Frequently Asked Questions About Buying a Business in Vancouver
How many businesses are for sale in Vancouver right now?
There are currently 831 businesses for sale in Vancouver and Greater Vancouver on FindBusinessesForSale.com. About one-third are in the City of Vancouver, and the rest are across the Lower Mainland, mainly in Surrey, Richmond, Burnaby, North Vancouver, Langley, Coquitlam, Delta and New Westminster, with some in Abbotsford, Mission and Squamish. New listings are added every week. Save this search to get email alerts when new ones are posted.
How much does it cost to buy a business in Vancouver?
The median asking price for a business in Greater Vancouver is about $250,000, and the average asking price is $436,394. Most listings fall between $100,000 and $500,000. Here is how current asking prices break down:
- Under $100,000: about 15% of listings
- $100,000 to $250,000: about 36%
- $250,000 to $500,000: about 30%
- $500,000 to $1 million: about 12%
- Over $1 million: about 8%
Most of these prices are for the business and its equipment in leased premises. Businesses sold with the land and building cost much more.
What types of businesses are for sale in Vancouver?
Food and drink businesses make up nearly half of all Vancouver listings, including restaurants, coffee shops, pubs and brew pubs, pizza stores, bakeries and diners. Restaurants alone are close to 40% of listings. You will also find barber shops, hair salons, spas, massage businesses, convenience stores, dry cleaners, laundromats, clothing and flower shops, health and wellness clinics, car dealerships and manufacturing businesses.
Can I buy a business in Vancouver for under $100,000?
Yes. About 15% of Greater Vancouver listings are under $100,000, and about half are under $250,000. Lower-priced listings are usually small cafes, takeout restaurants, barber shops, salons and service businesses in leased premises. Sort the listings by "Price Low to High" to see them first. At this price, look closely at the lease: the rent, how many years are left, and whether the landlord will let you take it over.
Why buy a business in Vancouver?
Greater Vancouver is Canada's third-largest metropolitan area and its main gateway to Asia-Pacific trade, with the country's busiest port. Its large, diverse population and strong tourism, film, technology and construction sectors support steady demand for restaurants, retail and services. Buying an established business gives you existing customers, trained staff, supplier relationships and cash flow from day one, which is a big advantage in a market where starting from scratch and fitting out new premises is expensive.
What taxes apply when I buy a business in BC?
It depends on whether you buy the shares or the assets. In a share purchase, you buy the company itself, and GST and PST generally do not apply. In an asset purchase:
- GST (5%): If you buy all or substantially all of the business's assets and you are GST-registered, the buyer and seller can usually file a joint Section 167 election so that no GST is charged.
- PST (7%): BC PST is generally payable on taxable goods you buy as part of the sale, such as equipment, furniture and vehicles. Inventory you buy to resell is usually exempt.
- Property Transfer Tax: This applies if the sale includes land or a building.
Rules change, so have an accountant or lawyer review the deal structure before you sign.
What licences do I need to run a business in Vancouver?
You need a business licence from the city where the business is located. Vancouver, Surrey, Richmond, Burnaby and each other municipality issue their own. Restaurants and other food businesses also need a health permit from Vancouver Coastal Health or Fraser Health, depending on the location. Pubs, bars and restaurants that serve alcohol need a liquor licence from the BC Liquor and Cannabis Regulation Branch (LCRB), and a liquor licence transfer must be approved before the new owner can operate it. Make your offer conditional on getting all the licences you need.
Can I take over the lease when I buy a business?
Usually, yes, but only with the landlord's written consent. Most Vancouver businesses for sale operate in leased premises, so the lease is often the most important part of the deal. Before you buy, check the monthly rent including property taxes and operating costs, how many years are left, any renewal options, and whether the landlord will approve an assignment of the lease or a new lease in your name. A short lease or a large rent increase can change what a business is worth.
How do I finance buying a business in Vancouver?
Most buyers combine a down payment, often 20% to 30% of the price, with a bank loan, a loan from BDC (Business Development Bank of Canada), or a loan under the federal Canada Small Business Financing Program. Seller financing, where the owner lets you pay part of the price over time, is also common for small businesses. Buyers aged 18 to 39 may also qualify for financing and mentoring through Futurpreneur Canada. Get pre-approved before you make an offer.
How long does it take to buy a business in Vancouver?
Buying a small business typically takes 2 to 6 months from first contact to closing. That includes reviewing the financial statements, making a conditional offer, due diligence, arranging financing, getting landlord approval for the lease, transferring licences and closing with your lawyer. Deals that include a liquor licence or real estate usually take longer.
Can newcomers or foreign investors buy a business in Vancouver?
Yes. Anyone can buy a business in Vancouver, including newcomers to Canada and foreign investors. However, buying a business does not on its own give you permission to live or work in Canada. The BC Provincial Nominee Program (BC PNP) has offered entrepreneur immigration streams, but the requirements and availability change, so speak to a licensed immigration consultant or lawyer before you make an offer.
Should I look at businesses for sale outside the City of Vancouver?
Often, yes. About two-thirds of the listings on this page are in other Lower Mainland cities such as Surrey, Richmond, Burnaby, Langley and Coquitlam, where rents and asking prices can be lower, and many neighbourhoods are growing quickly. Choose based on where your customers are, how far you are willing to commute, and the cost of the lease.
