Canadian Immigration & Investment Consulting Corporation How to Immigrate to Canada as a Business Investor or Start Up Visa for New Business First Canadian Place 100 King Street W., Suite 5700 Toronto, Ontario M5X 1C7 Telephone Toronto Office: 416-913-0135 Fax Toronto Office: 416-915-3132 Bahrain Financial Harbour Telephone: 973 1619 8632/973 3894 1768 Dubai Emirates Towers Telephone: 800 032 0133 Email: info@ciicc.ca Skype: CIICC Canada
Table of Contents 1. How to Immigrate to Canada as a Business Investor or Start Up.1 2. Canada Business and Investment Immigration Overview.2 Start-Up Visa Program Self Employed Programs The Federal Self Employed Class The Quebec Self Employed Program Quebec Immigrant Investor Program Quebec Entrepreneur Program Provincial Entrepreneur Programs British Columbia Saskatchewan Manitoba Ontario New Brunswick Prince Edward Island North West Territories Yukon 3. Quebec-Business Investors & Entrepreneurs..13 4. Family Sponsorship 17
1. How to Immigrate to Canada as an Business Investor or Start Up Find out if you are eligible to apply. Do you want to immigrate to Canada either as an Investor or by starting your own business with a Start Up Visa. At Canadian Immigration & Investment Consulting (CIICC) we specialize in assisting business investors and entrepreneurs to successfully immigrate to Canada and in a relatively short span of time. At our Headquarters in Toronto, Canada we have a dedicated inhouse team including highly experienced Immigration Lawyers to Financial experts drawn from the top accounting houses in Toronto. Our strength and experience enables us to process Applicants successfully and quickly. Answer a few questions to find out what immigration programs you can apply for. Each immigration program has a different application and eligibility requirements. Please take a few minutes to complete our Assessment Form found on our website: www.ciicc.ca Nationality Age Language ability Family members Education Qualifications Work experience Income and/or net worth Other Experience to support your application Based on your answers, this will determine your eligibility to apply to immigrate to Canada as an Investor or Starting a Business. If you are eligible, we will identify the most appropriate program for you to apply and also provide you with complete details of the required documentation to accompany and strengthen your application. We will also inform you on the entire process, timeline and Government of Canada Fees and CIICC s fees for processing. www.ciicc.ca 1
2. Canada Business and Investment Immigration Overview Business immigration to Canada comprises of the Quebec Investor Program, Quebec Entrepreneur Program, several Provincial Entrepreneur programs, the Federal and Quebec Self- Employed programs, and the Federal Start-Up Visa program. While the various entrepreneur and self-employed programs are aimed at individuals with a mid-range personal net worth who intend to establish and operate a business in Canada, the investor program is ideal for mid to high net worth individuals who wish to make a passive investment with no obligation to establish a business. Start-Up Visa Program The Start-Up Visa Program was introduced by Ministerial instruction in April 2013 as a pilot project. The Start-Up Visa program grants Canadian permanent residence to qualified immigrant entrepreneurs. The program aims to recruit innovative entrepreneurs to Canada and link them with the Canadian private sector businesses, (angel investor groups, venture capital funds or business incubators) and facilitate the establishment of their start-up business in Canada. Successful candidates will receive a letter of support from a government designated entity (angel investor group, venture capital fund or business incubator). The government designated entity is primarily responsible to determine the viability of the applicant s intended business and present an approved project along with a Commitment Certificate to immigration authorities. Applications are assessed under a pass fail basis. At CIICC, we work with several of the designation Angel Investor and Venture Capital groups in addition to Business Incubators. We will assist you in preparing the required Business Plan and 2
Feasibility Study for your proposed business venture and to accompany your Application. For those applicants with strong applications and the requisite supporting documentation, CIICC is able to secure the required Letter of Support/ Commitment Certificate. Applicants to Canada s Start-Up Visa Program must meet four basic eligibility requirements: 1. Obtain a commitment from a designated entity in the form of a Commitment Certificate or Letter of Support; 2. Have sufficient unencumbered, available and transferable settlement funds; 3. Have completed at least one year of post-secondary education; 4. Demonstrate sufficient proficiency in English or French through standardized testing (Canadian Language Benchmark level 5) ; The required commitment from a designated entity must meet the following criteria: A designated angel investor group must confirm that it is investing at least $75,000 CAD into the qualifying business, or two or more commitments from designated angel investor groups totaling $75,000 CAD; OR A designated venture capital fund must confirm that it is investing at least $200,000 CAD into the qualifying business or two or more commitments from designated venture capital funds totaling $200,000 CAD; OR A designated business incubator must confirm that it is accepting the applicant into its business incubator Program and that the Applicant has the ability to self-fund In order to qualify, the intended business must be incorporated and carrying on business in Canada at the time the commitment is made and: The applicant owns a least 10% of the voting rights in the corporation; AND No other person holds 50% or more of the total amount of voting rights in the corporation. Up to five applicants may have their application for permanent residence supported by the same business investment. However, certain applicants may be designated essential to the intended business. If any of the essential applicants withdraw their application or are refused for other reasons, all other applicants under the same business investment will see their applications terminated. 3
