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Program Requirements For The PEI Investor Program

PEI Investor Program focuses on helping foreign nationals who want to acquire, invest and operate a business in the province of Prince Edward Island.

If you seek to be informed on the program requirements for the PEI Investor program, this article is considered resourceful and can help you as well. Besides, Prince Edward Island (PEI) is one of the provinces and territories in Canada. It is also the smallest province in Canada and is situated on an Island on the Gulf of St. Lawrence.

Prince Edward Island is generally accepted as a Canadian province that is not too expensive for entrepreneurs. Thus, you’ll spend less in setting up your business, maintaining its operations, as well as on corporate and property taxes.

Moreover, just as PEI Provincial Nominee Program helps foreign nationals who are skilled, educated, and experienced in becoming Canada’s permanent residents, PEI Investor Program focuses on helping foreign nationals who want to acquire, invest and operate a business in the province of Prince Edward Island.

Furthermore, Business Impact Category, initially known as PEI Investor Program, allows foreign nationals who possess business management skills to be opportune to drive the economic growth of Prince Edward Island, and Canada in general.

Hence, foreign nationals who were approved by Immigration, Refugees, and Citizenship Canada (IRCC) will be nominated by the province of Prince Edward Island for their permanent residency in Canada.

PEI Investor Program

As a foreign national, you are required to make a selection from three (3) streams of PEI Investor Program/ Business Impact Category, which includes;

  1. 100% ownership stream
  2. Partial ownership stream
  3. Work permit stream

100% Ownership Stream

Canada’s province of Prince Edward Island is cognizant of the significance of businesspersons in promoting her economy.

Thus, foreign nationals are issued a nomination certificate to apply for Canada’s permanent residency if considered capable of bringing growth to the economy.

Moreover, the 100% ownership stream requires you to set up a new business or completely acquire an existing business in the province of Prince Edward Island.

You’ll also need to submit the purchase and sale agreement of the business to the Office of Immigration.

The purchase and sale agreement entails each detail of the intended investment between the foreign national and the PEI business.

Thus, the purchase and sale agreement should feature at least possible number of information, which includes;

  • The cost price of buying the business
  • An elaborate description of the business activities and interests
  • Amount, class, and condition of the shares bought (if available)
  • Confirmation that the investment doesn’t have a redemption option
  • Confirmation that you didn’t acquire the business mainly to generate investment income like interest, dividends, and/or capital gains
  • proof that you will provide active and ongoing management of the business within the province of Prince Edward Island
  • Confirmation of the cost price for acquiring the business, and not one or a few of the business
  • Timelines for buying the business

Program requirements for 100% Ownership Stream under the PEI Investor Program

If you intend to apply for PEI 100% ownership stream, ensure to appropriately fill out and submit the required federal and Provincial NP forms.

Also, submit your supporting documents. Moreover;

  1. You must be aged between 21 to 59 years as at the application date
  2. You should have a verifiable self net worth of at least $600,000
  3. Should have at least high school education or equivalent
  4. Should possess transferable management skills and previous employment
  5. A test result of a valid IELTS that scored not less than a band score of 4.0
  6. Provide an elaborate business plan for the 100% business ownership
  7. Provide active and ongoing management for the business without exceeding the boundaries of Prince Edward Island
  8. Sign an escrow agreement that includes a judicial admission on the initial payment or deposit of $200,000
  9. Invest at least $150,000 into a newly established or existing business that is owned and run within the province of Prince Edward Island.

Partial Ownership Stream

PIE Business Impact Category – Partial Ownership Stream is applicable to foreign nationals who desire to immigrate to the province of Prince Edward Island as a partial owner of a business. Apart from other requirements, you are required to either acquire 33.3% of business equity or to make an investment of $1,000,000 in its equity.

If you’re a well-versed entrepreneur or business manager, you can consider immigrating to Canada via Partial Ownership Stream. Thus, you’ll need to partake in the business’s daily operations as you possess a certain level of its ownership.

Additionally, you will be required to submit an investment agreement to the Office of Immigration. The investment agreement should feature each detail of the intended investment between the foreign national and the business owner.

