Entrepreneurs and business owners: have you considered hiring a successor from the immigrant community to ensure business continuity ?
You’ve dedicated years to building your business. But when the time comes to pass the torch, succession becomes a critical question. What if no family member or close contact is available or interested in taking over the result of years of hard work?
Business takeover: a strategic option
External successors are often seen as “unknowns”, which can raise concerns about their ability to continue your company’s operations.
Hiring a French-speaking immigrant under a work permit can be an interesting option to prepare for business succession. Why?
First, it allows you to broaden the pool of potential candidates to take over your business compared to local applicants. This approach offers:
- To strengthen your confidence in the succession process;
- To ensure you have a motivated and competent successor to take over;
- To train them in managing your business while passing on its core values;
- To ensure a smooth transition without disruption through the immigration options available to French-speaking immigrants with a business succession project in Quebec.
In addition to becoming familiar with your work methods, your clients, your partners, and more broadly, your company, this option gives the prospective buyer several months to fully finalize the acquisition of your business.
Let’s take an example of a possible path, in its simplified version:
- Initial contact: a French-speaking entrepreneur expresses interest in your company for its area of expertise. You engage in discussions with them.
Please note: Repreneuriat Québec (formerly CTEQ – Centre de transfert d’entreprise du Québec) connects business sellers and buyers in Quebec.
- Agreement and procedures: if the project appears viable, consult immigration professionals to learn about the options available for your French-speaking entrepreneur to come to Quebec.
- Gradual integration: the buyer arrives in Quebec with a work permit – employed by you – to ensure a smooth transition and begin the acquisition process. From an immigration perspective, they must also be supported by an accredited business succession organization (e.g., Repreneuriat Québec).
Immigration pathway and possible steps to employ a future buyer under a work permit. Example: accommodation establishment to be taken over in Quebec, in the Saguenay region.
First step: agreement and job offer
You and your potential future buyer agree on a job offer for the position of Director of Accommodation Services. Your future buyer will be paid more than $34.62 per hour.
This is a skilled position, paid above the median wage in the province of Quebec. To obtain a work permit, a Labour Market Impact Assessment (LMIA) is required, including a 30-day job posting.
Second step: LMIA process
On March 1, you start the process. By March 31, the minimum 30-day posting period is complete. You can then submit the LMIA application, which you will have prepared during the posting period, and also submit a Quebec Acceptance Certificate (CAQ) application for your worker.
On April 1, you submit the LMIA/CAQ application. Please note, the job postings must remain active throughout the processing of the application.
Processing takes approximately 4 to 5 months.
Third step: work permit process
On August 1, you receive a positive decision regarding the LMIA/CAQ application. A positive or neutral LMIA is then issued to you. Your worker has six months to submit their work permit application.
Two options are then available to them:
- Submit the work permit application online from their country of residence. If it is France, processing takes about 2 months.
- Submit the application directly upon arrival at the border, if they are a visa-exempt national. This helps reduce processing times.
If the buyer is accompanied by a partner, the partner may obtain an open work permit of the same duration if the application is submitted jointly. This is only possible because the principal applicant holds a skilled position.
The buyer will obtain a work permit valid for three years.
Fourth step: arrival and start of the position
Assuming the buyer submits their work permit application online and does so as soon as the LMIA/CAQ is received, relocation to Canada and starting the position could take place as early as October or November.
Fifth step: transition and acquisition offer
To be eligible for a Quebec Selection Certificate (CSQ) under the Business People Program – Business Takeover stream, the worker/successor must have completed the acquisition of the company.
Another criteria is to demonstrate a minimum of 24 months of employment in Quebec at the time of submitting the application. This gives you at least 24 months to ensure a smooth transition.
Step Six: for the successor
Once the successor meets the criteria to apply for a CSQ under the Business People Program – Entrepreneur Stream, Acquired company profile, they can submit their application. Processing times range from a few weeks to several months. Once the CSQ is obtained, the permanent residence application must be submitted to the federal authorities.
In summary
This succession process requires planning and several months of preparation, but it offers a smooth transition and ensures the sustainability of your business.
Learn more about the program: Taking over a business in Quebec: Business takeover as a strategic path to permanent residency
Do you have questions about the business takeover program? Or about immigration issues for your temporary foreign workers?
Contact our professionals, available to answer your questions and explain the options available to you.