Criteria for the Immigrant Entrepreneur Category

The Immigrant Entrepreneur Category is intended for prospective immigrants who propose to establish a new business or who propose to purchase all or part of an existing business that has supportable prospects for expansion in Newfoundland and Labrador and who intend to be self-employed in that business. Immigrant entrepreneurs who wish to apply in this category must meet the following criteria:

Pre-Assessment Phase - All immigrant entrepreneurs must submit the required Pre-Assessment documents BEFORE submitting a Provincial Nominee Application. This Pre-Assessment, accompanied by the immigrant entrepreneur’s business plan, is required so that the Program Officers can determine whether or not the business plan is eligible and/or qualifies under the Provincial Nominee Program. Once the immigrant entrepreneur has received official approval of their proposed business plan, he/she may then proceed to submit the Provincial Nominee Application.

Criteria 1 -  Eligible Business Activity

An active business refers to a business that generates revenues by selling goods and/or services at arm's length to third parties. Priority will be given to immigrant entrepreneurs who intend to establish an active business or purchase all or part of an existing business that has supportable prospects for expansion in a sector identified by the Strategic Sector List as identified in the Application and Information Guide and at nlpnp.ca.

If professional credentials or licences to practice are required to establish or operate the business in Newfoundland and Labrador, 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 required for start-up.

Priority will be given to immigrant entrepreneurs who establish an active business or purchase an expanding existing business in a sector identified in the strategic sector list.

The establishment of a new business must take into consideration any possible adverse impacts on existing local businesses in the identified sector or related sectors.

Where there is a concern over eligibility, the immigrant entrepreneur is encouraged to contact the Office of Immigration and Multiculturalism, Department of Human Resources, Labour and Employment to discuss his/her concerns.

Ineligible Business Activity

Business sectors deemed ineligible include: investment holding companies, real estate rental and construction operations, financial services, loan/investment companies and other non-active investments, business and personal services, retail, wholesale and distribution operations, and most professional practices.

Sectors that are ineligible include:

• retail and wholesale operations;
• financial services;
• business and personal services;
• most professional practices; and,
• real estate and construction businesses.

Where there is doubt about the eligibility of a proposed business to be established, the immigrant entrepreneur should contact the Office of Immigration and Multiculturalism, Department of Human Resources, Labour and Employment and discuss the business details with a Program Officer in advance.

The Department will take into consideration any potential adverse impacts that the proposed new business being established may have on existing businesses in the province.

 

Criteria 2 -  Required Business Experience

Immigrant entrepreneurs must have a minimum of five (5) years of senior management or direct entrepreneurial experience in a business similar to the one proposed. The immigrant entrepreneur will be required to submit a resume or CV (curriculum vitae), letters of recommendation, financial statements and other documents to support his/her experience.

 

Criteria 3 -  Net Worth and Liquidity Requirements

Immigrant entrepreneurs must have a minimum net worth of CDN$450,000, including minimum liquid assets of CDN$350,000. Liquid assets include, for example: cash, demand deposits with a financial institution, term deposits, tax shelters convertible to cash, and readily marketable investments including publicly traded stocks and bonds.

 

Criteria 4 -  Immigrant Entrepreneur Investment in a New or Expanding Existing Business

Immigrant entrepreneurs must be prepared to make a minimum direct business investment of CDN$200,000 in equity to establish an eligible new enterprise or purchase all or part of an eligible existing business in Newfoundland and Labrador. To meet the CDN$200,000 investment requirement the immigrant entrepreneur must provide the following:

4.1 The immigrant entrepreneur's Provincial Nominee Application;

4.2 Two original, dated, and signed Performance Agreements along with a deposit of CDN$100,000. This deposit will be held in escrow and will be returned to the Applicant provided that he/she has established the proposed business and has abided by the terms and conditions of the Performance Agreement (see Criteria 6 and Form PNP-NL-08);

4.3 Prior to nomination by the province, the immigrant entrepreneur will be required to provide evidence that an additional CDN$100,000 is available to establish a new Newfoundland and Labrador based business, or purchase all or part of an existing business (see Criteria 5).

4.4 Provide evidence, to the satisfaction of the Department, that the immigrant entrepreneur has a further CDN$150,000 (see Criteria 3) in liquid assets.

 

Criteria 5 -  Evidence of Investment in a New Business or Purchase of all or part of an Expanding Existing Business

Evidence of a business investment refers to an investment which is required to finance the assets and operations of a new business OR to purchase all or part of the assets (and debts) of an existing business. Evidence of a business investment may include such elements as:

5.1 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 in Newfoundland and Labrador such as a chartered bank, trust company, credit union or brokerage.

