Newfoundland Immigration Entrepreneur Category

The Immigrant Entrepreneur category is intended for prospective immigrants who propose to establish a new business or purchase an expanding existing business and who intend to be self-employed in that business. Applicants who wish to submit an application in this category must meet the following criteria:

Eligible Business

Priority will be given to immigrant entrepreneurs who establish an active business or purchase an expanding existing business in a sector identified in the strategic sector list.

Sectors that are ineligible include:

• retail and wholesale operations;

• financial services;

• business and personal services;

• most professional practices; and,

• real estate and construction businesses.

The establishment of a new business must take into consideration any possible adverse impacts on existing local businesses in the identified sector or related sectors. Where there is a concern over eligibility, the immigrant entrepreneur is encouraged to contact the Department of Innovation, Trade and Rural Development to discuss his/her concerns.

Net Worth and Liquidity Requirements

Immigrant entrepreneurs must have a minimum net worth of CAD$750,000, including minimum liquid assets of CAD$350,000. Liquid assets include cash, demand deposits with a financial institution, term deposits, tax shelters convertible to cash, and readily marketable investments including publicly traded stocks and bonds.

Investment Equity Requirement

Immigrant entrepreneurs must be prepared to make a minimum business investment of CAD$200,000 in equity to establish an eligible new enterprise or purchase an eligible existing business within the northeast Avalon region (the greater St. John's area) or CAD$100,000 in equity outside the northeast Avalon region.

Required Business Experience

Immigrant entrepreneurs must have a minimum of five years of senior management or direct entrepreneurial experience in a business similar to the one proposed. The applicant will be required to submit a r?um?or CV (curriculum vitae), letters of recommendation, financial statements and other documents in support of his/her demonstrated level of experience.

Good Faith Performance Deposit

In applying to immigrate to Canada under the Newfoundland and Labrador Provincial Nominee Program, the applicant must certify his/her intention of settling and establishing or purchasing a business in Newfoundland and Labrador. To guarantee this intention, the applicant is required to place CAD$25,000 in trust with the Government of Newfoundland and Labrador. This deposit will be fully refundable, with interest, one year after landing, provided that the immigrant entrepreneur can demonstrate to the satisfaction of the province that:

1. the required minimum investment was indeed made;

2. the business is fully operational;

3. the immigrant entrepreneur and his/her family maintain a residence in Newfoundland and Labrador; and,

4. the immigrant entrepreneur is self-employed in the business.

Evidence that a business is fully operational may include an examination of the books and records of the company, examination of independently prepared audited financial statements, tax returns, payroll, and regular on-site visits. Evidence that a residence is maintained in the province may include a pre-arranged visit to the residence, copies of household bills, property tax receipts, and registration of children at local schools and day care centres.

Where the immigrant entrepreneur is unable to establish that the criteria set out above in (1), (2), (3) and (4) have been met to the satisfaction of the province, the deposit of $25,000 will be forfeited. The Government of Newfoundland and Labrador may grant an additional reasonable period of time, not exceeding six months, to fulfill the requirements of having a fully operational business if bona-fide efforts and substantial progress have been made toward this goal within one year. The province must receive the performance deposit upon application or, in any case, prior to the issuance of the Nomination Certificate. If an immigrant entrepreneur is not successful in obtaining permanent residence status, the performance deposit will be refunded, without interest.

Exploratory Visit

Immigrant entrepreneurs are required to make an initial exploratory visit to Newfoundland and Labrador. Following a pre-assessment of the immigrant application, the province will issue an invitation for the exploratory visit (at the entrepreneur's own expense). During this time, the immigrant entrepreneur will meet with a Program Officer for an official interview. The interview process will assist the Program Officer with the assessment of the nomination.

During the visit the immigrant entrepreneur is encouraged to research his/her proposed business and meet with appropriate industry associations, business owners and financial institutions, as well as meet with relevant cultural or community groups to assess adaptability and successful settlement prospects in Newfoundland and Labrador.

During the exploratory visit, the prospective entrepreneur will be informed that if successful in obtaining a nomination/visa, they will be expected to land in Newfoundland and Labrador and to meet with department officials within fourteen days of landing. Once the visa has been issued, department officials will contact the Immigrant Entrepreneur requesting details of the travel arrangements to Newfoundland in order to select a date for the post landing meeting (photocopies of travel documents will be requested e.g.: airline tickets, hotels, etc.)

The Department of Innovation, Trade & Rural Development may waive the requirement for an exploratory visit in extenuating circumstances where the visit is not feasible, provided the objectives established for permanent residency in Newfoundland and Labrador are not compromised.

Business Plan

Immigrant entrepreneurs are required to prepare and submit a business plan outlining how the new enterprise is to be successfully established. Applicants purchasing an existing business must submit a business plan outlining the future continuing success/improvement of operations under his/her ownership and management.

The business plan, including financial projections, will allow the province to assess the feasibility of the business or the continued success of the existing business and the impact of the business operations on the local economy. It will also allow for an evaluation of potential earnings from self-employment that will provide a reasonable living for the immigrant entrepreneur and his/her family in establishing in Newfoundland and Labrador.

The business plan submitted by the immigrant must be provided in a general format specified by the province. It must outline the proposed financial investment and the applicant's active management role in the new or existing business. It must also demonstrate that, as a result of establishing or purchasing the business, there will be:

• capital investment in a new or existing business;

• direct job creation in the province, in addition to any jobs to be performed in the proposed business by family members;

• a positive impact on the provincial economy; and,

• improved market access for the province's good and services.

A full disclosure of the applicant's business assets, debts and financial affairs will be required in considering Nominee applications. A letter of recommendation from the applicant's banking institution will assist in the review of the business proposal.

The business plan will be assessed by the Department of Innovation, Trade and Rural Development in consultation with other government departments/agencies as appropriate (e.g. the Department of Fisheries and Aquaculture if the business proposal is in the aquaculture industry).

Immigrant entrepreneurs who want to establish a new company must also abide by the respective federal Corporations Acts and provincial Corporations Acts and meet the definition of permanent establishment as defined by the federal Income Tax Act. For further information on the Income Tax Act please see the Canada Revenue Agency website. Immigrant entrepreneurs requiring further assistance with the development of a business plan or exploration of business opportunities, can obtain further assistance through the Canada-Newfoundland and Labrador Business Service Center.

Evidence of Investment

Business investment refers to investment required to finance the assets and operations of a new business or to purchase the assets (and debts) of an existing business. The requirements to be met (evidence) will be established on a case- by- case basis following the Department's approval of the submitted business plan.