Applicants who have secured a Commitment Certificate from a designated entity, and who wish to begin working in the business during the processing of their permanent residence application may apply for a short term work permit on the basis of their Commitment Certificate if the designated entity supports such a request. Canada s Start-Up Visa program does not apply to applicants who intend to reside in the province of Quebec. 4
Self Employed Programs The Federal Self Employed Class The Self Employed Class is geared towards applicants who have relevant self-employment experience as well as the intention and the ability to create their own employment and make a significant contribution to the cultural, artistic or athletic life of Canada, or to create their own employment by purchasing and managing a farm in Canada. A successful applicant is one who has at least two years of experience in the period beginning five years before the date of the application and ending on the day a determination is made on the application, in self-employment in cultural activities or in athletics; participation at a worldclass level in cultural activities or athletics; or farm management experience. To qualify, the applicant must demonstrate a sufficient financial net worth which, although somewhat less than an entrepreneur and not specified in the regulations, should enable the applicant to be self-employed in Canada and make a significant contribution to specified economic activities in Canada and to meet the initial settlement requirements for the applicant and accompanying dependants. The Quebec Self Employed Program Self-employed applicants are primarily differentiated from skilled worker applicants in that to qualify the self-employed must have two years of applicable experience, possess a personal net worth of $100,000 CAD, have sufficient settlement funding and will come to Quebec to create employment for the applicant by practicing a profession defined in the National Occupational Classification. Prospective applicants must also meet applicable occupational entry or licensing requirements. 5
Quebec Immigrant Investor Program Canada s constitutional laws feature a dual immigration system. Historically, both the Federal government and that of the province of Quebec operated their own passive business investment programs. Following the winding up of the Federal program in June 2014, the Quebec Immigrant Investor Program remains the sole option for business immigrants with a high net worth wishing to secure permanent residence on the basis of a passive investment. The primary requirements to qualify under the Quebec Investor program are Have a legally acquired personal net worth of $1.0 million CAD; Possess two years of suitable management or business experience within the five years preceding the application; Commit to making an investment of $500,000 CAD into a passive government guaranteed investment for a period of five years bearing no interest; Intend to settle in the province of Quebec. The Quebec Immigrant Investor Program is passive in nature, meaning that individuals selected under its auspices are not required to establish or actively manage a business in the province. Rather, the program requires an investment of $500,000 CAD into a prescribed (government guaranteed) investment. Applicants must have the intention of settling in the French speaking province of Quebec. Successful applicants are issued a selection certificate from Quebec for Canada immigration, which allows them to obtain Canadian permanent residence following health and criminality examinations by Federal immigration authorities. Legally Acquired Net Worth In order to meet the minimum net worth requirement of $1.0 million CAD, applicants must demonstrate the net value of their current assets, as well as their history of acquisition of funds over the course of their careers through narrative statements and supporting documentation. Net worth is established through bank statements, investor booklets, real estate evaluations, audited financial statements and other pertinent and up to date documentation. Candidates are required to declare all of their personal assets and liabilities; however they are not required to produce evidence of assets beyond $1.0 million CAD. 6
Applicants must also demonstrate that their net worth was acquired legally. This takes into account the individual s past employment income, businesses, local market conditions, inheritances and donations. While it is often difficult to produce detailed documentation of the early stages of an applicant s career, clear supporting documents will facilitate the application process. Suitable Management Experience The intention of the program is to attract business acumen and investment to Quebec. A qualified applicant has typically owned or managed an active trade or business, which may include professional practices, rather than merely managing investment activities. In this context gray areas include professionals that don t manage the business, passive real estate investors and investment managers. For example developing real estate may qualify whereas merely owning real estate may not qualify. Suitable management experience is defined in the applicable regulations as: The assuming, for at least 2 years in the 5 years preceding the application for a selection certificate, of duties related to the planning, management and control of financial resources and of human or material resources under the investor s authority; the experience does not include the experience acquired in the context of an apprenticeship, training or specialization process attested to by a diploma. Investment