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Immigrant
Entrepreneur Program Criteria
The immigrant entrepreneur
element of the Nominee Program is intended for prospective immigrants
who propose to establish a business on PEI or who intend to be self-employed.
Applicants under the Prince
Edward Island Provincial Nominee Program in this category are required
to show:
- Net Worth
and Liquidity Requirements
Immigrant entrepreneurs
must have a minimum net worth of $750,000, including minimum liquid
assets of $350,000. Liquid assets includes for example, cash,
demand deposits with a financial institution, term deposits, tax
shelters convertible to cash, and readily marketable investments
including publicly traded stocks or bonds.
- Immigrant
Entrepreneur Investment in a New Business Start
Immigrant entrepreneurs
must be prepared to make a minimum business investment of $200,000
to establish a new enterprise. A complete business plan and $100,000
are to be submitted along with their Provincial Nominee Program
application. Once the business is established this $100,000 will
be returned to the applicant. (For more info see Escrow Agreement).
Immigrant Entrepreneurs are also required to place $25,000 in
escrow with the Government of Prince Edward Island as a good faith
deposit. This deposit also gets returned after the applicant has
resided for one year in Prince Edward Island.
Business investment
refers to investment required to finance the assets and operations
of the new enterprise and may include:
1. start-up costs
and early cash flow deficiencies financed by cash, demand deposits
and other liquid assets held in a business account with a recognized
financial institution on PEI, such as a chartered bank, trust
company, credit union or brokerage;
2. inventories and accounts receivable associated with the business
start;
3. licenses, franchises, trade names and other intangible assets
necessary to establish/operate the business and purchased from
third parties, at arm's length;
4. machinery, fixtures, tools and other equipment, excluding passenger
vehicles;
5. real estate, excluding residential real estate, recreational
property, raw land for future development or real estate to be
leased primarily to third parties, whether for business or residential
uses;
6. leasehold improvements to leased business premises.
- Eligible Business
Activity
The immigrant entrepreneur
may establish an active business in virtually any sector within
Prince Edward Island's economy. Active business refers to a business
which generates revenues by selling goods and/or services at arm's
length to third parties and excludes investment holding companies,
real estate rental operations, loan/investment companies and other
non-active investment.
Where professional
credentials or licenses to practice are required to establish
or operate the business on Prince Edward Island, the immigrant
entrepreneur will be required to demonstrate as part of the business
plan, that he/she has met, or can reasonably be expected to meet,
the conditions precedent to start-up.
- Evidence of
Investment in an Eligible Enterprise
The requirements to
be met will be established on a case by case basis, depending
upon the nature of the proposed business assets and operations,
following approval of the business plan.
- Escrow Agreement
This Agreement sets
out the terms and conditions of the Immigrant Entrepreneur’s
application for permanent residency under this category. Immigrant
Entrepreneurs must sign, date and submit two copies of the Escrow
Agreement with their Prince Edward Island Provincial Nominee
Program application. Along with this Agreement, the applicant
shall also submit the sum of One Hundred Thousand Dollars ($100,000
Cdn), payable to Island Investment Development Inc., to be held
by in escrow on the terms set forth in the agreement, and the
Applicant shall also, prior to nomination, provide evidence
of the availability of an additional $100,000 Canadian available
to initiate a new Prince Edward Island based business. The $100,000
plus interest will be returned to the Applicant provided he/she
has abided by the terms and conditions of the Escrow Agreement.
Immigrant entrepreneurs
are required to make an exploratory visit to Prince
Edward Island of at least three business
days duration and preferably, five business days. During the orientation
visit, they are encouraged to research business opportunities
and the feasibility of the new business start or self-employment.
Following pre-assessment of the application, the Province will
issue an invitation for the exploratory visit and will schedule
the official interview with a Program Officer.
- Canada-PEI
Business Service Centre
In addition to the
official interview with an Immigration & Investment Program
Officer, it is mandatory that immigrant entrepreneurs also meet
with a Program Officer at the Canada-Prince
Edward Island Business Service Centre
for assistance and advice in researching business opportunities
on Prince Edward
Island and preparation of the business
plan.
Services are provided
jointly by the Governments of Canada and Prince Edward Island,
free of charge. In most cases, services and advice can also be
delivered electronically once the applicant has returned home
and is ready to prepare the business plan.
Applicants under the
immigrant entrepreneur category are required to prepare and submit
a business plan outlining how the new enterprise is to be successfully
established.
The business plan is
an important part of the selection of immigrant entrepreneurs.
The purpose is to allow the Province to assess the prognosis that
the new business or earnings from self-employment will provide
a reasonable standard of living for the immigrant entrepreneur
and his/her family relocating to PEI.
The business plan submitted
by the prospective immigrant entrepreneur will be provided in
the general format developed by Business Development Bank of Canada
and is available online at www.bdc.ca. The business plan will
form part of the immigration document package for immigrant entrepreneurs.
Complete
our Free Online Assessment
to see whether you qualify for the Prince Edward Island Provincial
NomineeProgram.
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