The Business Impact Category provides the opportunity for foreign nationals to be nominated by Prince Edward Island to become permanent residents of Canada providing they invest in and actively manage a business in Prince Edward Island. The PEI Business Impact Category is looking for interested businesspersons who can demonstrate vision, leadership and determination. Together with a growing population and economy, a choice to invest in and operate a business in Prince Edward Island will serve not only the interests of the business person themselves but the entire province at large.
There are three streams from which an applicant can choose:
1) BUSINESS IMPACT – 100% OWNERSHIP STREAM
Prince Edward Island recognizes that businesspersons are integral to the advancement of the economy and welcomes any capable individuals with entrepreneurial spirit to come to the province and help the progress continue. For foreign nationals, one avenue for entry into the Province to showcase entrepreneurial ability is through the 100% Ownership Stream.
The applicant must follow the step by step application process. If approved by the Office of Immigration, the applicant will receive nomination from Prince Edward Island and will need to sign an escrow agreement. The escrow agreement requires the applicant to obtain 100% control of a business through the outright purchase of an existing business or the start of a new business in Prince Edward Island.
The applicant must meet the program criteria, minimum net worth and investment thresholds and will be required to make a conditionally refundable deposit of $200,000 Canadian dollars (CAD) to be held in escrow. If an applicant meets all program criteria in place at application time and is approved, a nomination certificate will be issued.
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Under the 100% Ownership Stream, the applicant must:
Complete and submit all required Federal and Provincial PNP forms and supporting documentation
Possess a minimum verifiable personal net worth of $600,000
Possess a minimum education of high-school equivalent
Be within 21-59 years of age at the time of application
Have transferable management skills and past employment
Have scored a minimum band score of 4.0 on the IELTS within the last 2 years
Provide a detailed business plan for 100% business ownership
Provide active and on-going management of the business from within Prince Edward Island
Sign an escrow agreement containing stipulations on a deposit of $200,000
Make a minimum of $150,000 investment into a new or existing Prince Edward Island owned and operated business
Purchase and Sale Agreement
Should applicant choose to purchase a 100% of an eligible Prince Edward Island business, he/she is required to submit a purchase and sale agreement to the Office of Immigration. The purchase and sale agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
Confirmation that the Business being acquired is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
Purchase price for the Business;
The number, class and conditions of the shares being purchased (if applicable);
Confirmation that the investment does not include a redemption option;
Confirmation that the applicant provides, or will provide, active and ongoing management of the business from within Prince Edward Island;
Timelines for the purchase of the Business;
Confirmation the purchase price is for the whole Business, not a part of the Business;
Detailed description of the activities and interests of the Business.
2) BUSINESS IMPACT – PARTIAL OWNERSHIP STREAM
The Partial Ownership Stream is designed for applicants who wish to transition into the Prince Edward Island business community by becoming a part owner in a business.
The applicant must follow the step by step application process. If approved by the Office of Immigration, the applicant will receive a nomination from Prince Edward Island and will sign the necessary agreements. The applicant, amongst other conditions, must obtain 33 1/3% of the business’ equity or invest $1,000,000 CAD in the equity of the business.
The applicant must meet the program criteria, minimum net worth and investment thresholds and will be required to make a conditionally refundable deposit of $200,000 CAD to be held in escrow.
If an applicant meets all program criteria in place at application time and is approved, a nomination certificate will be issued.
Partial Ownership Stream Eligibility Criteria
The Partial Ownership Stream of the PEI PNP considers applications from experienced business managers and entrepreneurs. The applicants must plan to become a partial owner of an existing and eligible Prince Edward Island business, through investing in that business and being involved in its day to day operations in Prince Edward Island. Furthermore, specific criteria must be satisfied to be nominated under the program.
Under the Partial Ownership Stream, the applicant must:
Complete and submit all required Federal and Provincial PNP forms and supporting documentation
Possess a minimum verifiable personal net worth of $600,000
Possess a minimum education of high-school equivalent
Be within 21-59 years of age at the time of application
Have transferable management skills and past employment
Have scored a minimum band score of 4.0 on the IELTS
Provide a detailed business plan for partial business ownership
Provide active and on-going management of the business from within Prince Edward Island
Sign a escrow agreement containing stipulations on a deposit of $200,000
Make a minimum of $150,000 investment into an existing Prince Edward Island owned and operated business for a partial ownership interest of a minimum of 33 1/3% of voting shares; or make a minimum $1 million investment
Investment Agreement
Should the applicant choose to purchase not less than 33 1/3% of the equity of an eligible Prince Edward Island business, the applicant is required to submit an investment agreement to the Office of Immigration. The investment agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
Confirmation that the Business is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
The proposed amount of the Investment in the Business;
The number, class and conditions of the shares being purchased (if applicable);
Confirmation that the investment does not include a redemption option;
Confirmation that the Investment is not less than 33 1/3% of the equity in a Prince Edward Island business or make an equity investment in the business of at least $1,000,000;
Confirmation that the Applicant provides or will provide active and ongoing management of the business from within Prince Edward Island; and
Time frames for the Investment.
3) BUSINESS IMPACT – WORK PERMIT STREAM
Applicants may wish to transition in a more timely fashion to start a new life and business utilizing a work permit to enter Canada and begin the journey. The Work Permit Stream will allow applicants to come to Prince Edward Island and begin working and learning about the business they will be investing in prior to nomination by the Province of Prince Edward Island.
