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| Entrepreneurial Class Immigrants |
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Prepared
by Peter Wong, Q.C.
The content of this article is intended to be informational only. We
caution you against using or relying upon any information contained
in this article without first seeking legal advice regarding your
particular matter. All matters arising from the use of our website,
including this article, shall be governed by Alberta law and shall
be within the exclusive jurisdiction of the courts of Alberta
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| (Updated as of January
2005) |
Many of the same
definitions and principals as described above are applicable to
entrepreneurial business class immigrants. An entrepreneurial class
immigrant must establish a business within 3 years of becoming a
permanent resident which meets the definition of a qualifying
Canadian business (defined below). There are 2 types of
entrepreneurs, those defined by the Federal Government and those
defined by the Provinces, if the province has entered into a
specific agreement with the Federal Government.
A Federal Entrepreneurial immigrant is defined as a foreign national
who has:
a) business experience
b) a legally obtained net worth of at least $300,000 Cdn and
c) has indicated in writing that they will comply with the
requirements set out in the Immigration Regulations to open a
qualifying Canadian business within 3 years of becoming a permanent
resident. (Regulation 98(1) to (5))
In order for an entrepreneur to be considered to have business
experience, he must have a minimum of 2 years of experience in
respect of :
i) management of a qualifying business and the control of a
percentage of equity of that business during the 5 year period
before the date of the application and ending on the date a
determination is made in respect of the application; or
ii) management of at least 5 full time employees in the same time
period as described above. (Regulation 88(1).
A percentage of equity as used in the definition of experience,
means, in the case of a sole proprietorship 100% ownership
controlled by the applicant or the spouse or common-law partner of
the applicant. (Regulation 88(1)). In the case of a corporation it
means the controlling interest in the voting shares of the issued
capital of the corporation and in the case of a joint venture or
partnership it means the controlling percentage of the profit or
loss of the entity.
In order for a business to be qualifying so that the applicant can
be considered to have business experience by managing and
controlling the percentage of equity, that business must not be a
business operated primarily for the purpose of deriving investment
income such as interest, dividends or capital gains. Further, it
must meet at least 2 of the following 4 minimum criteria:
1) Employment of 2 full time job equivalents
2) Total annual sales is greater than of $500,000 Cdn
3) Net income is greater than $50,000 Cdn
4) Net assets at the end of a year is greater than $125,000 Cdn.
(If the applicant owns less than 100% than the requirements are
multiplied by the percentage of equity that the applicant owns in
the company. For example if the applicant owns 50% of the business
than the minimum requirements would be doubled.)
Once the applicant becomes selected as an entrepreneurial class
immigrant and has received permanent residence, than the immigrant
must meet the condition that is part of the permanent residence
visa. This condition is also applicable to all dependents who
immigrated with the principal applicant and if the condition is not
met than the immigrants could be removed from Canada.
The applicant must establish a qualifying Canadian business and
provide evidence of that establishment within 3 years from the date
of landing.
A qualifying Canadian business is a business operated in Canada by
an entrepreneur, other than a business operated primarily for the
purpose of deriving investment income, such as interest, dividends
or capital gains which meet 2 of the following 4 criteria:
1) Employment of 2 full time job equivalents
2) Total annual sales is greater than of $250,000 Cdn
3) Net income is greater than $25,000 Cdn
4) Net assets at the end of a year is greater than $125,000 Cdn.
(If the applicant owns less than 100% than the requirements are
multiplied by the percentage of equity that the applicant owns in
the company. For example if the applicant owns 50% of the business
than the minimum requirements would be doubled)
The applicant must meet the following additional requirements in
respect of the qualifying Canadian business:
a) the applicant must have ownership of at least 33 1/3 % of the
business
b) the applicant must provide active and on-going management of the
business
c) the applicant must create at least one full time job for a
Canadian citizen or permanent resident other than the applicant or
his or her dependants (Regulation 98(1)).
The entrepreneurial class is best suited for those applicants who
have operated businesses in the past either as owners or senior
managers and who are able and willing to do so in Canada after their
immigration to Canada. There are reporting provisions which require
the entrepreneur to report on a regular basis (within 6 months of
obtaining permanent residence and between 18 and 24 months of
obtaining permanent residence) to an immigration officer their
efforts at establishing themselves in Canada and their Canadian
qualifying business.
If you would like assistance with making an application for
permanent residence please feel free to contact us by email at:
immlaw@caronpartners.com |
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