5.2 Inventories and accounts receivable associated with the business start;

5.3 Licences, franchises, trade names and other intangible assets necessary to establish/operate the business and purchased from third parties, at arm's length;

5.4 Machinery, fixtures, tools and other equipment, excluding passenger vehicles;

5.5 Real estate (excluding residential real estate, recreational property, unserviced land for future development or real estate to be leased primarily to third parties, whether for business or residential uses);

5.6 Leasehold improvements to leased business premises.


The Evidence of Investment requirement is a reference to those actions and transactions, such as those listed above, which ultimately result in the establishment of the proposed business as referred to in the business plan. The Department reserves the right to conduct due diligence to ensure that there is sufficient evidence of investment.

Criteria 6 -  Performance Agreement

(View pdf)

The Performance Agreement sets out the terms and conditions of the immigrant entrepreneur's investment required under this category. Immigrant entrepreneurs must sign, date and submit two originals of the Performance Agreement with the Provincial Nominee Application.

Along with the Application and Performance Agreements, the applicant must also submit the sum of One Hundred Thousand Canadian Dollars (CDN$100,000 ), payable to the: Provincial Nominee Program Newfoundland and Labrador Trust Account, which will be held in escrow (see PNP-NL-08).

The CDN$100,000, plus accrued interest (interest received will be at a rate equal to the rate earned on the Provincial Nominee Program-Newfoundland and Labrador Trust Account, less any bank charges incurred by INTRD) will be returned to the applicant if, for a period of twelve months following the date of issuance of the immigrant entrepreneur's visa for permanent residence in Canada, he/she has abided by the terms and conditions of the Performance Agreement.

Additional Terms and Conditions
The Performance Agreement will also contain terms and conditions that will require the immigrant entrepreneur to demonstrate, to the satisfaction of the Department that:

6.1 The proposed business is active and fully operational and generates revenues by selling goods and/or services at arm's length to unrelated third parties. The Department reserves the right to determine evidence of investment, as outlined in Criteria 5 above, through, but not necessarily limited to:
    6.1.1 a site visit to the business premises;
    6.1.2 an examination of the books and records of the enterprise;
    6.1.3 an examination of financial statements prepared/reviewed by an independent chartered accountant or certified general accountant;
    6.1.4 an examination of tax returns to the Canada Customs and Revenue Agency or the Provincial Treasury.

6.2 The immigrant entrepreneur and his/her family maintain a residence in Newfoundland and Labrador. The Department reserves the right to determine evidence of residence through, but not necessarily limited to:
    6.2.1 a prearranged visit to the residence;
    6.2.2 confirmation of the registered mortgage or title deed to land and dwelling;
    6.2.3 copies of household bills, rental receipts, and property tax records;
    6.2.4 confirmation of registration of any children at a local school or daycare facilities;
    6.2.6 community corroboration.

An applicant who cannot demonstrate, to the satisfaction of the province, that all terms and conditions of the Performance Agreement (see PNP-NL-08) have been fulfilled within the designated time allowed, will forfeit his/her right to reimbursement of these escrow funds.

 

Criteria 7 - Exploratory Visit

Immigrant entrepreneurs are required, at his/her own expense, to make at least one exploratory visit to Newfoundland and Labrador. The exploratory visit and interview will not be waived. The Department encourages all prospective immigrant entrepreneurs to do as much in-depth research on Newfoundland and Labrador, the business community, and the investment prospects prior to considering a visit to the province. This knowledge will be taken into consideration when meeting with Department officials. In some instances the immigrant entrepreneur may require a Letter of Invitation to his/her application for a visitor's visa. This Letter of Invitation from the Department will be provided if the immigrant entrepreneur has met the following conditions:

7.1 the immigrant entrepreneur has submitted the Pre-Assessment documentation;
7.2 the immigrant entrepreneur has provided a business plan which, in the opinion of the Department, has provided sufficient detail to determine that the business plan has merit.

If a letter of invitation is issued for the visit to the province, the immigrant entrepreneur must submit an application for a visitor's visa to the appropriate Canadian visa office. Upon submitting his/her visa application, the immigrant entrepreneur must:

7.3 notify the Department of the proposed travel details;
7.4 advise the Department if he/she requires an interpreter or confirms that he/she will be accompanied by his/her own interpreter;
7.5 advise the Department of his/her itinerary while in the province (providing company names, contacts, etc.);
7.6 arrange an official interview with the Program Officer to be held during the visit.


During the visit, the immigrant entrepreneur is encouraged to gather additional research on his/her proposed business plan and to meet with appropriate business owners, industry associations, financial institutions, real estate agents, and other relevant cultural or community groups to assess adaptability and successful business and settlement prospects in Newfoundland and Labrador.

The immigrant entrepreneur must meet with a Program Officer for an official interview. The interview process will assist the Program Officer in determining the immigrant entrepreneur's eligibility.

Immigrant entrepreneurs who are unable to successfully obtain a visitor's visa will not be permitted to submit a provincial nominee application.

