, if you've got a successful visa under your belt, you and your family can make the jump to permanent residency through provincial Canadian immigration programs. It's like a fast pass to set up roots in the lively Canadian scene.
Why Should You Buy a Business in Canada for PR?
BENEFITS OF GETTING A CANADIAN PERMANENT RESIDENT VISA.
— Travel Doctor (@ChuksJaphet) May 6, 2022
A Permanent Resident status gives individuals the right to reside in Canada permanently. To attain a Permanent Residency, an applicant needs to go through an immigration program.
A short thread
Buying a business in Canada to get permanent residency has lots of benefits. Some of them are as follows:
- Entrepreneurs can make the most of the groundwork already laid in establishing a brand, nurturing customer relationships, refining business processes, and acquiring assets.;
- This further allows for a quicker start to profitability compared to starting a business in Canada from scratch.
- Purchasing an existing business in Canada with a proven business model makes it easier to secure financing, as lenders have confidence in the established revenue streams and operational viability of the enterprise.;
Eligibility Criteria for Buying Business in Canada to Immigrate
Make sure to follow all the rules to increase your chances of moving to Canada by buying a business. It involves financial commitment, language proficiency, and the ability to settle in Canada independently.;
To qualify for Canadian immigration through business purchasing, there are three key requirements:;
1. Commitment from a Designated Entity
- Obtain a Letter of Support from a designated entity (angel investor group, venture capital fund, or business incubator) confirming a financial commitment.
- The financial commitment should be at least $75,000 from an angel investor group or at least $200,000 from a venture capital fund.
- The Letter of Support must be included with the Canadian immigration application, and its validity is six months from the date of issuance.
2. Language Proficiency
- Show proficiency in English, French, or both, with a minimum level of benchmark 5 in listening, speaking, reading, and writing.
- Provide proof of language proficiency through designated language tests such as CELPIP, IELTS, TEF Canada, or TCF Canada.
- Your language test results must not be more than two years old at the time of application.
3. Settlement Funds
- Prove the availability of settlement funds to support yourself and your family upon arrival in Canada.
- The funds must be free of debts or obligations, and the amount required depends on the family size.
- Provide official letters from banks or financial institutions, including account details and balances for the past six months.
5 Steps to Buy a Business in Canada?
Buying a business in Canada as a foreigner means taking key steps to ensure both the business and entrepreneur benefit the Canadian economy:
Step 1: Research and Business Selection
Carefully study and pick the right business to start your business journey. Make sure the chosen business meets certain requirements:
Step 2: Prepare a Comprehensive Business Plan
Creating a strong business plan to ensure your business idea is well thought out and viable. The plan should include:
Step 3: Submit the Labour Market Impact Assessment (LMIA) and Obtain Work Permit
Upon completing the business plan, obtain a positive Labour Market Impact Assessment (LMIA). A favorable LMIA result makes you eligible to apply for a temporary work permit, facilitating your entry into Canada.
Step 4: Operate Your Business in Canada
Upon receiving the work permit, relocate to Canada. Then, commence your business operations in adherence to Canadian immigration regulations and standards.
Step 5: Apply for Permanent Residence
Depending on the business immigration program, you may be eligible to apply for permanent residence upon arrival or after operating the business for a minimum duration, typically one year.
8 Tips for a Smoother Journey to Canada Immigration
Dos
- Conduct thorough due diligence on the financials, legal aspects, and operations of the chosen business. You should have a clear understanding of its current and past performance.
- Choose a business aligned with your specific industry expertise to minimize risks and improve your chances of success.
- Seek legal advice from professionals well-versed in Canadian business and immigration laws to ensure compliance at every stage of the acquisition.
- Connect with designated entities, such as angel investor groups or venture capital funds, to strengthen your application.
Don'ts
- Avoid rushing the decision to buy a business. Take the necessary time to evaluate all aspects thoroughly.
- Never ignore legal compliance. Ensure every aspect of the acquisition adheres to Canadian laws to prevent complications and rejections.
- Do not overlook cultural differences. Understand local business culture to develop smoother relationships with stakeholders.
- Do not assume eligibility for permanent residency without thorough verification. Consult immigration experts to confirm eligibility based on the specific business acquisition.
3 Common Pitfalls of PR in Canada
When applying for Canadian permanent residency through business purchase, the following common pitfalls can hinder a successful Canadian immigration application:
- One major mistake is not submitting all required documents accurately. You must meticulously review the list of necessary documents on the Immigration, Refugees, and Citizenship Canada (IRCC) website to avoid oversights.
- Inaccuracies on the application form can lead to delays or application refusal. You must ensure precise completion of forms and consistency with supporting documents.
- Double-checking the small details is an essential skill; you must seek guidance from qualified immigration professionals when uncertainties arise to go through the intricate process effectively.
To Round Up
Coming to Canada through the business purchase route is a good choice. But to succeed, you need to plan carefully and follow the rules. You have to check the business details, make a strong plan, get an LMIA, run the business, and then apply for permanent residence.;
You should also stay informed, plan for unexpected situations, and connect with local people. Do your research, get legal advice, and choose a business you know about. Take your time and follow the rules to make the process smoother.;
If you wish to consult with an expert, send us an email at info@matrixventurestudio.com and we will walk you through the entire Canadian immigration process step-by-step.;
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