This class falls under the broader category of Business Immigration.
Entrepreneurs are those business people who have had experience with
managing a qualifying business in the past in another country and wish
to move to Canada to be able to open up a business in Canada and
acquire immigration at the same time.
TThe basic rules are that the entrepreneur must establish or acquire
a percentage of equity (at least 33.33%) in a qualifying Canadian
business that he/she must actively manage. The business must create
at least one new job for a Canadian citizen or permanent resident.
This has to be done within two years of arriving in Canada so that the
business can show at least one year of existence by the third year.
Once this is done, the 'condition' is removed and the entrepreneur
becomes a landed immigrant with no further regulatory requirements.
One pre-requisite is that the entrepreneur shows a minimum net
worth of Cad. $300,000 of legally obtained funds.
The rules regarding the management of a qualifying business prior
to moving to Canada are stringent. According to the Immigration
department,
"Qualifying business" means a business - other 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 2
full-time job equivalents per year;
-
that the percentage of equity multiplied by the total
annual sales is equal to or greater than $500,000;
-
that the percentage of equity multiplied by the next
income in the year is equal to or greater than $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 $125,000
The requirements for the Canadian business are as follows:
"Qualifying Canadian business" means a business operated in
Canada by an entrepreneur -- other than a business primarily for
the purpose of deriving investment income, such as interest,
dividends or capital gains -- for which there is in any year
within the period of three years after the day the entrepreneur
becomes a permanent resident documentary evidence of any two of
the following:
-
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;
-
the percentage of equity multiplied by the total annual
sales is equal to or greater than $250,000;
-
the percentage of equity multiplied by the net income in
the year is equal to or greater than $25,000; and
- the percentage of equity multiplied by the net assets at the end
of the year is equal to or greater than $125,000 (courtesy
CIC).
Transam's edge
We at Transam are not only experts in immigration law but are also experts
in accounting and taxation issues at an international level. This aspect is
particularly significant when it comes to the entrepreneur category. As
indicated above there are strict guidelines which have to be met as follows:
-
Calculation of the entrepreneur's net worth has to be presented in
verifiable format in dollars
-
The entrepreneur's business experience prior to moving to Canada
has to be stated in quantifiable terms, e.g. sales, net income,
net assets, etc.
-
The entrepreneur's business set-up after moving to Canada has
to be stated in quantifiable terms, e.g. sales, net income, net
ssets, etc.
We hold professional accounting designations like C.A. (Chartered Accountant)
from Canada and C.P.A. (Certified Public Accountant) from the U.S., and C.M.A.
(Certified Management Accountant) from Canada. We are thereby able to properly
present from an accounting and taxation point of view all the required
information so that the immigration rules and regulations are met.
