Investors
In order to be eligible as an Investor under the Business class immigration, applicants must have a net worth of at least $800,000 Canadian dollars. (You may also include your spouse's assets when assessing your net worth, if applicable). The applicant will be required to make an investment of $400,000 Canadian dollars in approved projects in Canada. The provincial government use the funds for job creation and economic development. The full amount of the investment (without interest) is repaid to the investor after five years. The return of the investment is fully guaranteed by participating provinces and territories. Provinces and territories secure the investment against the loss.
Many potential Business Immigrants, though able to meet the program's net worth requirements, may have difficulty raising the liquid assets required ($400,000 CDN) in a short period of time or they do not wish to tie up their money for a period of five years while receiving no interest on the transaction. As a result, the Investor has the option to receive a loan from a financial institution in Canada for up to 70% of the investment. So, the Immigrant Investor deposits $120,000 CDN. (Approx. $75,000 US), borrows the remaining of the $280,000 CDN and nothing is paid back at the end of the term. The Investor's deposit of about $120,000 CDN. (Approx. $75,000 US) is used up by the financial bank to pay the interest charges for the value of about $280,000 CDN loan for the five year term. No monthly payments or interest is required to be paid by the Investor for the loan of about $280,000 CDN. In effect the cost of the program would be about $120,000 CDN. (Approx. $75,000 US) to the investor.
For Business applicants who wants to participate on the investor program to obtain their permanent residency in Canada, and do not wish to invest the required amount of $400,000 CDN for any reason, our company can arrange for you to obtain a loan of $280,000 CDN from a Canadian Bank or Financial Institution in Canada, so the cost of the program will be about $120,000 CDN (approx. $75,000 US) to you.
Besides the net worth requirement of $800,000 CDN, the Investors will be required to prove that they have significant business experience.
The Quebec government manages its own immigration programs providing for Independent Business applicants selection rules. In many respects, the province of Quebec has the most secured investor program, as government regulations are stricter.
"Business experience", in respect of an investor, 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, or
the management of at least five (5) full-time job equivalents per year in a 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 investor, means the fair market value of all of the assets of the investor and their spouse or common-law partner minus the fair market value of all of their liabilities.
"Qualifying business",
means a business o
ther
than a business operated primarily for the purpose of deriving investment
income such as interest, dividends or capital gains -- for which, in each of
any two years in the period beginning five years before the date of
application for a permanent resident visa and ending on the date a
determination is made in respect of the application, there is documentary
evidence of any two of the following:
that 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;
that the percentage of equity multiplied by the total annual sales is equal to or greater than CDN $500,000;
that the percentage of equity multiplied by the net income in the year is equal to or greater than CDN $50,000; and
that 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 paid employment.
"Net assets", in respect of a qualifying business or 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", means in respect of a qualifying business or 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 equity" means:
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;
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 the foreign national or their spouse or common-law partner is entitled.
Advantage of the Applicant under the Investor program:
Investors are not required to start a business in Canada as in the case of the Entrepreneur program;
Investments are fully guaranteed by provinces and territories that participate in the program;
The provinces and territories control the investment during the five year lock-in period; and
No immigration "terms and conditions" are imposed upon admission as in the case of the Entrepreneur program.
The Investor program is better suited for people who are obliged to constantly travel to and from Canada as soon as permanent residence is established and do not wish to be subjected to reporting immigration requirements as is the case with the Entrepreneur program.