The applicant must follow the step by step application process. If conditionally approved by the Office of Immigration, the applicant will apply to CIC for a temporary work permit to come to Prince Edward Island to start the process to invest in and operate the business in Prince Edward Island. At the time of work permit issuance, the applicant will sign the necessary agreements outlining what is required of them. Upon meeting the terms and conditions of a performance agreement, the applicant will be nominated by the Office of Immigration for permanent residency to Canada.
Work Permit Stream Eligibility Criteria
The Work Permit Stream of the PEI PNP considers applications from experienced business managers and entrepreneurs. Prior to being nominated by the province for permanent residency, applicants must plan to obtain their work permit and become a sole or partial owner of a business by investing in and actively managing an eligible business in Prince Edward Island. Furthermore, specific criteria must be satisfied to be nominated under the program.
Under the Work Permit Stream, the applicant must:
Complete and submit all required Federal and Provincial PNP forms and supporting documentation
Apply to CIC for approval of a work permit for the Prince Edward Island business
Possess a minimum verifiable personal net worth of $600,000
Possess a minimum education of high-school equivalent
Have transferable management skills and past employment
Have scored a minimum band score of 4.0 on the IELTS
Provide a detailed business plan that falls within an eligible sector and meets all program criteria
Provide active and on-going management of the business from within Prince Edward Island
Sign a Performance Agreement containing stipulations on the business investment
Make a minimum of $150,000 investment into a new or existing Prince Edward Island owned and operated business
Work Permit
Under the work permit option, business applicants have the greatest potential to not only enhance the value of the business they are investing in, but also to integrate into Prince Edward Island society.
Once an application and all supporting documentation has been submitted and approved by Immigration Services, the applicant is deemed eligible for the Work Permit Stream. The applicant will be presented with a letter of support from Immigration Services to apply to CIC for a work permit to Canada.
The applicant will be required to sign a performance agreement with the Office of Immigration. The performance agreement will outline the terms and conditions with which the applicant will be required to execute on the business plan, prior to the Office of Immigration nominating the applicant for permanent residency to Prince Edward Island, Canada.
Performance Agreement
The performance agreement outlines the terms and conditions that must be met prior to receiving nomination for permanent residency under the Work Permit Stream. The applicant must execute the performance agreement as agreed upon with the Office of Immigration. The performance agreement includes, but is not limited to; timelines of investment, amount of investment, reporting and monitoring guidelines, and pre & post nomination requirements. Upon meeting the terms and conditions of the performance agreement, as determined by the Office of Immigration, the applicant will receive a nomination for permanent residency to Prince Edward Island, Canada.
Investment Agreement
Should the applicant choose to purchase not less than 33 1/3% of the equity of an eligible Prince Edward Island business, the applicant is required to submit an investment agreement to the Office of Immigration. The investment agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
Confirmation that the Business is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
The proposed amount of the Investment in the Business;
The number, class and conditions of the shares being purchased (if applicable);
Confirmation that the investment does not include a redemption option;
Confirmation that the Investment is not less than 33 1/3% of the equity in a Prince Edward Island business or make an equity investment in the business of at least $1,000,000;
Confirmation that the Applicant provides or will provide active and ongoing management of the business from within Prince Edward Island; and
Time frames for the Investment.
Purchase and Sale Agreement
Should the applicant choose to purchase a 100% of an eligible Prince Edward Island business, the applicant is required to submit a purchase and sale agreement to the Office of Immigration. The purchase and sale agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
Confirmation that the Business being acquired is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
Purchase price for the Business;
The number, class and conditions of the shares being purchased (if applicable);
Confirmation that the investment does not include a redemption option;
Confirmation that the applicant provides, or will provide, active and ongoing management of the business from within Prince Edward Island;
Timelines for the purchase of the Business;
Confirmation the purchase price is for the whole Business, not a part of the Business;
Detailed description of the activities and interests of the Business.
BUSINESS IMPACT – PROCESS
After receiving approval, the Office of Immigration will forward the nomination to CIC for adjudication for permanent residency to Canada. Upon Federal approval, a Canadian Visa for Permanent Residency and Landing in Canada document is issued.
Upon landing in Canada the applicant has two years with which to execute on the terms and conditions in the escrow agreement. During this time the applicant will be required to report periodically on the progress towards meeting the terms and conditions of the escrow agreement. As well, the applicant will be required to provide follow up information as part of ongoing evaluation of the program by the Office of Immigration. Once the terms and conditions have been met and verified by the Office of Immigration, the applicant is eligible for refund of the $200,000 CAD escrow deposit, without interest.
The applicant must meet the requirements at each stage and receive approval prior to advancing to the next step.
Step #1 – Complete and submit the Business Impact Category self-assessment, business proposal
Step #2 – Interview with the Office of Immigration
Step #3 – Submission of business and settlement plans to the Office of Immigration
Step #4 – Nomination for permanent residency
Step #5 – CIC approval, landing in Canada and reporting to the Office Immigration, Settlement and Population
Step #6 – Compliance with the escrow agreement
Step #7 – Successfully meeting conditions of the escrow agreement and receiving deposit
Please be advised that in no way does a Prince Edward Island nomination guarantee that the applicant will receive a permanent resident visa. Do not make permanent arrangements to move to Prince Edward Island (example: leave your job, sell your property, etc.) until the application for a Permanent Resident Visa has been assessed and confirmed by CIC via the visa office/embassy.
CIC is responsible for ensuring all applications for permanent resident status meet the requirements of the Immigration and Refugee Protection Act and all statutory admissibility checks are completed. CIC has the final authority to approve or refuse an application for permanent residency.
Sources:
http://www.gov.pe.ca/index.php3?lang=E
http://www.gov.pe.ca/immigration/index.php3?number=1037601&lang=E
