Entrepreneurs: Definitions

In order to qualify, you must first meet the definition of an entrepreneur. If your application is accepted you must also comply with the conditions for an entrepreneur after arriving in Canada.

• Definitions
• Conditions

Definitions

The following terms are defined in the regulations:

• Entrepreneur
• Business experience
• Full-time equivalent
• Minimum net worth
• Net assets
• Net income
• Net worth
• Percentage of equity
• Qualifying business
• Qualifying Canadian business

Entrepreneur means a foreign national who

1. has business experience;
2. has a legally obtained minimum net worth of $300,000; and
3. provides a written statement to an officer that they intend and will be able to meet the conditions listed at the bottom of this page

Business experience in respect of an entrepreneur, means a minimum of two years of experience consisting of two one-year periods of experience in the management of a qualifying business and the control of a percentage of equity of the qualifying business during the period beginning five years before the date of application for a permanent resident visa and ending on the day a decision is made on the application.

Full-time job equivalent means 1,950 hours of paid employment.

Minimum net worth means in respect of an entrepreneur, $300,000.

Net assets, in respect of a qualifying business or a qualifying Canadian business, means the assets of the business, minus the liabilities of the business, plus shareholder loans made to the business by the foreign national who is making or has made an application for a permanent resident visa and their spouse or common-law partner.

Net income, in respect of a qualifying business or a qualifying Canadian business, means the after tax profit or loss of the business plus remuneration by the business to the foreign national who is making or has made an application for a permanent resident visa and their spouse or common-law partner’s income.

Net worth, in respect of an entrepreneur, means the fair market value of all of the assets of the entrepreneur and their spouse or common-law partner minus the fair market value of all of their liabilities.

Percentage of equity means

1. in respect of a sole proprietorship, 100 per cent of the equity of the sole proprietorship controlled by a foreign national or their spouse or common-law partner;
2. in respect of a corporation, the percentage of the issued and outstanding voting shares of the capital stock of the corporation controlled by a foreign national or their spouse or common-law partner; and
3. in respect of a partnership or joint venture, the percentage of the profit or loss of the partnership or joint venture to which a foreign national or their spouse or common-law partner is entitled.

Qualifying business means a business—other than a business operated primarily for the purpose of deriving investment income such as interest, dividends or capital gains—for which, during the year under consideration, there is documentary evidence of any two of the following:

1. the percentage of equity multiplied by the number of full-time job equivalents is equal to or greater than two full-time job equivalents per year;
2. the percentage of equity multiplied by the total annual sales is equal to or greater than $500,000;
3. the percentage of equity multiplied by the net income in the year is equal to or greater than $50,000; and
4. the percentage of equity multiplied by the net assets at the end of the year is equal to or greater than $125,000.

Qualifying Canadian business means a business operated in Canada by an entrepreneur—other than a business operated primarily for the purpose of deriving investment income, such as interest, dividends or capital gains—for which there is in any year within the period of three years after the day the entrepreneur becomes a permanent resident documentary evidence of any two of the following:

1. the percentage of equity multiplied by the number of full-time job equivalents is equal to or greater than two full-time job equivalents per year;
2. the percentage of equity multiplied by the total annual sales is equal to or greater than $250,000;
3. the percentage of equity multiplied by the net income in the year is equal to or greater than $25,000; and
4. the percentage of equity multiplied by the net assets at the end of the year is equal to or greater than $125,000.

Conditions

Entrepreneurs must comply with the following conditions:

• Permanent residence
• Conditions — par. 9(1)(d) of the Act
• Applicable time
• Evidence of compliance
• Report and evidence of efforts to comply
• Family members

Permanent residence
An entrepreneur who becomes a permanent resident must meet the following conditions:

1. the entrepreneur must control a percentage of the equity of a qualifying Canadian business equal to or greater than 33 1/3 per cent;
2. the entrepreneur must provide active and on-going management of the qualifying Canadian business; and
3. the entrepreneur must create at least one incremental full-time job equivalent in the qualifying Canadian business for Canadian citizens or permanent residents, other than the entrepreneur and their family members.

Conditions
Note: Quebec has its own business immigration program, and has set different conditions that entrepreneurs must meet. The conditions listed above do not apply to entrepreneurs selected by Quebec. Visit the Quebec Immigration web site for more information on immigrating to Quebec. You will find a link in the Related Links section on the bottom of this page.

Applicable time
The entrepreneur must meet the conditions for a period of at least one year within the period of three years after the day on which the entrepreneur becomes a permanent resident.

Evidence of compliance
An entrepreneur who becomes a permanent resident must provide to an officer evidence of compliance with the conditions within the period of three years after the day on which the entrepreneur becomes a permanent resident.

Report and evidence of efforts to comply
An entrepreneur must provide to an officer:

1. not later than six months after the day on which the entrepreneur becomes a permanent resident, their residential address and telephone number; and
2. during the period beginning 18 months after and ending 24 months after the day on which the entrepreneur becomes a permanent resident, evidence of their efforts to comply with the conditions.

Family members
The family members of an entrepreneur are subject to the condition that the entrepreneur meets the conditions set out in this section.

---

Related links

• Immigrating to Quebec (ministère de l’Immigration et des Communautés culturelles)