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There are numerous opportunities available for non-residents to invest in Canadian businesses. This venture is even more appealing since the Canadian government does not require immigration status to invest in a business, register, or own equity /shares in multiple businesses or corporations. The only time you need any immigration status in Canada is if you plan to work on or in the business onsite or need Canadian banking services. Technically a non-resident who has never visited Canada can own an infinite number of businesses in Canada. However, finding clear answers on how much investment is required is sometimes hard to sort out. We’ll identify four types of investor pathways and lay out the investment budgets needed to help you decide which option is best for you.
Deciding what your goal is when looking to invest in a business will help to clarify which program option is available and what the specific investment requirements are for your chosen path.
Are you interested in applying for the Canada Investor Visa? At INGWE we are EXPERTS and we can support you throughout the process, we have licensed business immigration professionals ready to help. Get a FREE email assessment, click here.
This overseas investor is seeking business expansion strategies, portfolio diversification, additional overseas revenues from a profitable business, and so forth. Immigration is not their goal nor do they want to stay in Canada or settle their families here – although it could be an option down the line.
Investment: The budget range for this path is completely up to the investor since immigration is not part of their goal. However, a word of caution is recommended; if you plan to invest in an existing operational business in Canada which is consistently profitable, and it’s located in urban areas – not rural – then you should budget anywhere from $500,000 to start up to $1million for a small profitable business. Anything between $3m to $8m would be considered a small-medium sized enterprise, demanding a higher budget. But again, in this category since no immigration is included, you can invest $0 to any figure – as it’s only a business strategy.
Are you interested in applying for the Canada Investor Visa? At INGWE we are EXPERTS and we can support you throughout the process, we have licensed business immigration professionals ready to help. Get a FREE email assessment, click here.
These applicants are applying for work permits that are not direct paths to Canadian Permanent Residency. The work permit is to be renewed while running the business inside Canada. Of course, the investor’s dependent family members are also eligible for work and study permits. The programs under this category would be C10/C11/Bilateral agreements such as CUSMA, CPTPP, and other agreements with Canada and other nations - allowing investors to come to the country to start or run a business.
Investment: When investors plan to also apply for a work permit through an investment in a business, then the magic number depends on the area of the business – whether it’s in a rural or urban region. The population size of the business location and whether it’s a major metropolitan area with a high population density will dictate an increased investment budget to prove ‘economic benefit’ for Canada as per the immigration regulations.
If you’re looking to invest in a major city such as Toronto or Vancouver, don’t plan on anything below CAD$450,000 as proof of benefit to the local economy. Keep in mind that if you cannot prove economic, social, or cultural benefit to Canada through your investment, the IRCC officer may ask you to go through an LMIA process for investors. You can find our answers to LMIA questions here. If you plan to invest in a rural region, anything from $100,000 and higher can suffice. There are 2 key factors to consider for a successful case in this category:
* Your net worth and past entrepreneurial endeavors are important in your application. The logic is that you can’t truly be an investor if the amount you plan to invest is more than 50% of your entire net worth or if you have never owned a business or held a senior management position.
* The Provincial Nominee Program (PNP) requirements for their entrepreneur streams are a good benchmark to guide you in applying for federal investor work permits.
* IRCC and CBSA officers can be subjective when assigning “reasonable” investment amounts. Applicants from areas of eastern Asia tend to be subjected to far higher expectations. Don’t ask me why – it’s just the way it is.
If you are interested in applying for immigration to Canada through the Canada Investment Visa, look no further, that’s our specialty here at INGWE Canada. We have successfully supported applicants from +50 different nationalities. Get a FREE email assessment, click here.
These applicants are applying for work permits under provincial entrepreneur programs, which lead to PR after running the new or existing business for a specific duration of time. These are more straightforward since the provinces have outlined exactly what the minimum investments should be to be eligible to become a Provincial Candidate and then a Provincial Nominee for PR. We have several articles and videos that compare the available PNP Entrepreneur program.
Investment: Provincial Nominee Programs start at $100,000 minimum investment for rural programs up to $150,000 (in Nova Scotia) and balance regions are anywhere from $250,000 and higher. The requirements are written in detail on each Province’s website, and unlike the Federal LMIA exempt investor work permits, these PNPs have detailed blueprints of what they expect of any investor planning to apply.
If you are interested in applying for immigration to Canada through the Canada Investment Visa, look no further, that’s our specialty here at INGWE Canada. We have successfully supported applicants from +50 different nationalities. Get a FREE email assessment, click here.
The fourth category includes immigration programs which can be combined with purchasing or investing in an existing business but are not mandatory. These examples include the Federal Startup Visa program and The Intra-Company Transfer program. It is not mandatory under these programs to buy or invest in an existing business, but since ‘economic benefit’ for Canada is a core part of both programs, applicants & investors may choose to buy into an existing business that has customers, revenues and is even profitable.
In the case of Startup Visa applicants, instead of trying to reinvent the wheel and prove to the IRCC officer that they have a product, solution, or technology that can be successful in Canada, some Startup co-founders invest in an existing business to show that they are implementing their technology or solution into that business – hence acquiring customers, and market share immediately. For Intra-Company Transfer investors, the same logic prevails. Instead of setting up a new branch or subsidiary in Canada from scratch, they invest in an existing Canadian business complementing their operations, with at least 51% share purchase. In this way, they gain immediate access to the Canadian market with customers, revenues, and they have Canadian staff on payroll. This category is unique and only very business-savvy applicants go with these routes.
Investments: Although investing in an existing business is not a requirement as part of the SUV or ICT (C61/62/63) programs, it can be part of the applicant’s strategy to invest in something tangible. We all know most of the SUV investments are not tangible, real, or have any realistic business ROI – but with an investment in an ongoing business that aligns with the technology or industry the Startup is pitching, it can provide both income/positive cash flow for the co-founders AND prove to the IRCC that this Startup is serious. Significant benefits for the Canadian economy in general start at CAD$250,000 – anything in this range or higher would suffice. For the ICT cases, this is also the same rule of thumb, and investing in an ongoing business is not an eligibility requirement, although an investment in hiring Canadians is usually a key factor if no social or cultural benefits are part of the business plan (although business plans are not even mandatory). Investing a minimum of $250,000 is important if it’s a new branch or existing business. Typically for our own ICT cases, we pitch $450,000 for the first 4 years, with $150,000 to $250,000 in the first 2 years.
If you are interested in applying for immigration to Canada through the Canada Investment Visa, look no further, that’s our specialty here at INGWE Canada. We have successfully supported applicants from +50 different nationalities. Get a FREE email assessment, click here.
Keep in mind that in all these cases, the actual investment amount is relative. Investing $100,000 in an ice cream shop is a lot but investing the same amount to manufacture cement seems like a joke. So please use your common business sense. Planning to invest in big metropolitan cities such as Vancouver or Toronto will always be the most scrutinized under these categories, but going outside the major cities can always help boost your chances of success. Remember that if you are in categories 2-4, meaning immigration is part of your business investment strategy, and have never visited or explored Canada, or done business here, and don’t have a local JV partner, the chances of success are not super high – unless you are from a visa-exempt country.
If you’re thinking about immigrating whether permanently or temporarily - you’re at the right place! Our team speaks over +9 languages, and we help applicants from over 50 different countries during their immigration process. Get a FREE email assessment, click here.
If you’re ready to apply and would like a 1-on-1 session with me or one of immigration team members at INGWE, you can also book a session directly using this consultation link.
