Acquiring a business or franchise in Canada as a foreign investor involves navigating both investment regulations and immigration processes. Below is a structured guide to assist you:
1. Investment Regulations:
Foreign investments in Canada are primarily governed by the Investment Canada Act (ICA), which aims to encourage foreign investment that benefits Canada.
Key Considerations:
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Notification and Review: Non-Canadians acquiring control of an existing Canadian business or establishing a new business must submit either a Notification or an Application for Review, unless a specific exemption applies.
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Cultural Businesses: Investments in cultural businesses may be subject to additional review under the ICA.
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Thresholds for Review: The ICA sets specific thresholds for review based on the value of the investment and the investor’s country of origin. For instance, the threshold for the direct acquisition of control of a cultural business or for transactions where neither the buyer nor the seller is a World Trade Organization (WTO) investor is CAD 5 million.
2. Immigration Pathways for Business Investors:
To reside in Canada while managing your investment, consider the following immigration options:
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Start-up Visa Program: Designed for immigrant entrepreneurs with the skills and potential to build businesses in Canada that are innovative, can create jobs for Canadians, and can compete on a global scale.
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Owner-Operator Program: Allows foreign nationals to acquire a Canadian business and apply for a work permit as a key employee of that business. This program requires the investor to have a controlling interest in the business and to be actively involved in its operations.
3. Visa Application Process:
For the Start-up Visa Program:
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Secure a Commitment: Obtain a letter of support from a designated organization (venture capital fund, angel investor group, or business incubator).
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Language Proficiency: Demonstrate proficiency in English or French through standardized tests.
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Educational Requirements: Provide proof of education equivalent to a Canadian secondary or post-secondary diploma.
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Financial Requirements: Show sufficient funds to support yourself and your family upon arrival in Canada.
For the Owner-Operator Program:
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Business Acquisition: Purchase a Canadian business and establish a controlling interest.
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Labour Market Impact Assessment (LMIA): Apply for an LMIA to demonstrate that hiring you will not negatively impact the Canadian labor market.
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Work Permit Application: Submit a work permit application, including the approved LMIA and other required documents.
4. Additional Considerations:
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Legal and Financial Due Diligence: Conduct thorough due diligence on the business or franchise to assess its financial health, legal standing, and market position.
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Professional Assistance: Engage with legal and financial advisors experienced in Canadian business acquisitions and immigration processes to navigate the complexities effectively.
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Regulatory Compliance: Ensure compliance with all federal and provincial regulations, including those related to employment, taxation, and industry-specific standards.
By understanding and adhering to these guidelines, you can facilitate a successful business acquisition and immigration process in Canada.