What is the Investor Class? It is possible to acquire Canadian permanent residence through the Investor Class application category. The Investor Class is the preferred method of migrating to Canada for wealthy individuals who do not intend to work in a particular occupation in Canada or start a business in Canada upon arrival. Investors enjoy “unconditional” permanent residence unlike immigrants who apply under the Entrepreneur Class. Investors are given permanent residence in return for their agreement to invest money in a government-approved and secure investment fund for a period of five (5) years.
What are the requirements for the Investor Class? An Investor is defined in the Immigration & Refugee Protection Act (IRPA) Regulations as a foreign national who:
(a) has business experience;
(b) has a legally obtained net worth of at least $ $1.6 Million CAD; and
For purposes of this definition, “business experience” means that the Investor must have experience in managing a qualifying business and must also have controlled a qualifying percentage of equity of that business for at least two (2) years in the five (5) year period immediately preceding the date of filing the application for permanent residence. A qualifying business must generally be an active, significant operation which produces a good or service. Passive (holding company) businesses are disfavored. “Business Experience” may also include the management of at least five (5) full-time employees per year in a business for at least two (2) years in the five (5) year period immediately preceding the date of filing the application for permanent residence. Thus, an Investor may qualify if their business experience includes either business ownership or management of employees.
“Net worth” is defined in the Regulations as, “the fair market value of all of the assets of the investor and their spouse or common-law partner minus the fair market value of all of their liabilities”. Thus, an Investor would be able to include in their net worth calculation assets which have been obtained through inheritance. Property valuations can also be included in the net worth calculation.
The provisions of the IRPA permit individual provinces to select Investors under different criteria than those noted above pursuant to “Provincial Nominee Programs”. For an assessment of your credentials under either the federal Investor Program or the various Provincial Nominee Programs, please complete our On-Line Consultation Form.
Is the Investor Class a points-based system? Investor Class applicants are subject to a points-based selection system and must also meet the general selection criteria applicable to all permanent residence applicants including medical and security screening. Investors are awarded 35 points for meeting the regulatory definition of an Investor. They are also awarded points for age, education, linguistic ability, business experience and adaptability. It is anticipated that practically all applicants who meet the definition of Investor will be accepted due to the fact that 35 points are awarded simply for meeting the Investor definition.
What type of funds can I invest in? Investors must invest $800,000 CAD in a government approved investment fund. The funds must be invested for a five (5) year period. In most cases, no interest will be paid to the Investor. The money is secured by the government and returned to the Investor at the end of the five (5) year investment period.
There are numerous “approved” Immigrant Investor funds to chose from. Many of these funds offer applicants a flexible financing option which enables the applicant to put as little as $ 200,000 CAD “down” while the fund managers “loan” the applicant the $ $600,000 balance required to meet the $ $800,000 minimum requirement. Under these financing arrangements, the applicant’s $ $200,000 payment is kept by the fund for loan interest and service charges. No money is returned to the applicant at the end of the five (5) year period. Significantly, however, this financing option enables an Investor applicant and his or her accompanying dependent family members to obtain Canadian permanent residence for a one (1) time payment of $ $200,000 CAD. This is an attractive option to many of our clients.
The Immigration Law Group works closely with several reputable Immigrant Investor funds. We would be happy to discuss all financing options with you and your financial advisor.
What is the application procedure? An Investor applicant is required to file an application for permanent residence with one of Citizenship and Immigration Canada’s nine (9) business application centers worldwide. These processing posts are specially equipped to handle applications from investors.
Investor applicants must carefully document their applications with net worth statements, financial and bank records, evidence of business ownership or management, etc… Spouses or common-law partners and dependent children can be included in the application. Typically, an Investor applicant can expect to be interviewed as part of the application process. Overall, processing times for Investors average between twelve (12) and twenty-four (24) months.
Am I eligible to apply as an Investor? Please take five (5) minutes and complete our On-Line Consultation Form so that we can determine whether you are eligible to apply as an Investor. Our team will complete an assessment of your eligibility normally within forty-eight (48) hours of receiving your confidential consultation form.