Investment in Newfoundland and Labrador

The Newfoundland and Labrador Provincial Nominee Program (NLPNP) in Canada helps attract foreign investors and entrepreneurs through various subprograms, such as investment and entrepreneurship programs, making it possible for them to immigrate to the province.

Two of the entrepreneurship programs in Newfoundland and Labrador include:

– NLPNP International Entrepreneur Stream

– NLPNP International Graduate Entrepreneur

The NLPNP International Entrepreneur Stream is an investment method in this province and also serves as an immigration program designed to attract experienced business owners or senior business managers to start a business or purchase an existing one in the province, thereby contributing to the province’s economy.

The entrepreneurship program in Newfoundland and Labrador is based on the EOI (Expression of Interest) system. Applicants who score higher receive invitations and can submit their applications to the provincial immigration office. After their files are approved, applicants initially receive a temporary work permit and, upon entering the province, are required to put their business into operation.

In the following sections of the article, we will delve into more details about the NLPNP International Entrepreneur Stream.

Benefits of the investment method in Newfoundland and Labrador

– The opportunity to invest in abundant natural resources in the province

– Access to a skilled and readily available workforce

– Low and competitive taxes

– Enjoyment of a high quality of life

– Modern infrastructure in the province

Conditions for investment and entrepreneurship in Newfoundland and Labrador

To apply for the Newfoundland and Labrador International Entrepreneur Program, both the applicants and the target business must meet specific conditions, which we will detail in the following sections of the article:

Required conditions for applicants

You should be between 21 and 59 years old.

You need to have at least a high school diploma that has been assessed by one of the Canadian credential assessment organizations (ECA). This diploma should have been obtained within the 5 years prior to submitting your EOI.

In the past 5 years, you must have at least 2 years of active management experience and business ownership (with a minimum of 25% ownership of the business), or have at least 5 years of senior management experience within the last 10 years.

You should have a minimum CLB 5 score or its equivalent in English or French.

You need to have at least $600,000 in net assets, including personal and business assets, that can be easily transferred to Canada.

You must invest at least $200,000 of your own money to set up a business in Newfoundland and Labrador, ensuring you own 33% of the business, or invest $1 million.

You should intend to live permanently in this province.

Before starting or purchasing a business, you need to take an exploratory trip to the province.

After starting the business in the province, you’ll need to create a full-time job for at least one Canadian citizen or permanent resident.

Who is not eligible to apply for the Newfoundland and Labrador Entrepreneurial Program?

If you fall into one of the following groups, you are not allowed to apply for the Newfoundland and Labrador provincial entrepreneur program:

You are living illegally in your country of residence;

You have been banned from entering Canada;

You do not have legal residency status in Canada (unless you are taking steps to restore your residency status);

The Canada Immigration or the Canada Border Services Agency has issued a departure order for you;

You intend to make a passive investment in Newfoundland and Labrador.

Business requirements

Your proposed business must meet the legal requirements of the region in which it is established.

Your proposed business must be a profit-generating entity aimed at making money through the sale of goods and/or provision of services.

The establishment and operation of the business must be permanent.

According to the taxation laws for permanently established businesses, you are required to pay applicable income tax.

You need to actively manage your business in the same area of Newfoundland and Labrador where you’ve set it up. So, you’re not allowed to manage it from other parts of the province, other provinces in Canada, or other countries.

The business must have the potential to generate significant economic benefit for this province.

Additional Conditions

Besides the conditions mentioned in the previous section, depending on whether you’re starting a new business in Newfoundland and Labrador or buying an existing one, you will need to meet other requirements that we will outline below:

Requirements for New Businesses

If you’re starting a new business in the province, you must create at least one full-time job for a Canadian citizen or permanent resident. This job must:

– Not be one you created for your relatives or family members;

– Be directly related to the business you’ve established;

– Have a salary level equal to the general salary level.

Requirements for Purchased Businesses

If you are purchasing a business in the province, you also need to consider the following conditions:

– The business must have been actively operated by the same previous owner for the past 5 years;

– If you’re coming from outside Newfoundland or outside Canada, you must definitely visit the province for an exploratory trip before purchasing the business and meet with the owner or owners;

– Provide documentation showing that you’ve made reasonable efforts to assess the business’s value according to fair market value;

– The business must have been actively managed and not under the management of a court-appointed trustee due to bankruptcy;

– You must offer a position with similar terms and conditions to current employees, such as maintaining their previous wages.

