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Immigrant Entrepreneurs Program

Development and Technology

Last Verified: 2005-09-15

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.

Eligibility Criteria

Immigrant entrepreneurs must have a minimum net worth of $400,000, including minimum liquid assets of $350,000. Liquid assets include, 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.

Summary

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 PNP application.  Once the business is established this $100,000 will be returned to the applicant.  (for more information, refer to PEI-NP-08 Escrow Agreement. Immigrant Entrepreneurs are also required to place $25,000 in escrow with the Government of PEI as a good faith deposit.  This deposit also get returned after applicant has resided for one year in PEI.

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 PEI'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 there is doubt about the eligibility of a proposed business venture, provide the details to a Program Officer in advance.

Where professional credentials or licenses to practice are required to establish or operate the business on PEI, 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. Contact the Program Officer for advice and assistance.

Good Faith Deposit:
In applying to immigrate to Canada under the PEI Nominee Program, the applicant certifies the intention of settling in PEI and establishing a business. As evidence of good faith, the Province requires that the applicant will place in trust with the Government of PEI a $25,000 performance deposit which is fully refundable, with interest, one year after landing provided that the immigrant entrepreneur can demonstrate to the satisfaction of the Province that:

  1. the business is fully operational, selling goods and/or services at arm's length to unrelated third parties; and 
  2. the immigrant entrepreneur and his/her family maintain a residence on PEI.

Evidence that a business is fully operational may include, for example, a visit to the business premises, an examination of the books and records of the enterprise, examination of financial statements independently prepared/reviewed by an independent chartered accountant or certified general accountant, tax returns to the Canada Customs and Revenue Agency or the Provincial Treasury; or other corroboration.

Evidence that a residence is maintained in PEI may include, for example, a pre-arranged visit to establish that the dwelling is owned/leased and occupied by the immigrant family; local employment; utility bills; rental receipts; property tax records; registration of any children at a local school or daycare facility; community corroboration and so forth.

Costs which may be associated with establishing ( i.) and ( ii.) as required by the Province are for the account of the immigrant entrepreneur. Where the immigrant entrepreneur is unable to establish that the criteria cited under ( i.) and ( ii.) have been met to the satisfaction of the Province, the deposit of $25,000 will be forfeited.

It is a serious offence under the Immigration and Refugee Protection Act and Regulations to falsify any documentation to be used by an immigrant to achieve permanent resident status as a nominee or otherwise.

Exploratory Visit:
Immigrant entrepreneurs are required to make an exploratory visit to PEI 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.

When arranging to visit PEI and establishing the schedule for the official interview, applicants should indicate they intend to apply as immigrant entrepreneurs.

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 Business Information Officer at the Canada-PEI Business Service Centre for assistance and advice in researching business opportunities on PEI 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.

Services are provided in Canada's official languages which are English and French. Where interpreters and translation services are required for another language, the cost will be for the account of the applicant.

Please contact the Canada/Prince Edward Island Business Service Centre at:

        Canada/Prince Edward Island Business Service Centre
        75 Fitzroy Street
        Charlottetown, Prince Edward Island
        Canada
        C1A 7K2
        Toll free: 1-800-668-1010
        Fax: (902) 566-7377
        E-mail: pei@cbsc.ic.gc.ca
        Website: http://www.cbsc.org/pe

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. The business plan will form part of the immigration document package for immigrant entrepreneurs.

For more information on the PEI Nominee Program, please visit  http://www.gov.pe.ca/immigration/index.php3?number=61449⟨=E.

For the application forms for the Immigrant Entrepeneur Program, please visit:  http://www.gov.pe.ca/immigration/index.php3?number=66516

Prince Edward Island Contact(s):
Immigration and Investment Division
Development and Technology
94 Euston Steet, 2nd Floor
P.O. Box 1176
Charlottetown, Prince Edward Island  C1A 7M8
Telephone: (902) 894-0351
Fax: (902) 368-5886
E-mail: peinominee@gov.pe.ca