 

Criteria 8 - Business Plan

Business PlanImmigrant entrepreneurs are required to prepare and submit a detailed business plan outlining how the new enterprise is to be successfully established. Applicants purchasing all or part of an existing business must submit a detailed business plan outlining the continued success/improvement of operations under his/her ownership and management. Business plans submitted with the Pre-Assessment must have, in the opinion of the Department, sufficient detail to make a determination of eligibility and suitability. A detailed business plan, if not provided with the Pre-Assessment, must be submitted following the exploratory visit and, in either case, must be received by the Program Officer in order to complete the analysis and determine the immigrant entrepreneur's eligibility to submit an application to the Provincial Nominee Program.

The business plan, including pro-forma financial statements, will allow the province to assess the feasibility of the business or the continued success/improvement of the existing business and the impact of the business operations on the local economy. It will also allow for an evaluation of potential earnings from self employment that will provide a reasonable living for the immigrant entrepreneur and his/her family in Newfoundland and Labrador.

The business plan submitted by the immigrant entrepreneur must be provided in a general format specified by the Province (see PNP-NL-09). The plan must outline the proposed financial investment and the applicant's active management role in the new or existing business. It must also demonstrate that, as a result of establishing or purchasing all or part of the business there will be:

8.1 capital investment in a new or existing business;
8.2 direct job creation in the Province, in addition to any jobs to be performed in the proposed business by family members;
8.3 a positive impact on the provincial economy; and,
8.4 improved market access for the Province's goods and services.


A full disclosure of the applicant's business assets, debts and financial affairs will be required in considering an immigrant entrepreneur's application. A letter of recommendation from the applicant's banking institution will assist in the review of the business proposal.

The business plan will be assessed by the Department in consultation with other government departments/agencies as appropriate (e.g., the Department of Fisheries and Aquaculture if the business proposal is in the aquaculture industry).

Immigrant entrepreneurs who want to establish a new company must also abide by the respective federal (see: www.corporationscanada.ic.gc.ca) and provincial Corporations Acts (see: www.gov.nl.ca/hoa/statutes/c36.htm) and meet the definition of permanent establishment as defined by the federal Income Tax Act. For further information on the Income Tax Act please see www.ccra-adrc.gc.ca

Immigrant entrepreneurs requiring further assistance with the development of a business plan or exploration of business opportunities, can obtain assistance from:
the Canada Newfoundland and Labrador Business Service Center - cbsc.org/nl OR the Business Development Bank of Canada - www.bdc.ca

Apply for Pre-Assessment

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 provincial nominee or otherwise.

IMMIGRANT ENTREPRENEUR CATEGORY

In order to submit an application to the Provincial Nominee Program, immigrant entrepreneurs are first required to go through the Pre-Assessment Phase. This Phase provides information that allows the Program Officer to determine if the immigrant entrepreneur is a suitable candidate for the Provincial Nominee Program and allows an opportunity to review the business plan and determine if the proposed business is eligible and/or qualifies under the Provincial Nominee Program. Immigrant entrepreneurs whose candidacy or business plans are deemed unacceptable will not qualify for provincial nomination.

PHASE I - HOW TO APPLY FOR A PRE-ASSESSMENT

Step 1 - Submit the Pre-Assessment Documents
1. Self Assessment Form (PNP NL 01E)
2. Pre Assessment Form (PNP NL 02)
3. Information Release Form (PNP NL 06)
4. Proof of Required Business experience (such as: resume/Curriculum Vitae, Financial Statements, and other documents in support of business experience and/or ownership)
5. Detailed Business Plan.


Step 2 - Pre-Assessment - Review
If your Pre-Assessment documents have received a preliminary review by the Program Officer and they are found to be generally acceptable, you will then be issued a letter of invitation to conduct an exploratory visit to Newfoundland and Labrador.

Step 3 - Exploratory Visit (See Criteria 7 for details)
During your visit you will be required to meet with a Program Officer who will conduct an official interview.

Step 4 - Pre-Assessment - Approval
When the Program Officer has determined that the immigrant entrepreneur meets all the requirements under the Pre-Assessment criteria, he/she will receive official notification of approval and will be invited to submit an application under the Immigrant Entrepreneur Category.
Pre-Assessment - Rejection -If the Program Officer has determined that the immigrant entrepreneur does not meet all the requirements under the Pre-Assessment criteria he/she will receive official notification. This determination indicates that the immigrant entrepreneur is not eligible to make an application to the Immigrant Entrepreneur Category.