and Financing Successful applicants are required to make their investment with Investissement Québec for a period of five years, at the end of which the capital is returned without interest. The five year period begins upon issuance of the selection certificate, before the applicant has even landed in Canada. Proceeds from the investment are used to fund various business and social programs within the province of Quebec. The Quebec Investor program permits applicants to finance the bulk of their investment through designated securities brokerage firms and investment banks. Typically the financing schemes require a down payment of approximately $180,000. The bank loans the applicant the balance of $320,000. The applicant deposits the sum of $500,000 with Investissement Québec. The down payment is not refunded at the end of the five year period. The bank takes fees and interest from the down payment, the immigration agent takes their commissions from the down payment. The net cost to the investor is the down payment. 7
Quebec Entrepreneur Program A Quebec entrepreneur is defined as a foreign national with at least two years (within the five years preceding the submission of the application) of management and ownership experience in a lawful and profitable agricultural, industrial or commercial enterprise who creates, acquires or participates in the active management of a lawful and profitable agricultural, industrial or commercial enterprise that will immediately employ at least one full-time resident of Quebec (30 hours per week), other than the foreign national and his accompanying dependants (R21 (b)). The entrepreneur must control at least 25% of the shares of the new enterprise which must have a value of at least $100,000 CAD. To qualify, an applicant must possess a personal net worth of at least $250,000 CAD acquired legally, and have sufficient settlement funding to cover the cost of the applicant s first three months of living expenses in Quebec. There are two important distinctions from the Investors Class. First, Entrepreneur Class applicant must establish and become active in the management of a qualifying Canadian business in Quebec. Approved applicants are therefore admitted to Canada under a conditional visa and must report regularly to immigration authorities. Applicants who do not fulfill their qualifying Canadian business conditions may be subjected to removal hearings which could lead to deportation of the applicant and family members. Second, applicants without qualifying business ownership experience cannot qualify. Senior managerial experience without ownership is ineligible. Quebec Entrepreneur applicants must successfully defend a business plan during a selection interview which presented in general terms, outlines the feasibility and relevancy of the project 8
to Quebec. The selection interview is typically preceded by a preliminary market visit to the province of Quebec by the applicant. Once approved, the application proceeds to Federal security and medical verifications followed by visa issuance with mandatory terms and conditions, within an overall processing delay which can vary between 18-30 months. In summary, to qualify, a successful Quebec Entrepreneur Class applicant will: Demonstrate a legally acquired personal net worth of at least $300,000 CAD; Demonstrate significant ownership and day to day senior management of a successful business for 2 years in the previous 5 years; Commit to investing a minimum of $100,000 CAD into establishing, purchasing or expanding a business or entering into a successful partnership, in which they will retain at least 25% ownership interest; Commit to creating at least one full time job for a Canadian citizen or permanent resident in Quebec; Provincial Entrepreneur Programs Mid-range net worth individuals with suitable entrepreneurial experience may be eligible to apply under the one of many Provincial Entrepreneur programs. Currently, entrepreneur programs are administered by individual provinces and follow a two-step process to permanent residence. Applicants are first selected or nominated by a province if they meet program requirements. Based on that selection or nomination, they may then apply to Citizenship and Immigration Canada for permanent residence. There are a number of provinces which manage their own business immigration programs which require active participation in the management of a business based on a specified 9
investment and job creation. The programs vary in the requirements to qualify but generally refer to a minimum net worth in the area of $250,000 with relevant management experience. Some of the programs require a good will deposit which is refundable once the business has been established. Under provincial nominee programs, applicants first apply to be nominated by a province, and on the basis of that nomination may obtain permanent residence following Federal health and criminality checks. British Columbia s Provincial Nominee Program has three streams aimed at entrepreneurs with distinct requirements. Net worth requirements range from $400,000 to $800,000 CAD and investment requirements from $200,000 to $500,000 CAD. Unlike other entrepreneur immigration programs, British Columbia first supports applicants in the issuance of a Work Permit. The province will only nominate an applicant for permanent residence once they have successfully established and operated the intended business while in Canada as a work permit holder. The Saskatchewan Immigrant Nominee Program s Entrepreneur stream is a three-stage process: Expression of interest Invitation to submit application Nomination The Expression of interest must meet the following minimum entry requirements: Minimum net worth of $500,000 legally acquired. Minimum of three years of entrepreneurial or relevant management experience. Investment of at least $300,000 in Regina or Saskatoon, or $200,000 is any other Saskatchewan area. Candidates enter a pool where they receive a score. The top scoring candidates are invited to submit an application. Applications must include: Business Establishment Plan confirming figures in expression of interest, and including at least one third ownership of a company in Saskatchewan, unless investment is C$1 million or higher. Commitment to be active in day-to-day management of business. Creation of two or more jobs for Canadian citizens or permanent residents if the business is located in Regina or Saskatoon. 10
