Immigration To Canada Through Business Ownership

A Guide for Foreign Investors Seeking to Purchase a Business in Canada.

For foreign investors or entrepreneurs looking to relocate to Canada, purchasing a pre-existing business in Canada can be an effective means of becoming eligible under the Entrepreneur Work Permit Program.

Identifying a robust business with significant growth potential can be a challenging task when undertaking this immigration process. You must choose a business that aligns with your skills, experience, and financial objectives, while also satisfying the criteria established by Canadian immigration authorities.

This article will provide insight into how foreign entrepreneurs can locate the ideal business to purchase in Canada.

• First, prioritize businesses that align with the preferences of the Canadian immigration authorities if you intend to move to Canada as a business owner or operator. To gain approval, you must show that your business activities will bring significant economic advantages to Canada. You can establish this in various ways, such as:

Choice 1: Purchasing a business that operates in essential economic industries or sectors;

Choice 2: Purchasing a business that conducts activities with significant benefits; or

Choice 3: Making a considerable investment in a business that generates job opportunities for Canadian residents.

Choice 1: here's the list of preferred industries and sectors for immigration purposes in Canada:

• Agriculture and agri-food, including food/beverage production and food processing: Wineries, breweries, distilleries, fruit and vegetable processing, organic food production, and honey production.

• Information and communication technology (ICT): Artificial intelligence, virtual reality, augmented reality, e-commerce, and web development.

• Aquaculture: Seafood hatcheries, aquatic plant cultivation, and fish feed production.

• International education: Study abroad agencies, international student recruitment agencies, and homestay programs.

• Aviation/aerospace: Aerospace manufacturing, aircraft leasing, and aviation training.

• Mining and mineral development: Oil sands extraction, diamond mining, and gold mining.

• Biomedical (including research and development, manufacturing, etc.): Medical imaging, medical simulation, medical software, and medical testing labs.

• Forestry and logging: Pulp and paper mills, wood product manufacturing, and wood pellet production.

• Cybersecurity: Incident response services, threat intelligence, and security awareness training.

• Registered patents: Patent litigation firms, patent valuation services, and patent portfolio management.

• Cultural industries: Art galleries, bookstores, radio broadcasting, and television production.

• Transportation: Ride-sharing services, air cargo, and courier services.

• Energy or natural gas sector: Geothermal energy development, hydrogen fuel cell manufacturing, and carbon capture technology.

• Tourism, tourism products, attractions, services, and facilities: Eco-tourism, outdoor adventure tours, tourism marketing, and tourist information centers.

• Exports: Export financing, trade show management, and international logistics.

• Fintech: Peer-to-peer lending, digital wallets, and financial analytics.

• Farming: Greenhouse farming, aquaponics, and beekeeping.

• Film and video production: Video game development, motion graphics, and visual effects.

• Financial services: Credit unions, investment advisors, and mutual fund companies.

• Green economy: Electric vehicle manufacturing, green energy consulting, and sustainable agriculture.

• Advanced manufacturing: 3D printing, robotics, nanotechnology, smart manufacturing, industrial automation, aerospace manufacturing.

• Artificial intelligence (AI): AI startups, machine learning, natural language processing, computer vision, data analytics.

• Clean technology: Sustainable transportation, energy-efficient buildings, waste reduction and recycling, water purification, air pollution control.

• Construction: Residential construction, commercial construction, infrastructure construction, project management, building design.

• Creative industries: Advertising agencies, graphic design studios, web development firms, fashion design, product design, architecture.

• Health and life sciences: Hospitals and healthcare facilities, medical laboratories, biotech research, medical imaging, clinical trials.

• Indigenous businesses and economic development: Indigenous-owned businesses, Indigenous tourism, cultural centers, renewable energy projects, community development.

• Real estate: Real estate development, property management, real estate investment, home inspection and appraisal, real estate brokerage.

• Retail: Online retail, brick-and-mortar stores, e-commerce platforms, luxury goods retailers, franchising.

• Water technology: Water treatment, Desalination plants, Water purification systems for homes and businesses

Choice 2: Purchasing a business that conducts activities with significant benefits:

Here are the examples of businesses that could be considered to have "significant benefit" activities, which may be appealing to Canadian immigration authorities:

• Renewable energy production - Solar panel manufacturing or installation, wind farm development, biomass energy production.

• Sustainable agriculture - Organic farming, regenerative agriculture, urban agriculture.

• Recycling and waste management - Recycling facilities, waste-to-energy plants, composting operations.

• Social impact investing - Socially responsible investment firms, impact-focused venture capital funds, crowdfunding platforms for social enterprises.

• Healthcare technology and services - Telehealth companies, medical device manufacturers, healthcare consulting firms.

• Educational institutions and services - Private schools, tutoring and test prep services, online education platforms.

• Community development and revitalization - Real estate development companies focused on urban renewal, affordable housing nonprofits, community land trusts.

• Green building and construction - LEED-certified building contractors, green roof installation companies, eco-friendly building materials suppliers.

• Sustainable tourism and hospitality - Eco-tourism resorts, sustainable hotels and lodges, adventure travel companies.

• Ethical and fair trade retail - Fair trade coffee shops, eco-friendly clothing stores, sustainable furniture retailers.

• Environmental consulting and services - Environmental impact assessment firms, remediation and restoration companies, green energy consulting firms.

• Telecommunications infrastructure development - Fiber optic cable installers, mobile network infrastructure builders, satellite internet service providers.

