The Entrepreneur Program seeks to attract experienced persons that will own and actively manage businesses in Canada that will contribute to the economy and create jobs. Entrepreneurs must demonstrate business experience which means that the entrepreneur must have managed and controlled a percent of equity of a qualifying business,  must have a minimum legally obtained  net worth of CDN $300,000, and will be subject to conditions upon arrival in Canada. The entrepreneur must have the intention and the ability to control a percentage of equity of a qualifying Canadian business, and must provide active and ongoing management of the qualifying Canadian business. The entrepreneurs business must create at least one new full-time job for a Canadian citizen or permanent resident.  The entrepreneur must comply with the following regulatory requirements;

What is an Entrepreneur

An entrepreneur means a foreign national who has business experience; has a legally obtained minimum net worth; and provides a written statement to an officer that they intend to and will be able to meet the conditions referred to below.

Conditions

An entrepreneur who becomes a permanent resident must meet the following conditions:

a.                   the entrepreneur must control a percentage of the equity of a qualifying Canadian business equal to or greater than 33 1/3 per cent;

b.                   the entrepreneur must provide active and ongoing management of the qualifying Canadian business; and

c.                   the entrepreneur must create at least one incremental full-time job equivalent for Canadian citizens or permanent residents, other than the entrepreneur and their family members.

The entrepreneur must meet the conditions for a period of at least one year within the period of three years after the day on which the entrepreneur becomes a permanent resident.

An entrepreneur who becomes a permanent resident must provide to an officer evidence of compliance with the conditions within the period of three years after the day on which the entrepreneur becomes a permanent resident.

An entrepreneur must provide to an officer

a.                   not later than six months after the day on which the entrepreneur becomes a permanent resident, their residential address and telephone number; and

b.                   during the period beginning 18 months after and ending 24 months after the day on which the entrepreneur becomes a permanent resident, evidence of their efforts to comply with the conditions.

Business experience

In respect of an entrepreneur, 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.

Net worth

in respect of an entrepreneur, means 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.

Minimum net worth

In respect of an entrepreneur, CDN $300,000; and in respect of an entrepreneur selected by a province, the minimum net worth required by the laws of the province.

Qualifying Canadian business

This  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:

a.                   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;

b.                   the percentage of equity multiplied by the total annual sales is equal to or greater than CDN $250,000;

c.                   the percentage of equity multiplied by the net income in the year is equal to or greater than CDN $25,000; and

d.                   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

This means 1,950 hours of paid employment.

Net assets

In respect of a qualifying business or a 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

In respect of a qualifying business or a 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 of equity

Percentage of equity means,

a.                   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;

b.                   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

c.                   in respect of a partnership or joint venture, the percentage of the profit or loss of the partnership or joint venture to which a foreign national or their spouse or common-law partner is entitled. 

Summary of an Entrepreneur

An entrepreneur therefore is a person who intends, and has the ability, to establish, purchase or make a substantial investment in a business or commercial venture in Canada that will make a significant contribution to the economy. The entrepreneur's business must result in employment opportunities being created or continued in Canada. The entrepreneur must have the intention and the ability to provide active and on-going participation in the management of the business enterprise. The entrepreneur should also have a reasonable expectation of on-going commercial activity and of profit generation, and should hold a significant degree of control in the business.

Substantial Investment

A substantial investment does not require a specific dollar figure, nor does it require a fixed minimum investment. A substantial investment may be established by evidence of the amount of capital transferred to Canada for investment or by the degree of control acquired over the business in which the investment is made. The business venture must also contribute in more than a temporary or marginal way to the level of economic activity in Canada.

Signed Undertaking

Before the visa is issued, the entrepreneur is required to sign a statement that he or she intends and will be able to meet the conditions of permanent residence. These requirements must be met within three years of becoming a  permanent resident. To remain in Canada, the entrepreneur and family members must do the following within three years of becoming a permanent resident:

a.        Controlled and actively managed a qualifying Canadian business for at least one year after becoming a permanent resident.

b.       Able to support the family, including children, spouse or common-law partner.

c.        The business must have created at least one full-time job equivalent for a Canadian citizen or permanent resident other than the entrepreneur or dependants.

First Two Years

During the first two years, you must report regularly to an officer at a Citizenship and Immigration Centre. The officer will advise you on how you can meet the conditions of your permanent residence in Canada.

Exploratory Visit

Entrepreneurs are encouraged to take an exploratory visit to Canada prior to applying for Permanent Residence. The visit is intended to give the applicant a first-hand knowledge about living and doing business in Canada