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Investor Immigration-how much is enough?
A common question clients always ask is "How much money do I need to invest in Canada?"
Investor Immigration-how much is enough?
Canada closed its Federal Immigrant Investor program. On June 19, 2014, Bill C-31 became law – archived, terminating applications still in the backlog of the federal Immigrant Investor Program and Entrepreneur Program.
If you applied for this program the government terminated your application and you are eligible for reimbursement of any application fees that you paid for the Federal Immigrant Investor Program.
So what options are now available for individuals looking to leverage their networth by investing in opportunities in Canada for the purpose of immigration. Owning a business in Canada does not make you automatically eligible for immigration however, it can be a pathway to immigraiton.
Federal or Provincial Programs
Under the Federal Immigration Programs- Start up visa has been a popular option for entrepreneurs who have an established business.
Start up Visa
This program is intended for foreign entrepreneurs seeking to obtain permanent residence in Canada. The applicant will have an innovative, scaling start-up business, approved by a designated organization such as an accelerator or incubator.
To be eligible for this program the entrepreneur must meet one of the following criteria:
- Business incubation: Cities and tech communities throughout Canada run accelerators and incubation programs, many of these are open to international entrepreneurs. A letter of support from one of the designated programs will support your application without any required capital investment.
- Angel investment: Businesses or Entrepreneurs that are able to raise $75,000 CAD from an angel investment group, depending on a certain stage of the business may be eligible.
- Venture capital fund: Businesses or Entrepreneurs that are able to raise $200,000 CAD from a venture capital fund, depending on a certain stage of the business may be eligible
Requirements
- Business proposal approved by a designated government business organization
- Letter of Support from the designated government business organization showing support and confirmation of the investment option.
- Application for entrepreneurs and their family to apply for permanent residence. Up to five candidates may have their permanent residence application supported by the same business investment.
- Processing time 12 to 31 months
- 3 years (or 1,095 days) of permanent residence in Canada within a five-year period, successful applicants can apply for citizenship.
Provincial Nominee Programs (PNP)
Canada’s immigration system has two parts, the Federal and the Provincial and you have probably heard of PNP (Provincial Nominee Programs). The provinces (states) of Canada have oversight over certain immigration programs and can select or nominate individuals that they believe will add benefits to their province. The priorities are set by the provinces based on their industries, sectors and needs.
Many of the provinces and territories still run investment or entrepreneur programs that will allow you to obtain Permanent Residency (PR) through an invite from one of the province’s Provincial Nominee Program.
How does it work?
Each province has different requirements and are subject to the priorities of the provincial government.
Quebec for example still has an option for passive investment You must have a net worth of at least $2,000,000 CAD. You must make a five-year term investment of $1,200,000 CAD, the investment must be made with IQ Immigrants Investisseurs inc.and is guaranteed by the Gouvernement du Québec. The income generated by your investment is used to subsidize two Québec business assistance programs:
- Business Assistance – Immigrant Investor Program (PIIAE) This hyperlink will open in a new window.
- Employment Integration Program for Immigrants and Visible Minorities
Other provinces have Entrepreneurial immigration streams; these programs typically have two options, one for investment into an existing business and one for a new investment.
The priority sectors and threshold for investment vary by province. British Columbia and Newfoundland for example require the individual have a netwoth of $600,000 CAD and $200,000 CAD unincumbered to invest in their business.
The requirements will vary by province, Ontario has a higher networth requirement while New Brunswick is lower at $300,000 CAD.
The province you choose for your business will be not only impacted by your networth but also the provinces priority industries. For example, an AgTech entrepreneur might prefer to choose a prairie province like Alberta or Saskatchewan. Whereas an Ocean tech company would raise a lot of eyebrows in these provinces and are clearly better suited for maritime or coastal regions.
Applicants for these provincial investor programs will be required to do a familiarization trip to Canada, and submit proof for your application.
These programs require submission of your business plan and approval from your target province. While the process might seem daunting at first, it is no more complicated than an express entry, work permit or study permit. In fact this is often a more appropriate pathway for those who are established as entrepreneurs in their home country and are at an age where their age hinders their CRS score.
Canada is a young and innovative country with a diverse and multicultural population which holds lots of opportunities for new and innovative solutions. The doors are open and many pathways exist for entrepreneurs to leverage their networth for immigration to Canada.
Everyday I walk around an think “I wish there was a __________ here” or “This would be a perfect spot for________".
For example in Newfoundland we do not have a Turkish hamam, baña or Nordic spa. We have one spa in St. John’s and then a miss-mash of sauna, steam and massage service scattered throughout the island. We have an underdeveloped personal care industry, and there is demand here among locals and tourists alike.
What a great opportunity if you have experience owning or operating a hotel or spa in your home country. Don't forget with many of the investor programs immigration programs you can bring up to five people related to the business (and their accompanying families) on one application.
This is just one example but there are infinite opportunities all you need is the dream.
