How to Qualify for Canadian Permanent Residence – Investor (Business Class)
Citizenship and Immigration Canada (CIC) selects business immigrants based on their ability to become economically established in Canada.
Canada has three categories of business immigration, Investors, Entrepreneurs and Self-Employed.
More information on how to qualify for Investor Business Class
To qualify as an Investor: CIC selects experienced business persons with a minimum net worth of 800,000 CAD. Immigrants in this class must make an investment of 400,000 CAD
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What's Next?
Find out if you Qualify for Canadian Permanent Residence.
| Answer a few simple questions and we will tell you if you qualify as a business immigrant |
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Introduction
The Immigrant Investor Program (also known as the Investor Category of the Business Class) seeks to attract experienced businesspersons and capital to Canada. This category is ideal for those who want to immigrate to Canada but who do not wish to be obligated to engage in any type of business/employment activity upon their arrival. The ever-increasing popularity of the Immigrant Investor Program among new immigrants to Canada is self-evident. The chart, below, which was created by Citizenship and Immigration Canada and which has been reproduced, below, with appreciation, shows a fifty-five percent (55%) increase in the number of applicants in the Immigrant Investor Program from 1999-2001.
Eligibility
To be eligible to apply for Permanent Residence in Canada in the Investor Category, Investors must demonstrate business experience, a minimum net worth of 800,000 CAD and make an investment of 400,000 CAD. An Investor's net worth need not have been created by his/her own endeavours but, rather, must have been "legally obtained" (i.e. inheritance, gift, etc.). Assets of an Investor's spouse/common-law partner/same-sex partner are also included when assessing net worth.
There are two (2) ways for an Investor to demonstrate business experience:
- management and control of a qualifying business of sufficient size;
OR
- management of a business, or a portion of a business, (without the need to own it) with at least five (5) full-time (37.5 hours per week or more) employees.
(i) Ownership Option
In the ownership option, Investors will be required to provide documentation, proving that, within any two (2) of the last five (5) years, they controlled and managed a Qualifying Business that meets any two (2) of the defined requirements/attributes for full-time (37.5 hours per week or more) employees, sales, net income and equity.
The following chart sets out the minimum requirements for a Qualifying Business at various percentages of ownership.
| 1. Ownership Option |
| ATTRIBUTE | PERCENTAGE OWNERSHIP OF BUSINESS |
| 100% | 50% | 20% |
| (i) | FULL-TIME EMPLOYEES | 2 | 4 | 10 |
| (ii) | SALES (CAD) | 500,000 | 1,000,000 | 2,500,000 |
| (iii) | NET INCOME (CAD) | 50,000 | 100,000 | 250,000 |
| (iv) | EQUITY (CAD) | 125,000 | 250,000 | 625,000 |
(ii) Management Option
As an alternative to actual ownership, Investors may qualify by providing documentary proof that, over any two (2) of the last five (5) years, they had managed at least five (5) full-time (37.5 hours per week or more) employees in a business.
Mechanics Of Investment
Prior to Canada immigration visa issuance, Investors must pay 400,000 CAD to the Receiver General for Canada. Citizenship and Immigration Canada, as agent for approved provincial government-administered venture capital funds, will prepare and deliver to the Investor a debt obligation in the amount of 400,000 CAD, repayable (without interest) thirty (30) days after the expiration of the five (5) year allocation period. The investment is not refundable after visa issuance (i.e. it is "locked in" for the five (5) year period once a Canadian immigrant visa has been issued).
Citizenship and Immigration Canada will allocate immigrant investment to approved provincial funds according to an allocation formula.
Citizenship and Immigration Canada will subsequently distribute the money among the funds. After five (5) years, the funds will repay Citizenship and Immigration Canada, for subsequent repayment to Investors.
Timing Of Investment
Abrams & Krochak does not recommend that you make your investment until such time as you know whether your Application for Permanent Residence in Canada has been approved-in-principle. There is no procedural/strategic advantage to investing prior to being approved and, as such, there is little sense to divesting yourself of such a considerable sum of money for a period of approximately one (1) year or so while your Application is being processed.
Financing Of Investment
You may finance your investment in the Immigrant Investor Program. Measures are in place at Citizenship and Immigration Canada Headquarters to support the process; but, it is your responsibility to make the appropriate arrangements with the financial institution of your choice.
In the past, Abrams & Krochak's clients have had satisfactory dealings with various financial institutions here in Canada whose particulars will be provided to you by the firm if and when you become a client.
Generally speaking, with a minimum deposit of 135,000 CAD, an investor can secure the maximum loan from these financial institutions in order to complete the required 400,000 CAD investment.
After the five (5) year obligatory investment period, the initial capital deposit will have served to pay the interest on the loan. The cost of this financing option, therefore, represents an amount of 135,000 CAD (as of July 2001). This offer may vary according to Canadian interest rate fluctuations and the financial institution concerned.
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