The foreign business owners in Canada must pass the ‘genuineness’ test, to receive 200 additional CRS points for arranged employment in Canada under the Express Entry program and become permanent residents.
We will share with you our top 3 tips for identifying and buying a good business for your immigration purposes.
If you want to buy a business in Canada for your immigration purposes, the rule of thumb is to buy an established company with several years of operational history behind it and loyal employees.
Canadian immigration authorities, in general, do not like ‘job offers’ made by start-up companies under the Express Entry program. If the company you plan to buy has been in business for less than 12 months, be prepared to provide sufficient documents to show that your newly acquired business is actively engaged in business and has sufficient revenue to support your permanent residence application. Alternatively, operate your business for 12 months before applying for permanent residence status in Canada.
When buying a business in Canada, always request that the seller of the business provides you with some fundamental documents related to the company, including the following:
When reviewing the corporate tax filings, pay close attention to Schedule 100 and Schedule 125 and check the reported gross sales numbers for the company in the past year. Also, make sure to review the most recent GST/HST filings to have an idea about the current sales volumes.
Since your business in Canada must have sufficient revenue stream to support your permanent residence application, always aim to buy a company that has $250,000+ of gross sales per year. Make sure to check the net profit number to ensure whether the company you are buying is profitable as well. However, the Canadian immigration authorities are not strictly concerned with the company’s profitability, but rather review if the gross sales are sufficient to support your wages and operational costs.
One of the factors that Canadian immigration authorities will check when assessing your immigration application is whether or not you can manage your newly acquired Canadian business.
The officers will also assess if your business purchase in Canada makes sense given your background and previous business experience. That’s why we recommend avoiding businesses that are completely new to you as this might raise questions about your fitness to operate that business. For example, do not buy a restaurant in Canada if you have no experience in the food or hospitality industry in your home country.
If you need assistance with buying a business for immigration purposes, we are here to help you.
At Sobirovs Law Firm, we focus only on business immigration. That is, we help entrepreneurs, business owners, and investors with sufficient funds and business experience to relocate to Canada using the most suitable immigration programs. We take time to learn about you, your goals and capabilities, and choose the best pathway(s) to Canadian permanent residence and, ultimately, Canadian citizenship for you and your family.
Contact us today and see how we can help you and your business!
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We have worked with & represented clients from all walks of life. Always just one call – or click – away, weʼre happy to help you begin your & your familyʼs journey to Canada.