Investing and wanting to be profitable is undeniable in the eyes of entrepreneurs. For those interested in the Canadian business market, making a profitable investment means buying a good business. So how can a Canadian business be assessed? The things mentioned below can be a guideline for investors, especially for you who intend to develop long-term and settle in Canada.
1) Buy an operating business and have operated for at least one year up to the present time
When investors establish or buy a business with the purpose of immigrating to Canada, choose a business that has been in operation for many years and has their own core staff.
For the companies you intend to buy, which are newly established or have operating time of less than 12 months, during the process of making settlement documents, you will have to carefully prepare all documents to prove Show your business is really up and running. In other words, business owners now need to show the Government of Canada that they provide a real product or service, have costs, and have revenue. Or you can operate the newly purchased business within 12 months before applying for permanent residence in Canada.
2) Buy a business with good turnover in the last 2 to 3 years
When buying a Canadian business for the purpose of immigrating to Canada and becoming a permanent resident (PR), you must always ask the transferor to provide all the basic documents related to the company, including:
Articles of incorporation and agreement of shareholders.
Official tax return for the past 3 years, also known as T2. This includes: Form 100 – Balance sheet and Form 125 – Statement of business results.
T4 is also known as Employee Salary Expense Report for the most recent years.
Combined Goods and Services Tax (GST) and Value Added Tax (HST) reporting.
Initial lease agreement.
All contracts and agreements related to the operation of the company’s business.
When checking your tax returns, make sure you don’t skip forms 100 and 125. Investors need to check the company’s sales figures for the previous year. Also, check your Goods and Services Tax (GST) and Combined Value Added Tax (HST) reports to get an idea of your business’s current revenue.
To be eligible for permanent residency (PR), a business should have a large revenue stream. We recommend investors to buy a company with an annual turnover of CAD 250,000 or more. Besides, business owners also need to check the net profit to make sure the company is profitable. Even if the immigration application reviewers are not too strict about the profits of the business, ensuring profits is also a very effective way to support the issue of paying staff salaries and other business expenses. .
3) Buying a business enterprise in the field related to your expertise
One of the main concerns of the Department of Immigration is whether investors can manage and operate the Canadian business they have purchased well.
Government employees will appreciate it if the business investors buy in Canada is related to their expertise or previous business experience. That’s why we advise investors and business owners not to buy businesses in an unfamiliar field.
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