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Immigration and Refugee Protection Regulations (SOR/2002-227)

Regulations are current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART 6Economic Classes (continued)

DIVISION 2Business Immigrants (continued)

Start-up Business Class (continued)

Marginal note:Form of commitment

  •  (1) A commitment must be in a written or electronic form that is acceptable to the Minister and must be provided by a person who has the authority to bind the designated entity.

  • Marginal note:No fee for commitment

    (2) A commitment does not respect these Regulations if the entity that made it charges a fee to review and assess the business proposal or to assess the business.

  • Marginal note:Multiple applicants

    (3) If there is more than one applicant in respect of a commitment, the commitment must

    • (a) include information on each applicant; and

    • (b) identify those applicants that the entity making the commitment considers essential to the business.

  • Marginal note:Conditional commitment

    (4) If there is more than one applicant in respect of a commitment, the commitment may be conditional on the issuance of a permanent resident visa to one or more of those applicants.

  • SOR/2018-72, s. 3

Marginal note:Minimum investment

  •  (1) The Minister must establish the minimum total amount that the designated entities involved in the commitment must invest by buying shares or other forms of equity in the applicant’s business.

  • Marginal note:Types of entities

    (2) The Minister may establish different minimum investment amounts based on whether the commitment was made by a business incubator, an angel investor group or a venture capital fund and, for commitments involving more than one type of entity, may specify different minimum investment amounts for commitments involving different combinations of entity types.

  • Marginal note:Factors

    (3) The Minister must establish the minimum investment amount on the basis of the following factors:

    • (a) the number or projected number of start-up business class applicants and designated entities;

    • (b) the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal;

    • (c) the amount of investment received per year by start-up business class applicants from designated entities as part of a commitment;

    • (d) the number, type and industry sector of businesses started in Canada by approved start-up business class applicants per year and the average investment needs of start-up businesses of those types in those industry sectors;

    • (e) the average amount of investment and number of investments made in start-up companies in Canada per year;

    • (f) the level of investment usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and

    • (g) industry standards and best practices, as determined in consultation with organizations referred to in section 98.02, designated entities or other relevant stakeholders.

  • Marginal note:Public notice

    (4) The Minister must publish the amounts established under subsection (1) on the Department’s website.

  • SOR/2018-72, s. 3

Marginal note:Qualifying business

  •  (1) For the purposes of paragraph 98.01(2)(d), a qualifying business with respect to an applicant is one

    • (a) in which the applicant provides active and ongoing management from within Canada;

    • (b) for which an essential part of its operations is conducted in Canada;

    • (c) that is incorporated in Canada; and

    • (d) that has an ownership structure that complies with the percentages established under subsection (3).

  • Marginal note:Exception — intention

    (2) A business that fails to meet one or more of the requirements of paragraphs (1)(a) to (c) is nevertheless a qualifying business if the applicant intends to have it meet those requirements after they have been issued a permanent resident visa.

  • Marginal note:Ownership structure

    (3) The Minister must establish

    • (a) the minimum percentage of voting rights that are attached to all the outstanding shares of the corporation that must be held by the applicant; and

    • (b) the maximum percentage of the total amount of the voting rights attached to all the outstanding shares of the corporation that may be held by persons or entities, other than qualified participants.

  • Marginal note:Qualified participant

    (4) For the purpose of paragraph (3)(b), a qualified participant is

    • (a) an applicant in respect of the business;

    • (b) a foreign national who has been issued a permanent resident visa as a member of the start-up business class in respect of the business; or

    • (c) a designated entity.

  • Marginal note:Factors

    (5) The Minister must establish the percentages referred to in subsection (3) on the basis of the following factors:

    • (a) the number or projected number of start-up business class applicants and designated entities;

    • (b) the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal;

    • (c) the average size of businesses for which commitments are made and the average percentage of voting rights held by applicants and designated entities;

    • (d) the average size of start-up companies in Canada and the average percentage of voting rights held by the founders of those companies and other investors in those companies;

    • (e) the number, type and industry sector of businesses successfully started in Canada by approved start-up business class applicants per year and the most common ownership structures for businesses of those types in those industry sectors;

    • (f) the ownership share usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and

    • (g) industry standards and best practices, as determined in consultation with organizations referred to in section 98.02, designated entities or other relevant stakeholders.

  • Marginal note:Public notice

    (6) The Minister must publish the percentages established under subsection (3) on the Department’s website.

  • SOR/2018-72, s. 3

Marginal note:Documentation

  •  (1) An applicant must provide documentation to establish that they are a member of the start-up business class, including

    • (a) written or electronic evidence, provided by an entity that was designated on the day on which the application is made, that indicates that the entity made a commitment with the applicant;

    • (b) the results of a language proficiency evaluation referred to in paragraph 98.01(2)(b); and

    • (c) written or electronic evidence that they have the funds required under paragraph 98.01(2)(c).

  • Marginal note:Production of other documents

    (2) In evaluating an application in the start-up business class, an officer may, in addition to these documents, require the production of documents that are in the possession or control of the applicant or of the entity making the commitment and that relate to the applicant, the commitment or the business.

  • SOR/2018-72, s. 3

Marginal note:Assessment of commitment

  •  (1) If the officer is not satisfied that the entity assessed the applicant and the applicant’s business in a manner consistent with industry standards or is not satisfied that the terms of the commitment are consistent with industry standards, the officer may refuse to issue the permanent resident visa.

  • Marginal note:Multiple applicants

    (2) If there is more than one applicant in respect of the same business and one of the applicants who was identified in the commitment as being essential to the business is refused a permanent resident visa for any reason or withdraws their application, the other applicants must be considered not to have met the requirements of subsection 98.01(2) and their permanent resident visa must also be refused.

  • SOR/2018-72, s. 3
 
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