Canadian Advantage
Skilled Worker
Business Class
Family Class
Immigration Assessment
 
 
   
       


Canada is rated as one of the top five places to do business over the next five years. It is also predicted to have the highest economic growth of all G7 countries this year, more than Japan, Germany and the United Kingdom. As a member of NAFTA, there is access to the world's richest economy - the United States.

The Government of Canada welcomes and encourages international business people to invest their entrepreneurial expertise, technical skills and investment capital in Canada's economy. The objective of the Business Immigration Program is primarily to promote, encourage and facilitate the immigration of experienced businesspersons from abroad. This class of immigrant makes a positive contribution to Canada's economic development by applying their capital and knowledge to Canadian business ventures, which in turn creates jobs for Canadians and permanent residents. As such, Business class immigration has been very successful and the Canadian government hopes to attract 15,700 - 16,700 business immigrants in 2002.



The Business Class Immigrant

You may be interested in immigrating to Canada as an entrepreneur, as a self-employed person or as an investor. Each of these categories serves different ends and each has different criteria that must be met.



An entrepreneur is an immigrant who has business experience and the intention and ability to own and actively manage a business in Canada. The qualifying Canadian business must create or maintain employment opportunities for one or more Canadian citizens or permanent residents other than the entrepreneur and his or her dependents. Entrepreneurs must have a minimum net worth of CDN $300,000 and must meet these requirements within three years of becoming a permanent resident.



The "Self-Employed" class provides an avenue for applicants who are likely to be successful in Canada as artists, singers, musicians, actors, athletes or farmers. The person must have the intention and ability to establish a business in Canada that will create an employment opportunity for himself or herself and must make a significant contribution to cultural activities, athletics or through purchasing and managing a farm. Although conditions are not imposed the self-employed persons must have enough money to support himself/herself and his/her family after arriving in Canada.



Investors are defined in the Immigration Act as persons who have been employed as business managers or have managed a qualifying business and have control of a percentage of equity in that business for at least two years within five years before the date of the application. They must have a net worth of at least CDN$800,000 and must invest capital of CDN$400,000 (approximately US$275,000) with the Federal Government, which repays the money without interest in five years. The investment funds are fully guaranteed by the Federal Government, which allocates the investment funds to the provinces of Canada, except Quebec, based on a funding formula. This investment can be financed by various government approved and recognized banks and credit unions which are members of the Canada Deposit Insurance Corporation.

The province of Quebec has its own immigrant investor program, which it aggressively promotes. Immigrants must have a net worth of CDN$800,000 and invest a minimum of CDN$400,000 but are allowed to borrow a large portion of the capital, and are paid interest on their investment.

The advantage of immigrating to Canada under the Investor program is that, unlike with entrepreneurs, there are no conditions attached to the permanent residence visa once issued. Permanent Residence visas issued to Entrepreneurs have a three year condition attached so as to ensure that the entrepreneur establishes a business in Canada and complies with all of the requirements of the program within three years of landing in Canada. In the event that an entrepreneur does not satisfy all of the requirements of the program he and his family may lose their permanent residence in Canada status and will be required to leave Canada.

Further, investors are not required to take an active role in the business enterprise where their capital is invested. This, however, does not impede the investor from going into business in Canada after they have landed in Canada as permanent residents;provided the investor has sufficient capital with which to do so.

How the Federal Investor Program compares to the Quebec Investor Program:

WITH RESPECT TO THE QUEBEC IMMIGRANT INVESTOR PROGRAM (QIIP):

Investors who apply under this program must be destined to the province of Quebec. The investor must file an application for a Quebec Selection Certificate with one of the six Quebec government offices located outside of Canada. Once the investor has been issued a Quebec Selection Certificate he is required to submit an application for permanent residence in Canada with the Federal government.

Investors under the QIIP must:


  • have a net worth of at least CDN$800,00 acquired through lawful economic activities

  • have at least three years of management experience in a lawful and profitable

  • undertake to invest CAD$400,000 for five years by signing an agreement with a financial intermediary: a stock broker recognized by the Commission des valeurs mobilières du Québec or a trust company. This investment will be used to fund a program to assist small and medium-sized businesses in Québec
An example of how financing through one of Quebec's several brokerage firms or banks might work is as follows:

- The investor makes an initial investment of approximately CAD$96,000 - CAD$100,000 and obtains a bank loan of CAD$300,00 to CAD$304,000 which is secured by the brokerage firm. The initial investment of CAD$96,000 - CAD$100,000 covers interest on the bank loan and other financing charges. No balance is refunded after the 5 year term.