• Biotechnology and life sciences research - Biotech startups, pharmaceutical research companies, contract research organizations.

• Humanitarian aid and disaster relief - Disaster response nonprofits, humanitarian aid organizations, disaster relief consulting firms.

• Public transportation and infrastructure - Public transit authorities, transportation planning firms, bike-sharing programs.

• Arts and culture organizations - Nonprofit theater companies, public art installations, community arts centers.

• Affordable housing development - Affordable housing developers, community land trusts, housing cooperatives.

• Indigenous-owned businesses and enterprises - Indigenous tourism operators, indigenous arts and crafts businesses, indigenous language instruction services.

• Corporate social responsibility consulting - CSR consulting firms, sustainable supply chain management consultants, impact measurement and evaluation services.

• Youth employment and training programs - Youth employment nonprofits, vocational training programs, apprenticeship programs.

• Mental health services - Mental health clinics, counseling services, online therapy platforms.

• Clean water access and management - Water treatment plants, water distribution and management services, water quality testing labs.

• Diversity, equity, and inclusion consulting - DEI consulting firms, cultural competency training services, bias awareness and mitigation training.

• Microfinance and financial inclusion - Microfinance organizations, peer-to-peer lending platforms, credit unions.

• Renewable materials manufacturing - Plant-based plastics manufacturers, bamboo and hemp textile production, mycelium-based packaging companies.

• Sustainable transportation - Electric vehicle manufacturers, bike and scooter sharing services, carpooling apps.

• Social entrepreneurship - Social enterprise incubators, impact-focused business accelerators, B Corps.

• Digital education and training - Online training platforms, e-learning software providers, edtech startups.

• Healthy food production and distribution - Farm-to-table restaurants, organic food distributors, community-supported agriculture programs.

• Elder care and support services - Senior care homes, in-home elder care services, technology solutions for aging in place.

Choice 3: Substantial Economic Influence "Making a considerable investment in a business that generates job opportunities for Canadian residents.

• Allocation of a minimum of $250,000 into a Canadian enterprise;

• Maintenance and creation of employment for at least 2 Canadian citizens;

• A sustainable and feasible business model capable of producing enough revenue to compensate all staff salaries."

Here are some possible examples of Canadian enterprises that you could invest in:

• A tech startup that specializes in software development or artificial intelligence

• A manufacturing business that produces machinery or industrial equipment

• A restaurant or café chain that has potential for growth and expansion

• A renewable energy project, such as a solar or wind farm

• A construction company that builds affordable housing or commercial buildings

• A retail business that sells Canadian-made products or souvenirs

• A health and wellness center that offers services like acupuncture, massage therapy, and fitness classes

• A tourism company that organizes adventure tours or cultural experiences

• A consulting firm that provides expert advice on business strategy, marketing, or finance

• A real estate development project, such as a new residential or commercial complex.

Please Note: 

By investing a substantial amount of money into a Canadian enterprise, you can create employment opportunities for Canadian citizens, which is a requirement for demonstrating significant economic benefit. Furthermore, if you invest in a business that operates in a key economic sector or engages in significant benefit activities, your investment will have an even greater impact on the Canadian economy. Therefore, Choices 1, 2, and 3 are all interconnected and can be used in combination to demonstrate significant economic benefit and increase your chances of obtaining Canadian immigration approval as a business owner or operator.

Industries that typically receive less favorable treatment from the IRCC include:

• Bed and breakfast establishments

• Automated car wash operations

• Hobby farms and home-based businesses

• Scrap metal recycling

• Payday loan, check cashing, money changing, and ATM businesses

• Businesses that sell used goods (excluding those that offer value-added services like repairs, refurbishing, or recycling)

• Pawnbrokers

• Real estate brokerage, insurance brokerage, or business brokerage

• Tanning salons

• Real estate development activities

• Businesses involved in the production, distribution, or sale of pornography or sexually explicit products or services, or the provision of sexually-oriented services

• Coin-operated laundry businesses

• Trading businesses that deal in goods (e.g. import/export), unless they can demonstrate value-add.

Our Advice when buying a Business:

Regardless of the approach you take, it's essential to ensure that the enterprise you choose satisfies the following requirements:

• The company is active and operational, ideally with a track record of at least three years.

• It employs a minimum of two staff members, and preferably more.

• It generates enough revenue to cover the majority of its expenditures (at least $300,000 or more).

• Your expertise or experience aligns with the type of business you intend to establish in Canada.

• There's a high potential for continued commercial success.

Here is How We Can Help with Buying a Business in Canada:

Regrettably, a number of immigrants often purchase businesses solely for immigration purposes, which may not align with their interests, skillset, and financial goals. However, with our extensive local network and in-depth knowledge of Canadian business culture, we can aid you in discovering opportunities that are suitable for both your immigration goals and personal preferences.

• Our team will conduct thorough research and analysis to pinpoint the most appropriate business that meets your business and immigration requirements. We will review the business's legal documentation and financial records to ensure that it is legitimate and profitable, and that it will satisfy your immigration objectives. Ultimately, we will oversee the purchase transaction on your behalf.

• At Parkway Immigration, we specialize in guiding foreign investors who intend to relocate to Canada and acquire a business. You can focus on your business, while we handle your permanent residency and, eventually, your Canadian citizenship.

If you are a foreign entrepreneur or investor looking to buy a business in Canada, feel free to contact our team to start the process today.