Many immigration routes in Canada are intended to draw in wealthy business immigrants. The Owner-Operator Program (OOP) is one such route!
It enables foreign investors to own a business in Canada and move there with their families to obtain permanent residency.
You can apply for a work visa under the Federal Temporary Foreign Worker Program (TFWP) as a management-level employee if you buy an already-existing Canadian business.
Meanwhile, the updated TFWP regulations for new business owners are receiving considerable attention both domestically and globally.
As such, successful temporary work visa applicants and their families have the option to become permanent residents under a province’s immigration program or as federal skilled workers under Express Entry after less than a year.
In this blog, we will explore how you can buy a business in Canada and relocate with your family.
What is the Owner-Operator Program?
Through the Owner-Operator program, foreign owners of Canadian businesses are able to relocate permanently to Canada and do business there.
Foreign investors must buy an existing Canadian business or open a new one to be eligible for this program. They must also prove to Canadian immigration authorities that their venture is legitimate and will employ Canadians.
Requirements to Apply for the Owner-Operator Program
- Possess at least three years of managerial or business ownership experience.
- Have solid financial resources to purchase a business in Canada.
- You must have sufficient language abilities in either English or French to vigorously work as a manager in the business.
- Have the capacity and urge to operate a business in Canada and participate in the daily management of the company in Canada.
What Kind of Businesses Can You Buy in Canada?
Before buying a business in Canada, foreign investors had to take into account the Owner-Operator program’s requirements.
The business must, in essence, satisfy the following requirements to support its owner-operator’s application for permanent residence in Canada:
- To be considered active and operational in Canada, a company needs to have clients, at least one employee, and a physical location—not a home office or virtual one.
- The company must demonstrate strong financial success and adequate cash flow to cover the salary of the foreign investor.
- Before a foreign investor can apply for permanent residence, the company must have been in operation for the previous three years or at least for a minimum of one year.
- At least 51% of the Canadian company’s shares must be directly owned and controlled by the foreign investor.
- The Canadian business must prove that conducting its operations requires the foreign investor’s presence in Canada.
Below are a few key sectors you might consider buying a business in:
- Agriculture and food processing
- Natural resources
- FinTech
- Cybersecurity
- Aviation
What are the Pros and Cons of Buying a Business in Canada?
Pros of the Owner-Operator Program
- There is no minimum investment required for the Owner-Operator program, but the investment must make sense in light of the company plan.
- Any nationality can participate in the Owner-Operator program.
- There is no requirement for a pre-existing foreign company.
- Although there isn’t a minimum language requirement, international investors should speak French or English at an intermediate level because they will frequently be challenged to prove that they can run a business in Canada.
- Through this scheme, foreign investors can seek permanent residence in Canada.
Cons of the Owner-Operator Program
- The Owner-Operator program is not suitable for new businesses.
- The business in Canada needs to be up and running, with an adequate financial record.
- Participation in this initiative requires funding to acquire at least 51% of the shares, and success is not assured.
- For tax purposes, there are more suitable models.
The Process of the Owner-Operator Program
Applying to the Owner-Operator program requires two steps. The Canadian company that the foreign investor purchases must apply to the Employment and Skill Development Canada (ESDC) office to receive a favorable Labor Market Impact Assessment (LMIA).
After the business has achieved a good LMIA, the foreign investor can apply for permanent residency under the Express Entry program and earn a work visa, which is typically valid for two years.
How Much Investments is Required for the Owner-Operator Program?
There is no minimum investment amount specified in the law regarding the Owner-Operator program. However, investors should keep in mind the following factors when it comes to the investment amount:
- Purchasing an owner-operator program-eligible company in Canada would cost at least $100,000 and above; robust businesses with sales of at least $500,000 and healthy net profits for the owners would cost much more, starting at $200,000.
- Additionally, investors ought to budget at least $50,000 for operating their recently bought Canadian company for a full year.
- In Canada, the business must additionally make enough money to pay the owner’s salary (which is between $50 and $58 per hour), rent, and the wages of its Canadian staff. This means that the business must make at least $250,000 in gross sales annually.
What are the Required Documents?
Foreign investors must provide different sets of documents to the Canadian authorities at various stages of the process.
The LMIA applications stage: The foreign investors must include the following documents with their application:
- Provide registration documentation for a Canadian firm.
- Evidence of the foreign national’s new ownership of the Canadian business, such as a buy and sale agreement, share certificates, or other supporting documentation.
- Canadian corporate tax returns for the business
- Financial records for the business in Canada, including bank statements, Schedules 100 and 125, asset ownership, and GST/HST filings.
- Evidence of the company’s ongoing operations in Canada, such as invoices, contracts with clients or customers, websites, marketing materials, and office leasing agreements
- A copy of the passport belonging to a foreign owner
- Resume of a foreign owner Business plan (sometimes needed for newly founded businesses)
Second stage of the application process: In addition to undergoing background checks on their health and criminal histories, foreign investors would be expected to furnish additional details regarding their schooling, professional background, and managerial experience.
The list of extra personal documents that foreign investors must have ready in advance is as follows:
- Educational credentials (ECA report is required for permanent residence application)
- Proof of business experience and managerial experience, like employment confirmation letters, salary information, business ownership documents or reference letters from former bosses or clients
- Status documents – marriage certificate, birth certificates for children
- English or French language test results (highly recommended)
- Bank statements for the past 6 months
- Passport photo
- Proof of undergoing advanced medical assessment
- Police clearances for every country where the applicants spent more than 6 months
What is the Processing Time for this Program?
On average, it takes around 6 months from the start of the process to the LMIA-based work permit approval.
However, it may take much longer depending on the type of business foreign investors are buying and whether or not the LMIA is intended to support the foreign investor’s permanent residence application.
Final Thoughts
One of the easiest methods to relocate to Canada with your family is to buy a business. Also, you can find reasonably priced firms to purchase and don’t need to make a large financial commitment.
However, the procedure’s strict criteria and formalities may make it appear not easy. To avoid these complications, you should work with professionals to undergo it.
Frequently Asked Questions
Can I buy Canadian citizenship?
No, because there are no immigration schemes in Canada that let you “buy citizenship” or “citizenship by investment.” However, there are business immigration programs and channels that allow you to become a citizen of Canada.
Before applying for Canadian citizenship, you must gain permanent residence, invest in a business in Canada (either buy or start your own), and live in Canada for a minimum of three years.
To obtain Canadian citizenship, foreign investors should prioritize becoming permanent residents.
Can I start a business in Canada without PR?
To register a business in Canada, you do not need to be a citizen or permanent resident of Canada. But you can only work in your business if you have a legitimate work permit.
It would be beneficial if you allowed Canadians to run your company while you obtained your work permit in Canada.
Can I get an investor visa easily?
Nothing about corporate immigration to Canada is simple!
These applications for golden visas, as they are commonly known in Canada, are typically rather complicated and call for expert assistance with both the immigration portion of the application and the business case presentation for your intended investment.
But when done right, business immigration applications typically receive approval rates of 90% or higher (at least in our practice). They might provide an effective route for entrepreneurial immigrants to relocate to Canada through investment.
What type of business should I buy for immigration to Canada?
We advise investing in a company that you are familiar with, can support over the long run, and understand.
In addition, you should focus on immigration concerns, invest in a ” for-profit ” firm, and concentrate your time and energy on growing it.