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Prospective applicants are not always aware of the importance of meeting the definition of  “entrepreneur” and the impact that it may have on non-compliance. Please contact us for guidance.

  1. Who is an entrepreneur?
  2. Do you qualify?

The Entrepreneur Class seeks to attract people with ‘business experience’ willing to establish and actively manage a business in Canada that will contribute to the economy and create employment for a Canadian or Permanent Resident.

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Important

There is currently a Temporary pause on this program but changes to the Entrepreneur Program are expected within the upcoming months. Please create a free account for updates about the program.
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Who is an entrepreneur?

Under Regulation R (88) of the IRPA 2002; the Entrepreneur must comply with the following criteria listed hereunder in order to conform to the Regulatory definition under the Act.

An Entrepreneur means a foreign national who:

  1. Has business experience
  2. Has a legally obtained minimum net worth of $ 300,000 CAD; and
  3. Provides a written statement to an officer that they intend and will be able to meet the conditions referred to in subsection 98 (1) to (5) (Citizenship and immigration Canada, 2008).

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Don’t forget

Prospective applicants are not always aware of the importance of meeting the definition of “entrepreneur” and the impact that it may have on non-compliance. Our extensive experience and genuine in-depth knowledge of Immigration law and procedures will ensure that we provide our clients with up to date tailored advice. Talk to an agent now.
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Do you qualify?

A prospective applicant must comply with the aforementioned Regulatory definition in order to qualify under the Entrepreneur category.

1. Business Experience

  • Managed a “Qualifying Business” within the meaning of the Act (Regulation 88); the business cannot be a business that is operated primarily for the purpose of deriving investment income such as interest, dividends or capital gains.
  • Controlled a sufficient percentage of equity (sole proprietorship 100% of the equity; Corporation or Partnership or Joint venture) of the qualifying business for at least two out of five years, beginning five years before the date of application for a permanent resident visa.

A qualifying Business under the Act is a business that can show evidence of any two of the following activities in the table below (akanada.com, 2012):-

Attribute 100% Ownership 50% ownership 20% onwership
Full-time employees 2 4 10
Sales (CAD) $500,000 $1,000,000 $2,500,000
Net income (CAD) $50,000 $100,000 $250,000
Equity (CAD) $120,000 $250,000 $625,000

2. Net Worth

By virtue of Regulation R (88) of the IRPA 2002, net worth is defined as the fair market value of all of the assets of the entrepreneur and their spouse or common-law partner minus the fair market value of all of their liabilities. (Assets may include inheritances).

Within the meaning of the Act, the foreign national must possess a personal minimum net worth of CAD $ 300,000 legally obtained (income must be derived from a lawful source).

3. Compliance with the conditions referred to in subsection 98 (1) to (5)

Written statement

Provide a written statement – pertaining to compliance with the conditions referred to in subsection 98 (1) to (5). (Entrepreneurial terms and conditions). An entrepreneur who become a permanent resident must control at least 1/3 of a qualifying Canadian Business; there must be evidence of any two of the following (in any year within three  years of the entrepreneur becoming a permanent resident):

  1. 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;
  2. The percentage of equity multiplied by the total annual sales is equal to or greater than  $ 250,000 CAD;
  3. The percentage of equity multiplied by the net income in the year is equal to or greater than CAD 25,000; and
  4. The percentage of equity multiplied by the net assets at the end of the year is equal to or greater than $ 125,000 CAD.

Create at least one incremental full-time job

The Entrepreneur must provide active and ongoing management of the qualifying Canadian business that will create at least one “incremental” full-time job equivalent (1,950 hours of paid employment) for a Canadian citizen or Permanent Resident, other than the Entrepreneur and their family members.

Entrepreneur must meet/ comply with these conditions for at least one year within three years after becoming a permanent resident.

Report to Citizenship and Immigration Canada

By virtue of Regulation 98 (5) the Entrepreneur must report the following to CIC:

  1. Their home/residence address and telephone number within 6 months after becoming a permanent resident.
  2. Evidence pertaining to efforts undertaken by the entrepreneur to comply with the conditions. This must be done within 1 ½ to 2years after becoming a permanent resident.

It is noteworthy mentioning that prior to issuance of the PR visa, an Entrepreneur is required to sign a statement that the applicant / entrepreneur shall be able to meet / comply with the terms / conditions of permanent residence.

Regulation 98 (6) – family members of an entrepreneur are subject to the entrepreneurial terms/ conditions that the principal applicant must meet; failure to comply with the stipulated residency requirements pertaining to the establishment of a qualifying Canadian business can result in the deportation of the Principal Applicant (Entrepreneur and Accompanying Family Members).

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Don’t forget

The permanent resident status granted to Entrepreneur is subject to terms and conditions (unlike the investor), and may be revoked if these terms and conditions are not met within a specified period.

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