Immigrating to Canada as an Entrepreneur

To qualify as an entrepreneur, you must have business experience. This means that you must have managed and controlled a percent of equity of a qualifying business. Entrepreneurs must have a legally obtained net worth of at least CDN $300,000.

When you immigrate to Canada as an entrepreneur, you must have the intention and the ability to control a percentage of equity of a qualifying Canadian business. You must provide active and ongoing management of the qualifying Canadian business. Your business must create at least one new full-time job for a Canadian citizen or permanent resident. You must meet these requirements within three years of becoming a permanent resident.

Before your immigrant visa is issued, your are required to sign a statement that you intend and will be able to meet the conditions of permanent residence.

Entrepreneur -- Regulatory Requirements

1. has business experience;
2. has a legally obtained minimum net worth; and
3. provides a written statement to an officer that they intend to and will be able to meet the conditions referred to in subsections 98(1) to (4).

Conditions

98. (1) An entrepreneur who becomes a permanent resident must meet the following conditions:

1. the entrepreneur must control a percentage of the equity of a qualifying Canadian business equal to or greater than 33 1/3 per cent;
2. the entrepreneur must provide active and ongoing management of the qualifying Canadian business; and
3. the entrepreneur must create at least one incremental full-time job equivalent for Canadian citizens or permanent residents, other than the entrepreneur and their family members.

(2) The entrepreneur must meet the conditions for a period of at least one year within the period of three years after the day on which the entrepreneur becomes a permanent resident.

(3) An entrepreneur who becomes a permanent resident must provide to an officer evidence of compliance with the conditions within the period of three years after the day on which the entrepreneur becomes a permanent resident.

(4) An entrepreneur must provide to an officer

1. not later than six months after the day on which the entrepreneur becomes a permanent resident, their residential address and telephone number; and
2. during the period beginning 18 months after and ending 24 months after the day on which the entrepreneur becomes a permanent resident, evidence of their efforts to comply with the conditions.

"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.

"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.

"Minimum net worth" means

1. in respect of an entrepreneur, CDN $300,000; and
2. in respect of an entrepreneur selected by a province, the minimum net worth required by the laws of the province.

"Qualifying Canadian business" means a business operated in Canada by an entrepreneur -- other than a business primarily for the purpose of deriving investment income, such as interest, dividends or capital gains -- for which there is in any year within the period of three years after the day the entrepreneur becomes a permanent resident documentary evidence of any two of the following:

1. 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;
2. the percentage of equity multiplied by the total annual sales is equal to or greater than CDN $250,000;
3. the percentage of equity multiplied by the net income in the year is equal to or greater than CDN $25,000; and
4. the percentage of equity multiplied by the net assets at the end of the year is equal to or greater than CDN $125,000.

"Full-time job equivalent" means 1,950 hours of paid employment.

"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", 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.

"Percentage of equity" means

1. 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;
2. 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 a foreign national or their spouse or common-law partner is entitled.

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