The Manitoba Provincial Nominee Program for Business nominates applicants who have a minimum net worth of $250,000 CAD, three years of business ownership and management experience or senior managerial experience and who score a sufficient number of points according to an adaptability matrix which takes into account such factors as age, business experience, financial resources, language abilities, and ties to the province of Manitoba. Successful applicants must make an investment into a Manitoba business of at least $150,000 CAD and provide active management. Applicants must first make an Expression of Interest submission to the province wherein they provide their profile without supporting documentation. The top Expression of Interest profiles will be invited to make a full application to the business program. Successful applicants will be required to make a $100,000 CAD deposit with the province upon nomination, which is returned if they meet certain conditions, which include making the required investment into the province and demonstrating active management of the business. Ontario s provincial nominee program, known as Opportunities Ontario, includes options for foreign businesses making large-scale investments into the province and who wish to obtain permanent residence for up to 25 key skilled employees. The minimum investment required is of C$1,000,000 and must be approved by an Ontario ministry. It must also lead to the creation of at least five full time jobs for Ontario residents. The government of Ontario has authority to nominate certain applicants for Canadian permanent residence under the Ontario Immigrant Nominee Program (OINP). Individuals with a nomination certificate issued by the province may apply for Canadian permanent residence. Ontario Business Immigration program has two immigration programs directed to applicants with a successful business background. The programs are: 1. The Ontario Corporate Stream (OCS) 2. The Ontario Entrepreneur Stream (OES) The New Brunswick Provincial Nominee Program for Business primary requirements are that applicants demonstrate a legally acquired personal net worth of at least $300,000 CAD, have at least three years of relevant business management experience within the five years preceding the application and intend to make an eligible investment of $125,000 CAD and provide active management of a New Brunswick business. Applicants are also evaluated on the basis of their age, language abilities, education, and ties to the province. Successful applicants are required to make a deposit of $75,000 CAD with the province upon nomination by the province, which is returned upon meeting established criteria regarding the intended business investment. The Prince Edward Island Provincial Nominee Program for Business requires that applicants demonstrate a legitimately acquired personal net worth of at least $500,000 CAD, have 11
relevant business experience, and make an active investment into a local business of at least $150,000 CAD. Age, language and educational requirements are also applicable. Successful candidates will be required to make a deposit with the province of $200,000 CAD upon nomination which will be returned in installments as various conditions are met. The North West Territories Entrepreneur Program requires applicants to demonstrate a minimum personal net worth of $250,000 CAD, have relevant managerial experience, and make an active investment of at least $150,000 CAD into a local business. As in other entrepreneur programs, a refundable good faith deposit of $75,000 CAD is required from successful applicants. Yukon s Business Nominee program first nominates successful applicants for a two year work permit. During the validity period of the work permit, applicants are required to establish their intended business in the Yukon. Only then are they nominated for permanent residence. Successfully applicants must demonstrate a legally acquired personal net worth of $250,000 CAD, have relevant business management experience, and make an active investment of at least $150,000 into a local business. Applicants are also evaluated based on factors such as age, language abilities, education, and prior visits to the Yukon. 12
4. Quebec-Business Investors & Entrepreneurs The Quebec Immigrant Investor Program (QIIP), a Canadian immigration program that allows international investors to obtain Canadian permanent residence by investing CAD $500,000 risk-free, will reopen in less than two months. The QIIP is Canada s only passive investor immigration program, and is one of the most popular investor immigration programs globally, offering a number of advantages over investor immigration programs in other jurisdictions. For example, there is no probationary or conditional stage, and a successful application leads to a Canadian permanent resident visa. This marks the QIIP as quite different to the EB-5 program in the United States, where applicants must prove that they created 10 jobs or more within two years. The QIIP has no such provision. Second, the investment of CAD $500,000 is submitted through an approved financial intermediary. This investment can be paid by the applicant or arranged through a financial intermediary financing option. The investment is guaranteed by a government of Quebec entity and returned in full after five years. Third, immediate members of the candidate s family (spouse or common-law partner and dependent children under the age of 19) may be included in the application, and these family members also obtain Canadian permanent residence. Successful applicants and their families may enjoy the benefits of permanent resident status, including universal health care, free public education, and access to world-class universities. Finally, the QIIP is a route not just to Canadian permanent resident status, but also to Canadian citizenship and the right to a Canadian passport. Currently, Canada s citizenship naturalization criteria require only four years of residency in Canada within six years, and the current federal government aims to reduce this requirement to three years of residency out of five. Requirements Minimum net worth Applicants must have acquired a minimum of C$1.0 million in net worth by legitimate means, alone or with a spouse or partner. Assets such as property, bank accounts, pension funds, stocks, and shares may be included. 13
