Canada

Immigration Investor Program

Canada wants immigrants who can support the development of a strong and prosperous Canadian economy through employment, investment or by starting a business in Canada.

Moving to Canada is not only an exciting opportunity, but also a great challenge. Anyone interested in immigrating to Canada, will discover that there are several categories when applying for Canadian permanent residency status. Further, you also need to carefully consider how to maintain your residency, acquire citizenship and plan your taxes.

VARIOUS APPLICATION CATEGORIES
Immigration to Canada is through three major categories: A) Federal independent (economic) class; B) Family class; and C) Refugee class (asylum seekers). Other categories which are less known to the public are: D) Quebec destined or selected applicants holding a “Certificate de Selection du Quebec” (CSQ) and E) the new provincial nominee programs (PNPs).
To obtaining a permanent residency visa one needs to be assessed and selected in one of the Federal, Quebec or PNP immigration programs. After being selected you need to comply with the Federal government requirements of medical, security and criminal.
Independent (economic) class applicants are individuals who rely on their skills, either professional or business experience. The applicants applying based on their professional skills apply under the skilled workers program and the applicants applying under their business skills are the Investors or Entrepreneurs.

FEDRERAL INVESTORS
The immigrant investor program seeks to draw experienced business people with capital to Canada. The salient features of the investor program are that investors are NOT required to start a business in Canada, no immigration terms and conditions are imposed to one’s dependants or oneself upon admission to Canada, and their investment is fully guaranteed by the Federal government.

These applicants must demonstrate ownership and control of a “qualifying business” for 2 years in the past 5 years. Qualifying Businesses are measured with respect to four fundamental business factors: number of full time employees, total net sales, net income and net assets. Investor applicants could also demonstrate the required 2 years experience in a management position in which they have controlled at least 5 full time employees.

These applicants must also have a minimum net worth of CAN $ 1,600,000 or more, which was obtained legally and is transferable to Canada. The “Net Worth” in respect of an investor, means the fair market value of all of the assets of the investor and their spouse minus the fair market value of their liabilities.

The applicants accepted under this category are required to place CAN $ 800,000 for a period of five years with the Receiver General of Canada. This placement will pay no interest, however, it is fully guaranteed by the Federal government. Investor may choose to finance the $800,000 investment through an eligible Canadian financial institution. Financing the required investment will cost approximately CAN $180,000.

QUEBEC INVESTORS
The Quebec authorities will select the applicants destined for Quebec province and issue them a “Certificate de Selection du Quebec” (CSQ), the official immigration document issued by the Quebec government. The Quebec regulations have the same categories as the Federal regulations, but the selection criteria are somewhat different than the Federal regulations described above. Once selected by Quebec, one should make a separate application to Citizenship and Immigration Canada (CIC) for permanent residency. Once successfully undergoing Medical, Criminal and Security checks required by the Government of Canada, an immigrant visa will be issued.

The salient features of the investor program are that investors are NOT required to start a business in Quebec, and no immigration “terms and conditions” are imposed to one’s dependants or oneself, upon admission to Canada 

These applicants must demonstrate Ownership/Control or Management of a legitimate business for 2 years in the last five years before the application date.

These applicants must also show a net worth of CAN $ 1,600,000, or more, which was obtained legally, through lawful economic activities and is transferable to Canada. The “Net Worth” in respect of an investor, means the fair market value of all of the assets of the investor and their spouse minus the fair market value of their liabilities.

The applicants accepted under this category are required to place CAN $ 800,000 for a period of five years with “investissement Quebec”, a Quebec government owned and operated investment fund. This placement will pay no interest, however, it is fully guaranteed by the Quebec government. Investors may choose to finance the $400,000 investment through an eligible stock broker recognized by the Quebec government’s “commission des valeurs mobilieres du Quebec”. Financing the required investment will cost approximately CAN $180,000.

There are some major differences between the Federal and the Quebec business immigration program. Quebec looks at the individual, not the just the application. Quebec has well-trained business specialists to conduct immigration interviews, in contrast to Federal immigration officers, who do not have the same degree of business training or expertise. Lawyers, members of the Quebec bar, can also be present at the interviews of their clients. Finally, the interviews for Quebec business applicants can be scheduled in Montreal in a few months, avoiding in some cases years of waiting to obtain an interview compared to the Federal business applicants.

PROCESSING TIME
The processing time of an application varies between 18 to 24 months depending on a number of factors including the Canadian government’s overall selection objectives by geographic pool, immigration category and volume of applications from various countries.

MAINTAINING RESIDENCY
According to Section 28 (2) of Canada’s Immigration Act, a permanent resident (PR) must comply with a residency obligation and accumulate a total of 730 days with respect to every five years period. These 730 days are a total of physically days in Canada AND days outside Canada accompanying a Canadian citizen, who is their spouse or in the case of a child, their parent AND days outside Canada employed on a full time basis by a Canadian business.

CITIZENSHIP
When a person has been lawfully admitted to Canada for permanent residence and has, within the four years immediately preceding the date of citizenship application, accumulated at least three years of residence in Canada, he may make an application for Canadian citizenship. The required residency of 1095 days is not only physical presence; applicants who had in mind and in fact, settled into, maintained or centralized their ordinary mode of living in Canada could be determined to have fulfilled the citizenship residence requirements even if not physically present. 

TAXATION
According to Canada Income Tax Act, all persons residing in Canada should declare their worldwide income. Canada has many double taxation treaties with several countries. Citizens of Canada who are non-residents do not have to declare their income, if they are not living in Canada and have left Canada with an intention of not coming back. Of course, citizens of Canada could decide at any time in the future, to change their mind and return.

The basic taxes in Canada are Consumption tax (Federal and Provincial) paid by all, Personal income tax which is based on you level of income and Corporate tax.