IMMIGRANT ENTREPRENEUR CATEGORY

If you have completed the Steps outlined in the Pre-Assessment Phase and have received official notification of approval to proceed to submit an application for provincial nomination in the Immigrant Entrepreneur Category, you can now proceed to Phase II:

PHASE II - HOW TO APPLY FOR THE ENTREPRENEUR CATEGORY

Step 1 - Submit the Application Documents

(You may be asked to submit additional information as required)
1. CDN$2000 processing fee made payable to: Newfoundland Exchequer;
2. Newfoundland & Labrador Supplementary Information Form (PNP NL 05)
Complete only one for the entire family - however, check that the appropriate questions are answered in full and that both the principal applicant and the spouse sign.
3. Business Net Worth Form (PNP NL 07B)
4. Performance Agreement (PNP NL 08)
5. CAD$100,000 Investment Deposit made payable to:
Provincial Nominee Program Newfoundland and Labrador Trust Account
6. Two originals - dated and signed - of the Performance Agreement (one original - dated and signed - will be returned once signed by the Department)
7. Schedule 1 Background/Declaration Form (IMM 0008 Schedule 1)
8. Application for Permanent Residence Form (IMM 0008 Generic)
9. Schedule 4 Economic Classes Provincial Nominees (IMM 0008 Schedule 4)
10. Additional Family Information Form (IMM 5406)
11. Supporting documents (See Document Checklist)


Step 2 - Sending the Application Documents

Place the completed application forms, together with the appropriate fees, deposits, and documents in a sealed envelope and forward by a secure form of transmission to:

Office of Immigration and Multiculturalism,
Department of Human Resources, Labour and Employment
Provincial Nominee Program
P.O. Box 8700
St. John's, NL
A1B 4J6
Canada

Notes:
Fees and deposits can also be conducted by bank-to-bank transfer or other secure methods of transmission.

All supporting financial information must be presented in Canadian or US dollars.

 

 

SUGGESTED OUTLINE FOR BUSINESS PLANS

I Describe your business
1. Production or service-delivery efficiencies
2. Personnel
3. Geographic location
4. Facilities
5. Own or Rent:
Size (square feet/m2)
Physical state of the property (i.e. modern, requires upgrades) Significant equipment


II Market Analysis

1. Industry Description and Outlook
1.1 Description of your primary industry
1.2 Size of the industry: Historical, Current, Projected growth, Five and ten year outlook
1.3 Industry characteristics and trends: Historical, Current, Future
1.4 Major customer groups
2. Target Markets
2.1 Size of the primary target market
2.2 Market penetration (indicate the extent to which you anticipate penetrating your market, and demonstrate why you feel that level of penetration is achievable based on your market research)
2.2.1 Market share
2.2.2 Existing customers
2.2.3 Potential customers
2.3 Pricing and gross margin targets
2.4 Methods by which specific members of your target market can be identified
2.5 Media through which you can communicate with specific members of your target market
2.6 Purchasing cycle of potential customers
2.7 Key trends and anticipated changes within your primary target markets
2.8 Secondary target markets and key attributes.
2.9 Market Test Results
2.10 Lead Times (time between customer order placement and product or service delivery)
2.11 Competition
2.11.1 Identification (by market segment and product line or service):
2.11.2 Their strengths (competitive advantages):
2.11.3 Their weaknesses (competitive disadvantages):
2.12 Importance of your target market to your competition
2.13 Barriers to entry into your market
2.14 Regulatory Restrictions: Customer or governmental regulatory requirements (domestic and international) including anticipated changes
2.15 Marketing and Sales Activities (describe the marketing and sales activities that will enable you to meet the forecasts outlined in your pro-forma financial statements)
2.16 Products and Services (outline the unique ability of your company's products or services to satisfy the needs of the marketplace)


III Management and Ownership

1. Company Structure
1.1 Organizational chart
1.2 Narrative description of the chart
1.3 Key Management and Operating Personnel (present full resumes in an appendix)
1.3.1 Unique skills and experience that add to your company's distinctive competencies
1.3.2 Planned Additions to the Current Management Team
1.4 Legal Structure
1.4.1 Owners/Names/Percentage of Ownership/Form of Ownership/
Outstanding Equity Equivalents/Options/Warrants/Convertible Debt/Board of Directors (Names, Positions, Extend of Involvement with the Company)


IV Long-Range Financial Strategies (i.e., liquidating investors' positions)

1.1 Going public
1.2 Leveraged buyout
1.3 Acquisition by another company
1.4 Debt service levels and timing
1.5 Liquidation of the venture
V Funds Required and Their Use
1.1 Current Funding Requirements
1.2 Funding Requirements Over the Next Five Years
1.3 Use of Funds
VI Financial Data
1.1 Historical Financial Data (past three to five years, if applicable)
1.2 Use of external accounting firms
1.3 Prospective Financial Data (next five years)
VII Appendices and Exhibits
1.1 Resumes of Key Managers
1.2 Professional References
1.3 Market Studies
1.4 Pertinent Published Information (i.e., on your products or services)
1.5 Magazine articles
1.6 Book references
1.7 Patents