Questions to Ask When Buying a Business in Canada

Vancouver's cosmopolitan population can be a great entry point for established businesses.

Canada's diverse population and strong economy have driven up international investments in recent years. Whether it is an Internet start-up in Toronto or an oil company in Alberta, the average business owner can make a profit in Canada if he takes the right precautions. Consult with your business lawyer, real estate agent and staff if you lack familiarity with Canadian culture.You should conduct extensive research into business laws, corporate taxes and demographic information before setting foot on Canadian soil.

Things You'll Need

• Provincial business license Business plan

Instructions

1. Consult with an experienced business lawyer in Canada to get your questions answered before opening a new business. Heydary Hamilton PC has offices in Toronto and Ottawa for business owners looking for advice on new ventures. Bring questions about business registration, taxes and insurance issues to your lawyer before proceeding.

2. Keep track of the conversion rate between the Canadian dollar and the U.S. dollar to answer questions about assets available for Canadian ventures. Use websites like XE.com to convert your start-up funds into Canadian dollars to help you budget for office space, wages and raw materials.

3. Examine Canada's corporate tax policies with your lawyer to determine how much you will pay each year to the federal government. As of 2008, the Canadian federal government applies a 19.5 percent charge on business income each year.

4. Attend open houses by Canadian businesses offering franchise opportunities to resident and international investors. Ask questions about start-up funds, franchise policies and potential profits from representatives of Canadian businesses like Pizza Pizza or Pro Fleet Care.

5. Send out inquiries to business experts in each Canadian province to find booming industries with lower barriers to entry. Your research will show that businesses cultivating natural resources in Alberta and improving the marine industry in Nova Scotia can be quite successful due to ongoing demand.

6. Locate your province's business registry to file your name and your articles of corporation to officially get started as a Canadian business owner. The British Columbia OneStop Business Registry offers a list of the fees, paperwork and supporting materials needed to file your company's name properly.

7. Explore pricing and geographical access options through Canadian distributors to get your products out to the right retailers. Ask representatives of distributors like

Tips & Warnings

• Contact business publishers in Canada to find magazines and newspapers listing businesses for sale. The Canadian Business Press puts out several publications highlighting the business climate in Canada as well as business opportunities from Vancouver to Nova Scotia.

• Avoid upsetting French Canadians in your region by asking Canadian business experts about the country's policy on bilingualism. The Official Languages Act of 1969 compels businesses, provincial governments and federal agencies to provide services in French and English. Your business should label products in both languages if you hope to reach French minorities outside of Quebec or English residents of Quebec.

Resources

• British Columbia's OneStop Business Registry
• Canadian Business Press
• Heydary and Hamilton PC
• Pizza Pizza franchises
• XE.com Conversion Tool