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Entrepreneurs will be require to own and actively manage businesses in Canada that will contribute to the economy and create jobs.
- Who can apply as an Entrepreneur Immigrant? >>>
- Details of Your Business in Canada >>>
- Definitions >>>
1. Who can apply as an Entrepreneur immigrant?
An entrepreneur means an immigrant who:
- has a business experience;
- has a net worth of at least CDN $300,000;
- has indicated to the Minister, in writing and
establishes to the satisfaction of a visa officer, that he/she intends
and has the ability to "control" and provide active and
ongoing participation in the management of a "qualifying Canadian
business" for a minimum of one year where at least one incremental
"full time job equivalent" is created for one or more
permanent resident other than the Entrepreneur and his/her dependant; and
- has entered into an irrevocable "letter
of credit" with a "Canadian Financial Institution"
to make an investment on the Entrepreneur's behalf in the event
that the entrepreneur does not meet the requirement in (3) above.
The last section (4) refers to a proposal indicating that if the
entrepreneur cannot meet the conditions on his visa, the letter
of credit will be transferred into the Investor program.
An Entrepreneur has 3 years (no longer 2 years) to satisfy the
terms and conditions associated with his/her permanent residence
and if he/she cannot fulfill them in that time frame, the letter
of credit would be transferred automatically.
The entrepreneur who meet the definition then will be assessed against five selection factors. The pass mark is 35 points.
2. Requirements of Business in Canada
<Qualifying Canadian Business>
The definition of "qualifying Canadian business" is a business which would correspond to at least 2 of the following 4 criteria:
- equivalence of 2 full time jobs per year
- sales of at least CDN $250,000 per year
- profits of a at least CDN $25,000per year
- assets of at least CDN $125,000 at the end of the year
During the first two years, the Entrepreneur Immigrant must report
regularly to an officer at a Citizenship and Immigration Centre.
3. Definitions
<Business Experience>
"Business experience", in respect of an entrepreneur, means the management of a "qualifying business" and the control of a "percentage of equity" of the "qualifying business" for at least two years in the period beginning five years before the date of application for a permanent resident visa and ending on the day a determination is made in respect of the application.
<Full-time Job Equivalent>>
"Full-time job equivalent" means 1,950 hours of paid employment.
<Net Assets>
"Net assets", in respect of a "qualifying business" or a qualifying Canadian business, means the assets of the business, minus the liabilities of the business, plus shareholder loans made to the business by a foreign national and their spouse or common-law partner.
<Net Income>
"Net income", in respect of a "qualifying business" or a qualifying Canadian business means the after tax profit or loss of the business plus remuneration by the business to a foreign national and their spouse or common-law partner.
<Net Worth>
"Net worth", in respect of an entrepreneur, means the fair market value of all of the assets of the entrepreneur and their spouse or common-law partner minus the fair market value of all of their liabilities.
<Percentage of Equity>
"Percentage of equity" means
- in respect of a sole proprietorship, 100 per cent of the equity of the sole proprietorship controlled by a foreign national or their spouse or common-law partner;
- in respect of a corporation, the percentage of the issued and outstanding voting shares of the capital stock of the corporation controlled by a foreign national or their spouse or common-law partner; and
- in respect of a partnership or joint venture, the percentage of the profit or loss of the partnership or joint venture to which the foreign national or their spouse or common-law partner is entitled.
<Qualifying Business>
"Qualifying business" means a business -- other than a business operated primarily for the purpose of deriving investment income such as interest, dividends or capital gains -- for which, in each of any two years in the period beginning five years before the date of application for a permanent resident visa and ending on the date a determination is made in respect of the application, there is documentary evidence of any two of the following:
- that the "percentage of equity" multiplied by the number of full time job equivalents is equal to or greater than two full-time job equivalents per year;
- that the "percentage of equity" multiplied by the total annual sales is equal to or greater than CDN $500,000;
- that the "percentage of equity" multiplied by the "net income" in the year is equal to or greater than CDN $50,000; and
- that the "percentage of equity" multiplied by the "net assets" at the end of the year is equal to or greater than CDN $125,000.
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