We will ensure clients meet the regulatory definition of an investor and comply with the selection criteria for this business immigration category. Contact us to get legal advices about what are your best options.
Canada has an ambitious business immigration policy to attract investors to come to Canada and contribute to its economy development and employment opportunities. The Immigrant Investor Program, established by Citizenship and Immigration Canada Authority, attracts many people with capital to invest. Canadian government also extends a warm welcome to people with strong business acumen and/or competent managerial skills to come to Canada.
Who is an investor?
By virtue of Regulation R 88 (1) of the IRPA 2002; an Investor means a foreign national who:
- Has business experience
- Has a legally obtained net worth of at least CAD $ 1,600,000; and
- Indicates in writing to an officer that they intend to make or have made an investment.
Do you qualify?
Minimum net worth
The Immigrant Investment Program seeks to attract people with sufficient ‘business experience’ and capital to Canada. In addition to their business experience, investors must have a minimum net worth of $ CAD 1,600,000. Net worth is determined by proving “the fair market value of all the assets of the investor and their spouse or common-law partner minus the fair market value of all of their liabilities” (Department of Justice Canada, 2001).
It is noteworthy mentioning that the investor/applicant must provide a full paper trail/proof with respect to his assets and sources of income which must not have been obtained through illicit means or activities. (Article 16 (1) imposes an obligation to produce relevant documents and evidence). To rephrase, a full record of all the funds you will be investing must be shown.
$ 800,000 CAD refundable after five years
The Investor must be willing to pay $ CAD 800,000 to the “Receiver General for Canada”, Citizenship and Immigration Canada, as agent for approved principal 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) years 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”).
The Investor gets the $ 800,000 CAD back after five (5) years. (Redemption of Investment)– Regulation R (92), IRPA 2002 – Funds/Terms/Conditions.
Lower non-refundable amount
Alternatively, there are options whereby the Investor need not tie up $ 800,000 CAD over five (5) years, but can pay a lower amount upfront that will not be refunded after five years. This can be done through availing the services of a government approved facilitator / institution. Financing arrangements vary. It is important to mention that unlike other categories, under the Investor Class, the applicant is making a passive investment whereby 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.
Point based system
An Investor / applicant are required to accumulate 35 points in order to meet/comply with the definition of an Investor by virtue of the Immigration and Refugee Protection Act 2002.
How we help you?
In order to qualify as an Investor, the prospective applicant must have managerial experience and a net worth of at least C$1.6 million that was obtained legally. Various clients that approach our office are not familiar with the criteria/requirements pertaining to the Investor program. Through our legal advices, we help you answer questions such as:
- What are the Business Experience Requirements?
- What is meant by “business”?
- What is a “qualifying business”?
- What is an Immigration Canada approved facilitator?
- How to calculate the percentage of Equity?
- What is a Personal net worth statement?
Contact us to make sure you optimize your Canadian immigration investment.