IMMIGRATE TO CANADA : INVESTORS (BUSINESS CLASS)
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.
To qualify as an Investor: CIC selects experienced business persons with a minimum net worth of 1,600,000 CAD. Immigrants in this class must make an investment of 800,000 CAD
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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.
To be eligible to apply for Permanent Residence in Canada in the Investor Category, Investors must demonstrate business experience, a minimum net worth of 1,600,000 CAD and make an investment of 800,000 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|
|(iii)||NET INCOME (CAD)||50,000||100,000||250,000|
(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 800,000 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 800,000 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
While the investment is not made until the Application for Permanent Residence has been approved, at the time the Application for Permanent Residence is submitted, you will include the Investor's Acknowledgment identifying the government approved facilitator through which the investment will be made. Once you have retained our services, Abrams & Krochak will recommend a government approved facilitator for this purpose.
Financing Of Investment
You may finance your investment in the Immigrant Investor Program through the services of the government approved facilitator with whom Abrams & Krochak will put you in touch once you have retained our services. In consideration of payment of 220,000 CAD plus or minus 8,000 CAD depending on the interest rates, an investor can secure the maximum loan from the government approved facilitator in order to complete the required 800,000 CAD investment. After the five (5) year obligatory investment period, that payment will have served to pay the interest on the loan and is not refundable.
PLEASE NOTE: On Thursday, June 28, 2012, Citizenship, Immigration and Multiculturalism Minister Jason Kenney announced that Citizenship and Immigration Canada will place a temporary pause on new Investor Applications. According to the Minister, the pause will allow Citizenship and Immigration Canada to make what it considers to be important changes to its economic immigration programs before accepting more Applications. As a result, Citizenship and Immigration Canada will temporarily stop accepting new Applications until the review is finalized (the date of which is currently unknown).