However, the investment agreement should contain several details, which includes;

  • The amount of money you intend to invest in the business
  • Amount, class, and condition of shares bought (if available)
  • Confirmation that you didn’t invest below 33.3% in the business equity or less than $1,000,000 in the business equity
  • Confirmation that the business’ operations are not mainly based on generating investment income like interest, dividends, and/or capital gains
  • proof that the investment doesn’t have a redemption option
  • The total period of time that the investment would last for
  • Confirmation that you will provide active and ongoing management for the business within the province of Prince Edward Island.

Program requirements for Partial Ownership Stream under the PEI Investor Program

Firstly, make sure you properly fill out the necessary federal and Provincial NP forms. Afterward, submit them, together with your supporting documents to the Office of Immigration.

More so, you’re also required to;

  1. Be aged between 21 to 59 years on the application date
  2. Should have a verifiable self net worth of not less than $600,000
  3. Should have at least high school education or equivalent
  4. A valid IELTS band score not less than 4.0
  5. Should possess transferable management skills and past employment
  6. Provide an elaborate business plan intended for the partial business ownership
  7. Provide active and ongoing management of the business without exceeding the boundaries of Prince Edward Island
  8. Sign an escrow agreement that contains a judicial admission on the initial payment of $200,000
  9. Make the least investment of $150,000 into an existing business in the province of Prince Edward Island for a partial ownership interest of not less than 33.3% of voting shares. As an alternative, you need to invest at least $1,000,000 in a business in PEI.

Work Permit Stream

PEI Business Impact Category – Work Permit Stream allows foreign nationals to move into Canada, work and acquire knowledge on a business before investing funds. Through The Work Permit Stream, you will be opportune to gain cognizance of the Canadian business environment before nomination by PEI Provincial Nominee Program.

Besides, the Work Permit Stream requires you to first apply for a Canadian temporary work permit through Immigration, Refugees and Citizenship Canada (IRCC), and sign a performance agreement with the Office of Immigration. After issuance of your work permit, you’ll have to move to Prince Edward Island and start making moves to meet the terms and conditions of the performance agreement.

After meeting the terms and conditions, the province of Prince Edward Island will nominate you for a Canadian permanent residency.

Program requirements for Work Permit Stream under the PEI Investor Program

Before anything else, ensure filling and submitting the required federal and Provincial NP forms, along with your supporting documents.

You are also required to;

  1. Apply to IRCC for a work permit to operate a business in the province of Prince Edward Island
  2. Invest a minimum of $150,000 into a new or existing business in Prince Edward Island
  3. Provide a valid IELTS with a minimum band score of 4.0
  4. Should have at least high school education or equivalent
  5. Should possess transferable management skills and past employment
  6. Provide active and ongoing management of the business within Prince Edward Island
  7. Should have a verifiable self net worth of at least $600,000
  8. Provide an elaborate business plan under an eligible sector
  9. Sign a performance agreement that contains a judicial admission on your investment to the business

However, after your arrival in Canada, you’ll be given a grace of two (2) years to comply with the terms and conditions in the escrow agreement. As soon as you’ve fulfilled the terms and conditions and it has been verified by IRCC, you are allowed to get a refund of the $200,000 escrow initial payment without any interest added to it.

FAQs about the program requirements for the PEI Investor Program

Q. What is the process involved in PEI Investor Program?

PEI Investor Program will mostly require you to;

  • Fill out and submit the Business Impact Category self-assessment, as well as a business proposal
  • Undergo an interview in the Office of Immigration
  • Submission of an elaborate business plan to the Office of Immigration
  • Nomination by the province of Prince Edward Island (PEI) for Canada’s permanent residency
  • Approval by Immigration, Refugees and Citizenship Canada (IRCC) and arrival to Canada
  • Work towards meeting the terms and conditions in the escrow agreement
  • After satisfying the terms and conditions contained in the escrow agreement, you will be refunded of your investment

Q. What stream of PEI Investor program is open?

Ans – Since the 20th of September 2018, the province of Prince Edward Island only accepted foreign nationals via the Work Permit Stream. Other streams, which include the 100% Ownership Stream and Partial Ownership Stream have been closed since then.