Business Immigration & Visa to Canada: Investor, Entrepreneur & Self employed class:

Canada business immigration regualtions allow successful business people to obtain immigration of Canada. There is a main Federal business Immigration program which has three sub classes - Investor program, Entrepreneur program & Self employed program. Province of Quebec, Manitoba, British Columbia, Alberta, Saskatchewan, Prince Edward Island, New Brunswick and New Found land have their own Business immigration program. All programs are based on the Federal program but most popular one is Quebec business immigration program.

We are an immigration consulting firm assisting individuals, professionals, skilled workers and business people to immigrate to Canada. Our firm provides legal advice on a variety of issues including how to immigrate to Canada, buy and sale business in Canada, ( We have more then 250 Businesses for sale in Canada) Incorporation of the company and such related services.

Canadian Business Immigration & Visa - Federal Program:

Canada offers federal as well as provincial immigration programs such as the Quebec Investor Program under the Canada –Quebec accord.

In the past 12 months, the Canadian federal immigration program has under gone major changes. A new immigration act, namely, the “Immigration and Refugee Protection Act” came into force on 1st November 2001 and Immigration and Refugee Protection Regulations made under this act came into force on 28th of June 2002.

Though major changes have been made under these new regulations with respect to family class, refugee class and more particularly, skilled worker class, the business immigration program has not under gone significant changes. However, certain definitions such as business experience, qualifying business, qualifying Canadian business, net income, net assets, net worth, etc. has been better defined under the new regulation in order to give a more clear view of the business immigration program.
 

Section 12 of the Immigration and Refugees Protection Act provides that foreign nationals may be selected as members of the Economic Class based on their ability to become economically established in Canada.

This economic class is comprised of two streams of immigrants:

a. Skilled workers
b. Business Immigrants

The business immigrants are selected to support the development of a strong and prosperous Canadian economy in which the benefits of immigration are shared across all regions in Canada.

Regulations 88 to 109 of the Immigration and Refugees Protection Regulation 2002 provides for the selection of business immigrants to Canada.

Business immigration comprises of three sub classes:

1. Investor class: Immigration under this class started in 1986 and in the last five years 7039 investors have landed in Canada and over $2.6 billion has been invested.

2. Entrepreneur class: Immigration under this class started in 1983 and in last five years 9518 entrepreneurs have landed in Canada and about 43,000 jobs were created.

3. Self employed class: This immigration program started in 1978 and in last five years 4414 self-employed persons have landed in Canada.
 
 
 

1. Investor class:

Under regulation 88(1), investor means a foreign national who -

(a) Has business experience
(b) Has legally obtained a net worth of at least $800,000 and
(c) Indicated in writing that he has made or intends to make an investment of $400,000 in Canada.

For the first time under the new regulations the term “Business Experience” has been defined. Business Experience means that the investor must have either:

(a) Managed a qualifying business and controlled a percentage of equity of a qualifying business for at least 2 years in the period beginning 5 years before the date of application, or
(b) They must have managed at least 5 full time job equivalents per year in a business for at least 2 years in the period beginning 5 years before the date of application.

Also, the term “Qualifying Business ” has been defined for the first time under the new regulations. A qualifying business is defined as a business in which in each of any two years in the period beginning 5 years before the date of application and ending on the date of the interview decision, the businessman must satisfy either of the two following conditions –

1. That the percentage of equity multiplied by the number of full time job equivalents is equal to or greater than 2 full time job equivalence per year.
2. That the percentage of equity multiplied by the total annual sales is equal to or greater than $500,000.
3. That the percentage of equity multiplied by the net income in the year is equal to or greater than $50,000.
4. That the percentage of equity multiplied by the net assets at the end of year is equal to or greater than $125,000.

However, a business investment made for receiving only dividends, rents or interest does not qualify.

Applicants under the investor class must have worldwide net assets of at least $800,000. They are required to make an investment of $400,000 payable to the Receiver General of Canada. The investment is subsequently allocated to participating provinces and territories in Canada. The government uses these funds for job creation and economic development. The full amount of the investment, without the interest, is repaid to the investor after 5 years. The return of the investment is fully guaranteed by the participating provinces and territories.

Another option for an investor, if they decide not to make full investment of $400,000, is to obtain a loan of $270,000 from Canadian banks / financial institutes that are approved by the government. Investors are required to make one time investment of $130,000 only, after or before the approval of their application. The investors are not required to make any further investment and no amount is refunded to the investor at the end of 5 years.

Some interesting features of the investor program are:

1. Investors are not required to start any business in Canada, there is no age limit to apply and knowledge of either of Canada’s two official languages is not mandatory. However, the applicant and each of the family member must pass medical and security clearance. No conditions are imposed.

2. Investments are fully guaranteed by the provinces and territories participating in the program.

3. The provinces and territories control the investment during the 5 years lock-in period.

4. Under the new definition of an Investor, a senior manager of a company, who has never owned a business, but whose net worth is $800,000, can also qualify under this program.

5. A previous requirement that the investor must create his net worth by his own endeavours have been removed and has been replaced by a requirement that the net worth be legally obtained. For example, a senior manager who meets the business experience requirements and has received a big fortune from his family’s estate is eligible to apply for immigration to Canada under the investor program as per the new regulations. This would not have been possible under the old regulations.

6. Spousal assets can also be now included when calculating the net worth.

7. The Selection Grid has been changed and the passing points are now 35 out of 100, based on the following criteria - business experience, age, education, language proficiency and adaptability.

