INTRODUCTION
The Immigrant Investor Program (also known as the Investor Category
of the Business Class) seeks to attract experienced businesspersons
and capital to Canada. This category is ideal for those who want to
immigrate to Canada but who do not wish to be obligated to engage in
any type of business/employment activity upon their arrival. The
ever-increasing popularity of the Immigrant Investor Program among
new immigrants to Canada is self-evident.
ELIGIBILITY
To be eligible to apply for Permanent Residence in Canada in the
Investor Category, Investors must demonstrate business experience, a
minimum net worth of 800,000 CAD and make an investment of 400,000
CAD. An Investor's net worth need not have been created by his/her
own endeavours but, rather, must have been "legally obtained" (i.e.
inheritance, gift, etc.). Assets of an Investor's spouse/common-law
partner/same-sex partner are also included when assessing net worth.
There are two (2) ways for an Investor to demonstrate business
experience:
(i) management and control of a qualifying business of
sufficient size;
OR
(ii) management of a business, or a portion of a business,
(without the need to own it) with at least five (5) full-time (37.5
hours per week or more) employees.
(i) Ownership Option
In the ownership option, Investors will be required to provide
documentation, proving that, within any two (2) of the last five (5)
years, they controlled and managed a Qualifying Business that meets
any two (2) of the defined requirements/attributes for full-time
(37.5 hours per week or more) employees, sales, net income and
equity.
The following chart sets out the minimum requirements for a
Qualifying Business at various percentages of ownership.
|
1. Ownership Option
|
|
|
ATTRIBUTE
|
PERCENTAGE OWNERSHIP OF BUSINESS
|
| |
. |
100%
|
50%
|
20%
|
|
(i) |
FULL-TIME
EMPLOYEES |
2
|
4
|
10
|
|
(ii) |
SALES (CAD) |
500,000
|
1,000,000
|
2,500,000
|
|
(iii) |
NET INCOME
(CAD) |
50,000
|
100,000
|
250,000
|
|
(iv) |
EQUITY (CAD) |
125,000
|
250,000
|
625,000
|
(ii) Management Option
As an alternative to actual ownership, Investors may qualify by
providing documentary proof that, over any two (2) of the last five
(5) years, they had managed at least five (5) full-time (37.5 hours
per week or more) employees in a business.
MECHANICS
OF INVESTMENT
Prior to visa
issuance, Investors must pay 400,000 CAD to the Receiver General for
Canada. Citizenship and Immigration Canada, as agent for approved
provincial government-administered venture capital funds, will
prepare and deliver to the Investor a debt obligation in the amount
of 400,000 CAD, repayable (without interest) thirty (30) days after
the expiry of the five (5) year allocation period. The investment is
not refundable after visa issuance (i.e. it is "locked in" for the
five (5) year period once an immigrant visa has been issued).
Citizenship and Immigration
Canada will allocate immigrant investment to approved provincial
funds according to an allocation formula.
Citizenship
and Immigration Canada will subsequently distribute the money among
the funds. After five (5) years, the funds will repay Citizenship
and Immigration Canada, for subsequent repayment to Investors.
TIMING OF
INVESTMENT
AK Immigration Consultants Inc does not recommend that you make your investment until such
time as you know whether your Application for Permanent Residence in
Canada has been approved-in-principle. There is no
procedural/strategic advantage to investing prior to being approved
and, as such, there is little sense to divesting yourself of such a
considerable sum of money for a period of approximately one (1) year
or so while your Application is being processed.
FINANCING
OF INVESTMENT
You may
finance your investment in the Immigrant Investor Program. Measures
are in place at Citizenship and Immigration Canada Headquarters to
support the process; but, it is your responsibility to make the
appropriate arrangements with the financial institution of your
choice.
In the past,
AK IMMIGRATION clients have had satisfactory dealings with various
financial institutions here in Canada whose particulars will be
provided to you by the firm if and when you become a client.
Generally
speaking, with a minimum deposit of 135,000 CAD, an investor can
secure the maximum loan from these financial institutions in order
to complete the required 400,000 CAD investment.
After the five
(5) year obligatory investment period, the initial capital deposit
will have served to pay the interest on the loan. The cost of this
financing option, therefore, represents an amount of 135,000 CAD (as
of July 2001). This offer may vary according to Canadian interest
rate fluctuations and the financial institution concerned
CONTACT US:
AK
Immigration Consultants Inc
#2240- 4871 Shell Road,
RICHMOND, B.C,
CANADA V6X3Z6
Phone: 604-598-8383 Fax:604-598-8386
Email us: info.akconsultants@shaw.ca
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