Investment Applicants must intend to settle in Quebec and sign an investment agreement agreeing to invest CAD $500,000 with an approved financial intermediary. Applicants must sign an investment agreement with one of the financial intermediaries a broker or trust company authorized to participate in the program. The investment can be financed by a financial intermediary. Management experience Applicants must have acquired a minimum of two years management experience in the past five years. The experience is not limited to commercial activities, but can also be an international agency, department or government agency. Preparation is key The upcoming intake period for applications runs from May 29, 2017 to February 23, 2018, and up to 1,900 applications may be accepted for processing. Of these, a maximum of 1,330 applications may be accepted from foreign nationals of the People s Republic of China, including the administrative regions of Hong Kong and Macao. Based on previous application cycles, it seems likely that the QIIP intake cap may be reached before the scheduled end date. Candidates with an advanced intermediate level in French are not subject to the intake cap, and may submit an application at any time. Moreover, their applications are given priority processing. Do you wish to immigrate to Québec and do business there? A typical immigration procedure, based on the actual experience of numerous immigrants, is described below. Take the time to read it carefully and learn about the steps you can take to make your immigration a success. If you have not yet decided to immigrate to Québec, you will find a wealth of information to help you make an informed decision. If you have already made up your mind, take advantage of this opportunity to save both time and energy. You will find plenty of tips to make your immigration and integration easier, but also to assist you in investing in Quebec or establishing or buying a business there. 14
IMPORTANT NOTICES Repatriation of selection activities of the Québec Immigration Office in Hong Kong Retaining the paid services of an individual (mandatory ) Notice on Internet fraud The 7-step procedure: Here is an overview of the steps you will have to take to achieve your immigration and business goals. You can carry them out in any order you see fit. 1. Finding out about Québec and the business environment Discover Québec and its diversified, modern and dynamic economy. It will be useful for you to know about its most promising sectors, competitive operating costs, corporate taxation system, quality labor force and open and stimulating business environment. Québec offers you a wealth of potential! 2. Applying as a business immigrant You re planning to immigrate to Québec and want to file an official application form. Please note that no priority or special consideration is given to the file of an applicant who uses the services of an immigration intermediary. To directly submit your application for the immigration program of your choice, find out about the appropriate procedure. 3. Making an exploratory trip to Québec The experience of many business immigrants has shown that it is a preferable to devote one or two years to carefully preparing your immigration plan. This is the ideal time to make one or more exploratory trips to Québec. 4. Developing your business project A number of resources are available to help you develop, evaluate and put down on paper your business project. Don t hesitate to use them. Preparing a business project is among the conditions for your business to succeed in Québec. 5. Preparing for your life in Québec Take advantage of the time it will take to receive your permanent resident visa to prepare yourself. This will make you and your family s integration that much easier. 6. Going into business or acquiring a business You will have to complete a number of formalities to establish your business in Québec. Do not hesitate to use the assistance available to guide you in your business Endeavour in Québec. 15
7. Getting settled and facilitating your family's integration Find out about the first steps you should take as soon as you arrive and the services offered by the government and its partner organizations to facilitate your integration and that of your family. 16
6. Family sponsorship Your relatives can live, study and work in Canada if they become Permanent Residents of Canada. You can sponsor certain relatives to come to Canada if you re at least 18 years old and older. Canadian Citizen or Permanent Resident of Canada Also, approval to any of the Federal or Provincial Business Investor Visa programs or the Federal Start Up Visa Program will entitle you to automatically be eligible to sponsor you immediate family members including spouse and children. The process is to complete and submit a Family Sponsorship Application and of which will permit your family members to live in Canada and be eligible for Permanent Resident status. At CIICC, we are very expertise at submitting Family Sponsorship Applications in conjunction with Business Visas and gaining approval in order that families may travel together to Canada. 17