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Investor — Regulatory Requirements

“investor” means a foreign national who

1. has business experience;
2. has a legally obtained net worth of at least $800,000; and
3. indicates in writing to an officer that they intend to make or have made an investment.

“business experience” in respect of

1. an investor, other than an investor selected by a province, means a minimum of two years of experience consisting of
   1. 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 determination is made in respect of the application;
   2. two one-year periods of experience in the management of at least five full-time job equivalents per year in a business during the period beginning five years before the date of application for a permanent resident visa and ending on the day a determination is made in respect of the application, or
   3. a combination of a one-year period of experience described in subparagraph (i) and a one-year period of experience described in subparagraph (ii);

“full-time job equivalent” means 1,950 hours of paid employment.

“minimum net worth” means

1. in respect of an entrepreneur, other than an entrepreneur selected by a province, $300,000; and
2. in respect of an entrepreneur selected by a province, the minimum net worth required by the laws of the province.

“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.

“net worth”, in respect of an investor, other than an investor selected by a province, means 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;

“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.