2. Entrepreneur class:

The entrepreneur class has also remained largely unchanged but certain definitions have been redefined under the new regulations that have helped to clarify certain ambiguous aspects of the old regulations. The applicants under this class are faced with two main questions: a) How much or what is the minimum investment they are required to make? and b) what size of business should they have?

Both these questions are answered under the new regulations.

Under regulation 88 (1), an entrepreneur is defined as:

A foreign national who -

a) Has business experience
b) Has legally obtained minimum net worth of $300,000
c) Has shown an intention to and the ability to:
(i) Control a percentage of equity of a Qualifying Canadian Business equal to or greater than 331/3%
(ii) Provide active and ongoing management of the Qualifying Canadian Business and
(iii) Create at least one incremental full time job equivalent for one or more Canadian citizen or permanent resident other than the applicant and his/her family members

With respect to an entrepreneur, business experience means, the management of a qualifying business and the control of equity of a qualifying business for at least 2 years in the period beginning five years before the date of application.

A qualifying business holds the same definition mentioned above under the investor class. However, the entrepreneur must be involved in the management of the business and must also have ownership of the business.

A condition is imposed on the Entrepreneur’s permanent immigrant visa and he/she will be required to open and own a Canadian qualifying business for at least a period of one year within the three years of his/her arrival in Canada.

The Canadian qualifying business for the entrepreneur is defined under the new regulations as a business operated in Canada by an entrepreneur for which, in any year within three years after the day the entrepreneur becomes a permanent resident, any of the following conditions are satisfied -

1. The percentage of equity multiplied by the number of full time job equivalent is equal to or greater than 2 full time job equivalent jobs per year
2. The percentage of equity multiplied by the total annual sales is equal to or greater than $250,000
3. The percentage of equity multiplied by the net income in the year is equal to or greater than $25,000
4. The percentage of equity multiplied by the net assets at the end of year is equal to or greater than $125,000

Some interesting features of the entrepreneur program are:

1. The entrepreneur is required to start business in Canada, however, no age limit applies and knowledge of either one of Canada’s two official languages is nit mandatory. The applicant and each of his/her family member must pass medical and security clearance. No conditions are imposed.

2. The entrepreneur must have a net worth of $300,000 and he himself must make the investment and start and manage the business. However, the old requirement that the net worth be created by the entrepreneur’s own endeavours has been removed and is replaced by a requirement that the net worth be legally obtained, provided the applicant meets other requirements of the regulations.

3. A company manager of a company who has never owned a business outside of Canada cannot apply under the entrepreneur class.

4. The Selection Grid has changed and passing points are now 35 out of 100 based on the following criteria - business experience, age, education, proficiency of language and adaptability.

5. All family members are admitted under the same conditions that apply to the principal applicant. The conditions on all family members are removed as soon as they are satisfied.

6. The entrepreneur selected under the Quebec program must have net assets worth $300,000, though accumulation of wealth and definition of business experience is defined according to Quebec regulations. The applicant must stay and start a business in the province of Quebec. We have more then 250 Businesses for sale in Quebec, Canada to assist our client to obtain business immigration of Canada and settle in Canada as soon as possible.

7. The entrepreneurs must provide a residential address and telephone number within six months of their arrival in Canada and must also provide evidence of their efforts to comply with the conditions with 18 to 24 months of their arrival.

3. Self employed class:

Under section 88(1), a self-employed person is defined as:

A foreign national who has:
· Relevant experience
· Has the ability and intention to be self employed in Canada and
· Can make a significant contribution to specified activities in Canada

Relevant experience means a minimum of two years of experience in any of the following activities in the last 5 years prior to making an immigration application, namely,

a. Self employment in culture activities or in athletics
b. Participation at a world class level in cultural activities or athletics
c. Farm management experience

Interesting features of the Self employed persons program are:

a. No immigration conditions are imposed in this class
b. Self employed immigrants must have the experience, intention and ability to:

· Establish a business that will, at a minimum, create employment opportunities for themselves and which will make a significant contribution to the cultural or athletic field in Canada or

· Purchase and manage a farm in Canada.

Selection Grid for Investor and Entrepreneur class:

Minimum passing points required are 35 and points are calculated based on the following grid.
 

1. Business experience: (Maximum = 35 points)
Two years of experience       20 points

For each additional year of experience 5 points up to a maximum of 35 points for 5 years of experience.

2. Age: (Maximum = 10 points)
21-49 years of age        10 points

Deduct 2 points for each year above 49 years or under 21 years of age.

3. Education: (Maximum = 25 points)

a. Master’s and Ph.D.        25 points
b. Two or more degrees       22 points
c. One Bachelor’s degree (14 years of education)   20 points
d.  One bachelor’s degree (13 years of education)                        15 points

     e. Three years diploma or trade certificate (15 years)  22 points
f. Two years diploma or trade certificate     (14 years)   20 points
g. One year diploma or trade certificate      (13 years)                   15 points
h. One year trade diploma certificate          (12 years)                   12 points
i. High school diploma        05 points

4. Language: (Maximum = 24 points) There is no need to score any points for language.

a. English - Read, write, speak and listen - each criteria
         maximum of 4 points        16 points

            b. French - Read, write, speak and listen - each criteria
                          maximum of 2 points                   08 points

5. Adaptability: (Maximum = 6 points)

a. Business exploration trip to Canada in last 5yrs from the date of application = 6 points
b. Participation in designated Joint Federal and Provincial Business immigration initiatives = 6 points
Total points 100 and passing points are 35