Buying a business as an immigrant?

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Canada welcomes hundreds of thousands of immigrants every year, but the process for becoming a permanent citizen and eventually a citizen can be complicated. There are a number of different steps and criteria that the federal government evaluates when determining who becomes a permanent resident. 

One of those criteria is a nomination from the province. If you’re looking to move to Ontario, for instance, the province must nominate you often based on your skills and experience that would benefit the local economy. 

The Ontario Immigrant Nominee Program is an initiative that enables the province to evaluate and endorse foreign workers, international students, and entrepreneurs for permanent residence. There are nine streams:

Those either starting or looking to buy a business are likely eligible for the Entrepreneur stream. In that stream, ONIP will even help match eligible entrepreneurs with suitable business-for-sale opportunities. The process kicks off by you first expressing your interest, which is distinct from an application in the sense that you must then be invited to apply based on your expression of interest (EOI). Think of it as a pre-evaluation. 

There are a few important caveats and limitations, however, before you begin. In order to be eligible…

  • The entrepreneur must invest at least $200,000CAD of their own funds to establish and operate the business.
  • At least 10% of their total investment must go towards growing or improving the business. 
  • The entrepreneur must have a verifiable and lawfully obtained net worth of at least $400,000 CAD.
  • The entrepreneur must have at least two years of relevant business experience from the last 60 months. 
  • They must take over ownership (the person they buy the business from cannot retain partial ownership). 
  • The business must have been owned and operated by the same person for at least 60 months prior to the purchase.
  • The new owner must retain the existing permanent full-time jobs at the business. 

There are also a few types of businesses that are not eligible for ONIP. These include:

  • Automated car washes
  • Holding companies
  • Laundromats
  • Pawnbrokers
  • Payday loan and related businesses
  • Scrap metal or tire recycling
  • Any business involved in pornography or sexually oriented services
  • Businesses previously owned by ONIP nominees or investors

For all other eligible businesses, search here; and for more information on the steps to apply and whether you may be eligible, visit the province of Ontario’s website.

 

Opinions expressed here by contributors are their own.

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Buying a business as an immigrant?
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