Buying a Business in Canada
33% of business owners in Canada are immigrants! Buying or starting a business in Canada has been the choice of these immigrants. Both of these methods have their unique advantages, but it can be said that the risk of buying a business in Canada is generally lower than starting one.
So, if you are considering immigrate to Canada, buying a business could be one of the best options for you. We will explain everything about buying a business in Canada below. But before reading further, if you need advice, please fill out the immigration evaluation form, and we will guide you more precisely.
To receive professional immigration consultation, please fill out the form below:
What Does Buying a Business in Canada Mean?
Buying a business in Canada refers to the process of purchasing an existing business, which can include acquiring a company through the purchase of its assets or shares.
This process involves thorough due diligence, negotiating terms of the purchase, obtaining financial resources, and complying with regulatory and tax requirements.
What makes buying a business in Canada a popular immigration method is the possibility of obtaining permanent residency within 2 years and earning Canadian dollars upon arrival in Canada.
Several Convincing Reasons to Buy a Business in Canada
By buying a business in Canada, you can:
- Get a 2-1 year visa;
- Apply for permanent residency after one year;
- Immigrate with your spouse and children;
- Allow your spouse and children to work and study in Canada.
Conditions for Buying an Existing Business in Canada
- Education: At least a high school diploma
- Work Experience: At least 3 years in a managerial position
- Required Capital: From $150,000 (depending on the type of business)
- Language Proficiency: Not mandatory, but basic language skills are necessary
- Minimum Shareholding in the Business: At least 51% of the company’s shares
Further Explanation of Conditions
- Work Experience: While no specific duration for work experience is mentioned, based on our experience with business acquisition cases, it is advisable to have at least 3 years of managerial experience. You should be able to prove this experience with appropriate documentation. Owning at least 10% of a business in Iran can also be used as proof of experience.
- Language Proficiency: Although having a language certificate is not required for buying a business in Canada, you need to demonstrate the ability to speak English or French. Having a language certificate increases your chances of success.
- Required Capital: Each business has its own price, influenced by many factors. However, the minimum capital required to buy a business in Canada is between $150,000 and $250,000 CAD.
- Shareholding in the Business: When buying a business that is ready for sale, you must either buy the entire business or at least 51% of its shares. The more shares you purchase, the higher your chances of securing a visa.
Steps for Immigration to Canada Through Buying a Business
The process of immigrating to Canada through purchasing a business involves several key steps to ensure a smooth transition and successful application.
Step 1: Find the Right Business
The right business means one that aligns with your work experience, expertise, and skills. But where should you look for such businesses?
- See GalaPath’s ready-to-sell businesses
- Search Canadian business-for-sale websites
- Seek assistance from a business lawyer
Be cautious with businesses that are labeled as “Regulated.” For these businesses, you must complete specific training or have special permits to purchase.
Step 2: Hire a Business Lawyer
Seeking help from a business lawyer or broker is a win-win situation. A business broker or lawyer can assist you with:
- Choosing the best business to purchase
- Negotiating and drafting the contract
- Handling administrative tasks and obtaining necessary permits
With the help of a business lawyer, the process of buying a business in Canada becomes smoother, faster, and more accurate. Since you are in Iran, having someone knowledgeable to handle the details becomes even more critical. Fortunately, Parsi Canada has brokers in every city in Canada, and you can check the details of the business you plan to buy through them.
Step 3: Buying the Business from the Owner
One of the most challenging steps is convincing the landlord (property owner) to sell the business to a non-Canadian. At this stage, the business lawyer will step in with their experience and skills to negotiate on your behalf and secure the deal.
Having strong financial backing in your bank account can also help in gaining the landlord’s approval.
Step 4: Prepare a Business Plan
By writing a strong business plan, you can convince the Canadian Immigration Department and the Employment and Social Development Canada (ESDC) to issue the necessary permits and visa.
In this business plan, you must demonstrate that the business has a positive impact on Canada’s economy and that not only will existing jobs be maintained, but new jobs will also be created.
You need to show how you will improve and expand the business and prove that it will grow.
In short, in your business plan, you should state: “I have taken over this business at this level, and with these plans, I aim to elevate it to the next level.”
