PEI Immigration Entrepreneur Category

Net Worth and Liquidity Requirements

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

Immigrant Entrepreneur Investment in a New Business Start

Immigrant entrepreneurs must be prepared to make a minimum business investment of CAD$200,000 to establish a new enterprise. A complete business plan and CAD$100,000 are to be submitted along with their PNP application. Once the business is established this CAD$100,000 will be returned to the applicant. Immigrant Entrepreneurs are also required to place CAD$25,000 in escrow with the Government of PEI as a good faith deposit. This deposit also gets 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.

Evidence of Investment in an Eligible Enterprise

The requirements to be met will be established on a case by case basis, depending upon the nature of the proposed business assets and operations, following approval of the business plan. Please consult a Program Officer.

Escrow Agreement

This Agreement sets out the terms and conditions of the Immigrant Entrepreneur’s application for permanent residency under this category. Immigrant Entrepreneurs must sign, date and submit two copies of the Escrow Agreement with their Prince Edward Island PNP application. Along with this Agreement, the applicant shall also submit to IIDI the sum of One Hundred Thousand Dollars (CAD$100,000), payable to Island Investment Development Inc., to be held by IIDI in escrow on the terms set forth herein, and the Applicant shall also, prior to nomination, provide evidence of the availability of an additional CAD$100,000 available to initiate a new Prince Edward Island based business. The CAD$100,000 plus interest will be returned to the Applicant provided he/she has abided by the terms and conditions of the Escrow Agreement.

Good Faith Deposit

In applying to immigrate to Canada under the PEI Nominee Program, the applicant certifies the intention of settling in PEI. As evidence of good faith, the Province requires that the applicant will place in trust with the Government of PEI a CAD$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