Buying, merging, amalgamating or changing legal structure of a business

Buying a business

In most cases, when buying a business in Manitoba, that business’ account history with the WCB will also transfer to you. This includes the claims cost experience of that business and the WCB rate of the business.

Ensuring the seller’s business is in good standing with the WCB

The seller should give you a Disposition of Business Enterprise Certificate that they received from the WCB. This certificate confirms there is no outstanding debt with us.

If you do not secure this, you may be responsible for any monies owing on the seller’s account.

Apply for a WCB account

Once all the paperwork is complete and you have purchased a business, you must apply for your own WCB account to provide workers compensation insurance for your workers.

Types of business acquisitions: shares vs. assets

When telling the WCB that you are buying a business, you should be able to say whether you are buying shares of the business or the business assets.

An asset sale involves the purchase of some or all of a company’s assets. Examples of common assets include land, buildings, machinery, stock, contracts, records and intellectual property.

Where the majority of the assets are sold, the claims experience and WCB rate is also transferred to the new owner.

In a share sale, the buyer purchases shares in the corporation and becomes an owner. All business assets remain with the company, it is the company owner that changes. As the new company owner, you are responsible to make sure you have the correct workers compensation coverage. You are also responsible to make sure that your payroll estimate is accurate for the calendar year.

Changes to business operations after acquisition

If you are not running the business the same way as the previous owner, the differences may warrant some changes to your WCB account.

Contact Assessment Services to confirm if any changes need to be made with your new business.