Existing Businesses

Investing in Existing Businesses in Canada

Much like the process of initiating start-ups, one does not have to travel to Canada nor have an immigration status to purchase an already established business. Again, the law allows 100% purchase and ownership of companies by foreigners. The only circumstance that can limit such a privilege is the case of companies where national security interests exist. However, there are rare cases of such kind, and those that exist are relatively large companies.

Markedly, the process of acquiring an operating enterprise is relatively demanding compared to that of starting a new one. Interested customers must do due diligence and establish the legitimacy and productivity of the business. This activity requires the services of Chartered Public Accountants and lawyers to perform background checks, audits, and administrative responsibilities before effecting the sale of a business.

The ownership options of existing businesses exist in minority shareholding of 1-49% or majority shareholding of 51-100%. The details of each of these options differ significantly depending on the way sellers and buyers get to agree. In general, processes of purchasing businesses in Canada are more complex and lengthier than start-ups. The procedures also involve the considerations and implications of specific business taxes like back taxes.

Purchasing an existing business in Canada comes with numerous benefits like an established market presence, loyal customers, reliable partnerships, and established vendor collaborations. Our organization has reputable professionals who connect prospecting foreign buyers to preferred and trustworthy partners in Canada.