The authorities require the entrepreneur to control at least one-third of a qualifying Canadian business in Canada, once the entrepreneur is in Canada. This is in accordance with the provisions specified in R88.
As such, the entrepreneur would need to hold a clearly defined degree of control in the business as the table given below illustrates.
Percentage of Equity
Total Annual Sales ($)
Annual Net Income ($)
Net Assets at Year End
The Guidelines for Counselling Applicants About the Conditions of Permanent Residence and Qualifying Canadian Businesses
In many cases, the officers typically end up describing the conditions of permanent residence to the applicants. While doing this, they would need to keep the guidelines that follow in mind.
Entrepreneur applicants would need to satisfy the requirement of active and ongoing participation in the management of the business. For this, they would need to demonstrate their inputs towards management decisions through involvement in the operations of the business on a continuing basis.
When they make their assessments, the Business Centres of Citizenship and Immigration Canada (CIC) would need to consider the following points:
- They would need to judge each case on its own merits
- It is worth highlighting here that they would need to be mindful that the authorities do not require the entrepreneur to be present each and every day
- They would need to avoid accepting any artificial transactions
- The definition and details of artificial transactions have been specified in the section titled ‘What is a Qualifying Business’ given above
- For more details on artificial transactions, the officers would need to go through the provisions specified in R89
- They would need to remember that passive investments in real estate, bonds or other securities, or other investments made primarily with the hope of capital appreciation are insufficient for satisfying the requirement of qualifying Canadian businesses
- Situations could arise where entrepreneurs might enter into franchise agreements or into partnership agreements with other entrepreneurs
- These entrepreneurs would need to meet the all the provisions of the program
- These provisions would typically pertain to the guidelines defining the minimum degree of control over a qualifying Canadian business and active and ongoing management
- As such, the officers would need to highlight that arrangements where one partner funds a partnership and the other partner provides the relevant business expertise does not satisfy the prescribed requirements
- They would need to remember that a review of jurisprudence has established that a professional practice refers to a business
- As such, it does not matter whether or not the professional devotes additional time to providing services to clients instead of managing the practice
- However, such individuals would need to show that they have satisfactorily created at least one full-time job equivalent in Canada through their company
- Only after demonstrating this would they be able to get the authorities to remove the conditions on them
The Guidelines for Creating at Least One Incremental Full-time Job Equivalent in the Qualifying Canadian Business
Entrepreneurs would need to create at least one incremental full-time job equivalent for one or more Canadian citizens or permanent residents. This does not include jobs created for the entrepreneur and their family members. The entrepreneur would need to meet the above conditions for a period of at least one year within a three-year period after becoming permanent residents.
The authorities do not accept situations where entrepreneurs retain the services of accountants, lawyers or business consultants on a fee-for-service basis. This is because such arrangements do not typically create employer-employee relationships.
Making the Eligibility Decision
Officers would need to review the applications submitted by the entrepreneur applicants. Thereafter, they would need to determine whether:
- The applicant is not eligible
- In this scenario, the officers would need to refuse the case OR,
- The applicant meets the regulatory definitions
- In this scenario, the officers would proceed to examining the case according to the prescribed selection criteria
Assessing Eligibility – The Selection Criteria
This section outlines the procedures that officers would need to follow once they assess applicants against the selection criteria for entrepreneurs. They would typically assess applicants against the selection criteria once they are satisfied that the applicant meets the prescribed regulatory definitions.
The officers would need to assess the applicant against the prescribed selection criteria for entrepreneurs. For this, they would typically need to examine the business and financial background of the applicant. TheImmigration and Refugee Protection Act (IRPA) contains an extensive tool set. This tool set enables offices to ensure program integrity. For instance:
- Applicants are obliged to answer truthfully based on the provisions specified in A16 (1)
- The provisions specified in A40 deal with misrepresentation and,
- The provisions specified in A36 and A37 deal with criminality