Step 5: Obtain an LMIA (Labour Market Impact Assessment)
Businesses that wish to hire foreign workers must prove that their hiring will not negatively impact employment or the economy in Canada and must obtain approval from the ESDC in the form of an LMIA letter.
At this stage, you submit the complete documentation of the purchased business and the business plan to ESDC and obtain the permit, after which you can apply for a Work Permit.
Step 6: Obtain a Work Permit
After receiving the LMIA, you must apply for a Canadian Work Permit. This is not just any work permit; it is an Owner Operator Work Permit issued under the Temporary Foreign Worker Program (TFWP).
This work permit is issued for 1-2 years, with the possibility of extension and the option to apply for permanent residency.
Step 7: Immigrate to Canada
Everything is ready! Pack your bags, book a flight, and head to Canada for a bright future. Now, within the 1-2 year period granted by the Canadian government, it is time to prove that you deserve permanent residency. Focus on growing the business you purchased.
At this stage, Parsi Canada is with you. In the video below, you can see some of the services our team provides to clients in Canada for business acquisition.
Costs for Buying a Business in Canada
Clients of GalaPath can pay for this immigration method through property and vehicle trade-in.
Determining the exact costs is difficult and will depend on your situation and the business in question. In general, the minimum capital needed for buying a business in Canada in 2025 is between $150,000 and $250,000, and this amount should not be less than this.
Costs of Buying a Business in Canada
All amounts are in Canadian dollars:
- Capital to buy a business: At least $200,000
- Work permit: $155 per person
- LMIA application: $1,000
- Temporary residence permit: $239.75 per person
- Tourist visa: $100 per person
- Fingerprinting: $85 per person
Some Tips on Business Pricing
- In some cases, the price for each part of the business is listed separately in the agreement. If the price of the business is reasonable, you can use this price to calculate your tax deductions.
- If the total business price is not specified in the contract, you must clarify how much you want to pay for each part of the business (including goodwill, list of assets, etc.).
- This amount must match the figure set by the seller.
- Also, the amount you allocate for each part of the business should be based on its fair market value (FMV). What remains after this pricing breakdown should be attributed to goodwill.
How to Choose the Right Business for You?
Here are 3 ways to find the right business for you:
Business Categories Available for Sale in Vancouver:
The businesses being sold by GalaPath company:
1- Coffee Shop – Amberdo
- Price: $400K – $700K CAD
- Offers a variety of classic drinks and desserts.
2- Massage & Spa – DKB Wellness Center
- Price: $250K – $700K CAD
- Provides spa services, massage, skin care, and more.
3- Website & Software Development – Onworld
- Price: $90K – $700K CAD
- Specializes in advertising, website development, and mobile apps.
4- Italian Restaurant – Lombardo
- Price: $400K – $700K CAD
- Offers a variety of pizzas, salads, and Italian appetizers.
Business Purchase Websites in Canada
- Business Exchange
- LoopNet
- Business Sell Canada
- Business For Sale
- Ibba Canada
- Flippa
Consult a commercial lawyer
Consulting with a business lawyer or broker can significantly improve your chances of success. These professionals know the market well and can help you find the best businesses to buy.
To receive professional immigration consultation, please fill out the form below:
1. What is the minimum capital required to buy a business in Canada?
The minimum capital required to buy a business in Canada is generally between $150,000 and $250,000 CAD, depending on the type of business.
2. Can I apply for permanent residency immediately after buying a business in Canada?
No, permanent residency is not granted immediately. After buying a business, you must demonstrate your success and meet the necessary conditions within 1-2 years to apply for permanent residency.
3. Is a language certificate necessary to buy a business in Canada?
A language certificate is not required to buy a business, but you need to demonstrate basic proficiency in English or French. Having a language certificate can enhance your chances of success.
4. Can I immigrate to Canada alone or do I need to bring family members?
You can immigrate with your spouse and children. Your spouse can work, and your children can study in Canada.
5. Do I need to be physically present in Canada during the business purchase process?
Yes, you will need to be in Canada at some stage of the process. However, you can complete much of the work through a business lawyer or broker who can assist remotely.
6. How long does the immigration process take?
The entire process typically takes around 1-2 years, with the main waiting times related to obtaining permits such as the Work Permit and LMIA.
