Canada is a great place to do business. According to the World Bank, Canada is ranked 23rd in its ease of doing business index. Canada has a highly-educated workforce and offers one of the lowest corporate tax rates in the world.
It is for these (and many other) reasons that business owners, entrepreneurs, and investors strive to become Canadian citizens. Canada does not have a “golden visa”, “citizenship by investment” or other similar passive investment programs where you can get Canadian citizenship in exchange for an investment; however, there are still many ways for business owners, entrepreneurs and investors to become Canadian citizens by investing in Canadian businesses.
In general, to become a Canadian citizen you must meet the following requirements:
This means that to become a Canadian citizen, you have to become a permanent resident first, which is the hardest part.
Here, we explore some of the available options for business immigrants to relocate to Canada through investment and (ultimately) become Canadian citizens.
There are three general immigration options available to businessmen, investors, and entrepreneurs to become Canadian permanent residents.
Many business owners and investors mistakenly believe that Express Entry is the only option for them to immigrate to Canada. They often start the process by researching their eligibility under the “professional” stream of the Express Entry Program and quickly discover that they may not qualify for this program. The “professional” stream of the Express Entry Program is primarily targeted toward younger professionals (under 35 years old) with strong English or French language skills (CLB7 language or higher), outstanding education credentials (master’s degrees or higher), and often, work or study experience in Canada.
Many successful professionals, entrepreneurs and investors over 35 years old often lose their hope to immigrate to Canada when they assess their chances under the “professional” stream of the Express Entry; however, they often forget or are simply unaware of the “executive” stream of the Express Entry program. This is primarily designed to attract senior managers, business owners and entrepreneurs by awarding this category of people an extra 200 CRS points for “arranged employment” in Canada.
The process is relatively straightforward.
Generally speaking, to become eligible to immigrate under the “executive” stream of the Express Entry program, foreign investors need to go through several steps:
On average, it takes between 12-18 months to go through the steps above. Let’s take a closer look at each step.
There are 4 ways for foreign investors to invest in a Canadian business:
|Cost||Risk (profit potential)||Time to operate before PR application||Difficulty to operate||Conditions for Permanent residence application|
|Start a New Business||Low ($50,000+)||High||At least 12 months||Difficult|| Active company in Canada;|
At least 1 Canadian employee;
12 months of operations.
|Buy a Business||High (150,000+)||Moderate||No minimum requirement||Moderate|| Ownership of 51% of shares;|
At least 1 Canadian employee.
|Buy Shares in a Business||Moderate ($100,000 +)||Moderate||No minimum requirement||Simple|| Company existed for at least 12 months;|
Company has sufficient funds.
|Buy a Franchise||Moderate ($100,000+)||Low||No minimum requirement||Simple|| Active company;|
At least 1 Canadian employee.
There are pros and cons to each approach. Contact us to discuss which option suits you best.
Once you have registered or purchased a Canadian business, you can apply to obtain a work permit as a business immigrant. Based on your background and immigration goals, several different work permits are available. They include the following:
Upon arriving in Canada as a foreign worker, you will need to operate your business for a specific period before you can transition to permanent residence. The length of operation depends on the type of business you have (i.e. established or new) and your work permit type.
In general, your business must be “active” before you can apply for permanent residence, which means it has the following features:
Once your Canadian business is active, as explained above, you can apply for permanent Canadian residency as the manager of your business. That said, you will need to meet certain criteria, which include the following:
Pros: In terms of advantages, one key benefit centers on the lack of an upfront, minimum investment. While you should set aside an amount that makes sense for your specific industry or operation, we recommend CND $100,000 to cover your initial costs of operating your business in Canada. Another significant advantage is that this first option grants a fast route to permanent residence (with an average of between 12-18 months).
Cons: Unfortunately, this option contains a high language requirement, which is something to keep in mind if your language skills aren’t up-to-par. For instance, you’ll need to obtain an IELTS General 6 for each band.
This second category differs slightly in that business immigrants apply directly to a provincial nominee program (“PNP”. This application process allows these immigrants to potentially obtain permanent residency and eventually Canadian citizenship.
While the processes vary by province, most provinces have adopted the following process:
You’ll start by registering an expression of interest with your preferred province. After receiving an application invitation, you’ll apply and (hopefully) pass the interview. Upon signing a performance agreement with the province, you’ll apply for a Canadian work permit. Once you arrive in Canada as a foreign worker, you’ll establish your company and operate your business according to the performance agreement you signed. Finally, you’ll apply for nomination and, subsequently, for permanent residence.
Again, this is just a general procedure. You’ll want to confirm the exact process with your preferred province.
Below are the PNPs for business immigrants to Canada:
Pros: In terms of advantages, PNPs attract many business immigrants due to their very low language skill requirements. For example, Ontario, Prince Edward Island and Saskatchewan accept applications from business immigrants with language skills CLB 4.
Cons: Conversely, PNPs require higher initial investments (e.g. CND $150,000 and up), minimum net worth requirements and take longer to obtain permanent residence (with an average of between 24-36 months).
The Start-up Visa Program provides for permanent residence to immigrant entrepreneurs and helps them become established in Canada. The program’s goal is to attract immigrant entrepreneurs and help them create long-lasting businesses that will employ Canadians and drive economic growth.
The Start-up Program is attractive because it does not require a minimum initial investment, there is no net worth requirement, and the applicants can choose to live anywhere in Canada. Additionally, if the business fails, it doesn’t affect your permanent resident status.
Successful applicants for the Start-up Visa program must meet the following conditions:
Canadian-designated organizations are business groups that have been chosen by the Immigration, Refugees and Citizenship Canada (“IRCC”) department to support start-ups through the Start-up Visa Program. Each organization decides independently which business proposal to review and has its criteria for assessing it. If an organization decides to review your business idea, it’ll assess the potential of your proposed business idea and hypothesize whether or not it’ll succeed. If an organization chooses to support your proposal, it’ll give you a Letter of Support which you can use to apply for a work permit and permanent residence in Canada.
The process for applying to the Start-up Visa Program differs depending upon the designated organization’s intake and review procedures, but generally looks like this:
We are business and legal professionals and, along with our reputable partner network, can assist you with each step of the Start-up Visa Program.
As you can see, entrepreneurs, business owners, and investors have several different paths to becoming Canadian citizens; however, the vast number does not mean that the process is easy. It requires hard work and a well-thought-out strategy to maximize your odds of success.
At Sobirovs Law Firm, we can help you develop a strategy and jump through all of the hoops to become a Canadian citizen. Learn more about our services and how we can provide value to you, here. We look forward to hearing from you!
Sobirovs Law Firm is always eager to hear from you!
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