Last Updated on August 29, 2016
Passive Investment Proposal: A passive investment proposal refers to an investment that a foreign national makes, which focuses on or leads to the province nominating the foreign national. In addition, this investment could result in the successful immigration of the foreign national to Canada.
The main characteristics of a passive investment proposal would typically include:
- The fact that the foreign national will not have any active, ongoing or direct responsibilities in managing or operating the enterprise financed or,
- Certain terms of investment that include a redemption option that the foreign national could exercise after a specified span of time or,
- An understanding that the foreign national will not reside in the nominating province
In many cases, it is possible that the officers become aware of new passive investment schemes. If this happens, the authorities expect these officers to inform International Region / RIM at [email protected].
Immigration Linked Investment Scheme: The provisions specified in R87 (9) mention the definition of the immigration linked investment scheme. The definition includes any strategy or plan where:
- The parties entered into the agreement or arrangement primarily for the purpose of acquiring status or privilege under the provisions specified in the Immigration and Refugee Protection Act (IRPA)
- One of the objectives of the scheme is to facilitate immigration to Canada successfully and,
- One of the objectives of the promoters of the strategy or plan is to raise capital
In many cases, it is possible that the officers become aware of new immigration linked investment schemes. If this happens, the authorities expect these officers to inform International Region / RIM at [email protected].
It is worth highlighting that the provisions specified within R87 (6) (b) mention details of investment schemes. These provisions require provincial nominee applicants to control a percentage of equity in the business, which is equal to or greater than 33 1/3 percent. In addition, these provisions require provincial nominee applicants to make an equity investment in the business of at least $1 million. These requirements are consistent with the requirements concerning active and ongoing management of a business, as specified in the provisions of R87 (6) (c).
Provincial Nomination Certificate: The government of a province typically issues this certificate to applicants intending to reside in that specific province. In many cases, the government of the province issues this certificate under a provincial nomination agreement. The documentation usually goes directly from the province to the visa office. Ideally, it should not arrive via the applicant or any agent working on behalf of the applicant.
All parties are in agreement on the fact that the provinces would need to forward all nomination information to the visa offices in a spreadsheet format. These provinces would typically forward these details visa Entrust. The spreadsheet would need to contain the same information about each candidate as that specified on each separate nomination certificate. In addition, the visa office would need to express its satisfaction that the spreadsheet is coming from the responsible provincial or territorial authority.