The Prince Edward Island Business Impact Category issues permanent residence to entrepreneurs who have established a business in the province.
The Work Permit Stream operates on a two-stage basis:
- Candidates come to Canada on a temporary work permit and establish their business.
- Candidates are nominated for permanent residence once their business is established and the terms of an agreement met.
Previously, the province operated direct permanent residence business streams, but these were closed in September 2018 over immigration fraud concerns.
P.E.I. Business Immigration Program Eligibility
Applicants can pursue investment in a P.E.I. company on their own or with the help of an approved Island Agent.
Island Agents serve to connect immigration applicants with P.E.I. businesses. Once an immigration applicant has chosen a business in which to purchase or invest, the applicant and the business must jointly submit a business plan to the P.E.I. Office of Immigration through an Island Agent.
The business plan must include:
- A company overview
- A description of products and services offered
- A description of the industry in which the business will operate
- A description of the competitive landscape in which the business will operate
- A marketing plan
- An operational plan
- A description of the company’s management team and staffing
- A description of applicant’s role in the business
- Historical financial statements
- If requested, projected financial statements prepared by a qualified accountant
All businesses that were contacted by an applicant without the help of an Island Agent must also submit the following before submitting a business plan:
- A completed Consent to Pursue Investment Form
- An up to date, year-end comparative financial statement, including supporting notes
P.E.I. Business Immigration Program: Financial Requirements
All business immigration applicants to P.E.I. must:
- Invest at least $150,000 Canadian dollars in a P.E.I. company.
- Control at least 1/3 of the company’s equity OR make an equity investment in the company of at least $1,000,000.
- Actively and consistently manage the business from within P.E.I.
- Not include a redemption option in the terms of their investment.
Eligibility Criteria
Businesses must meet the following criteria:
- Is a for-profit corporation incorporated under the Companies Act of Prince Edward Island or the Canada Business Corporations Act.
- Operate for the purpose of earning profits from active income through providing goods and/or services.
- Be in good standing on all debts and obligations.
- Have headquarters in Prince Edward Island.
- Maintain a “permanent establishment” in P.E.I. as defined under the Income Tax Act by regulation 400 (2).
- Be liable to pay income tax on taxable income earned as a result of being a “permanent establishment” in Prince Edward Island.
- Gave good potential for sustained profits in the future.
- Have assets with a value of at least $150,000. These assets must be actively used for the expansion of the business.
- Have the potential to create significant economic benefits for Prince Edward Island by contributing to one or more of the following industries.
- Value-added manufacturing, processing or primary resource activities.
- Exports of goods or services.
- Destination tourism.
- Tourism attractions.
- Fixed roof accommodations.
- Research and development.
- Technology commercialization.
- Any industry in an underserved local or regional market.
- Retail and restaurant investment.
If the business is an Inn or Boutique Hotel, it must:
- Not be a startup
- Have at least 5 rental units, with each unit having at least a three-piece bath.
- Have revenues of at least $100,000 in the last operating year. These revenues must be provable by financial statements or a tax return.
- Have operating expenses of at least $75,000 in the last operating year. These expenses must be provable by financial statements or a tax return.
If the business is in the construction or renovation sector, the applicant must:
- Employ at least 3 arms-length staff members full time for at least 6 months of the year.
- Conduct business in a location that is not his or her personal residence.
- Possess sufficient education or at least 5 years of experience in the proposed business.
- Meet all terms and conditions of any applicable escrow agreement.
If a licence or credential is required in order for the business to operate, the applicant must show in his or her business plan that all relevant licenses and credentials have been obtained.
All businesses participating in the P.E.I. business immigration program will be required to report to the P.E.I. government in order to ensure that the business is following all relevant rules and regulations. These reports will only be mandatory over the first five years of the business’ operation.
Invalid Businesses
The following businesses CANNOT be used for business immigration applications to P.E.I.:
- Bed and breakfasts
- Hobby farms
- Home-based businesses
- Pay day loan businesses
- Cheque cashing businesses
- Money changing businesses
- Cash machine businesses
- Pawnbrokers
- Businesses involving the sale of used goods except for the following businesses which are still eligible for business immigration.
- Companies involved in the sale of collectibles
- Repair companies
- Refurbishing companies
- Recycling companies
- Any other businesses that provides added value for used goods
- Most real estate development businesses. A real estate business will still be eligible for the program, however, if it provides significant economic benefit to the P.E.I. economy.
- Real estate, insurance or business brokerage
- Businesses with the sole purpose of gaining access to immigrant investment
- Professional practices
- Financial services
- Consulting services
- An entity that cannot issue shares
- Any other type of business that could bring the the Government of Prince Edward Island into disrepute.
- Any business that has received any immigration related investments over the past 48 months.
- Any business that is already in contact with an immigrant investor.
- Any company that is associated with another company that is currently involved in a P.E.I. business immigration program.
Further excluded businesses:
Only businesses that sell goods and services to the general public are eligible for the program. Thus, the following kinds of businesses are NOT eligible for P.E.I. business immigration:
- Investment companies
- Real estate rental companies
- Loan companies
- Non-active investment companies
Start-ups and Newly-Incorporated Companies
Companies that are created from the assets of an existing P.E.I. business are eligible as long as:
- A P.E.I. business provides $150,000 in assets to the new company.
- The new company is a stand-alone business that does not rely on the original business.
- The P.E.I. business owner has sufficient expertise in the new company’s area of operation.
Dependants
The following dependants can be included in all P.E.I. business immigration applications.
- Spouse
- Common Law Partner
- Dependent children who are:
- Younger than 19 and do not have a spouse or common law partner OR,
- Financially dependant on their parents due to physical or mental illness
Interested employers: Kindly contact us here to receive further information.
Interested candidates: Find out whether you qualify to Canada by completing our free online evaluation. We will provide you with our evaluation within 1-2 business days.