Non-Acceptable Businesses for Entrepreneurial Immigration to Newfoundland and Labrador

Jobs that are run remotely (from other areas of Canada or outside Canada);

Activities related to the renting, investing, and leasing of properties;

Construction/development or real estate brokerage, insurance brokerage, or business brokerage (unless you can prove that the business offers significant benefits to the province);

Specialized services or self-employed business operators requiring licenses or credentials;

Payday loan services, cash checking, money transfer, and cash vending machines;

Mortgage agencies;

Taxi companies;

Home-based businesses (unless you can prove that your business offers significant benefits to the province);

Businesses related to the production, distribution, or sale of sexual products or services;

Non-profit businesses;

Businesses aimed at earning income through passive investment;

Businesses that operate solely on commission for employees;

Any other type of business that would bring disrepute to the government of Newfoundland and Labrador.

Investment point system in Newfoundland and Labrador

In the Newfoundland and Labrador entrepreneurship program, applicants’ scores are calculated based on factors such as language, education, work experience, age, and adaptability.

The minimum score for applicants in this program must be 72 out of 120 in order to enter the draw pool. Applicants who score the highest will receive invitations.

Language skills

For the Newfoundland and Labrador entrepreneurship program, a minimum score of 5 CLB in English or French is required, and higher scores will lead to more points. Additionally, if you score in both English and French, your score will be higher.

The equivalent of CLB scores in English is the General IELTS test or CELPIP, and the equivalent in French is the TEF test.

First official language level	Points per skill
CLB 7	6
CLB 6	5.5
CLB 5	5
Second official language level	Points per skill
CLB 5	2
Maximum points	32

Education

Education	Points
Holding a doctorate	24
Holding a master's degree	20
Completing a two-year course or more after high school	15
High school diploma obtained in Canada or outside Canada	12
Completing a two-year course or more after high school in Canada	6
Maximum points	30

Business Ownership/Senior Management Experience

Years of Activity	Points
Business ownership for 3 years or more	15
Business ownership for 2 to 3 years	5
Senior management experience in business for 5 years or more	9
Maximum Points	24

Economic Priorities of Newfoundland and Labrador

Economic Priorities	Points
Business in the fields of technology or agriculture or aquaculture or natural resources	8
Business in areas that are not the province's economic priority	4
Starting a business in rural areas (outside of St. John's campus)	4
Maximum Points	12

Age

Age	Points
21-30	10
31-40	12
41-50	8
51-59	4
60 years and older	0

Adaptability

Adaptability Factors	Points
Having a relative in Newfoundland and Labrador	6
Having 2 years or more of previous work experience in the province	4
Having 1 to 2 years of previous work experience in the province	2
Maximum Points	10

What factors help increase the score in Newfoundland and Labrador’s Entrepreneur Program?

Higher language score

Providing a second language score, such as French

Steps for obtaining the Newfoundland and Labrador Investment Visa

1. Expression of Interest (EOI)

To apply for the Newfoundland and Labrador provincial entrepreneur visa, you first need to register your interest in the Newfoundland and Labrador Entrepreneur Program on the province’s immigration website and answer its questions.

Your score will be calculated based on the requirements of this program, and if you reach the minimum program score of 72, you’ll enter the draw pool. Applicants with the highest scores will be selected for the next stage.

2. Receiving an Invitation to Apply (ITA)

If your score is higher than other applicants, you will be selected and receive an invitation. After receiving the invitation, you have 90 days to submit your application for the Newfoundland and Labrador Entrepreneur Program to the provincial immigration office. At this stage, it is necessary to attach your business plan and the report validating your net assets along with other required documents to your application.

In a part of the business plan, you need to detail your exploratory trip to the province, which is mandatory for this program, in a thorough and precise manner. You also have to get your net asset verification done through one of the institutions specified by the province.

3. Interview and signing the execution agreement with the province

After your application is evaluated and it’s confirmed that you qualify for the province’s entrepreneurship program, you’ll be invited for an in-person interview. From the time you’re notified about the interview request, you have 60 days to enter the province and complete your interview with the entrepreneurship program officials. Failing to attend the interview at the specified time will result in your case being closed.

If the interview is successful, the business execution agreement will be sent to you. You need to read it carefully, sign it, and send it to the province’s immigration office within a maximum of 15 days.

4. Applying for a Canadian work permit

After signing the execution agreement, the province’s immigration office will issue a letter of support. This letter is required for applying for a temporary work visa. You have 2 months from the date the letter is issued to submit your work visa application to the Federal Immigration Office of Canada.

At this stage, prepare all the necessary documents, which will be mentioned further along, and send them along with your application to IRCC. If you have accompanying family members like a spouse and child, you can also apply for their accompanying visas simultaneously.

Once your application is approved and you receive your work permit visa for Canada, you are allowed to enter Newfoundland and Labrador to proceed with the next steps.

Necessary documents for obtaining the Newfoundland and Labrador investment visa

Identification documents such as passport/travel history, birth certificate translation, national ID card

Marriage certificate (if applicable)

Business plan

Support letter from the province

Translation of educational credentials and transcripts along with their equivalency documentation

Language certification like General IELTS, CELPIP English, or DELF French

Resume

Employment documents if you are a senior manager in the business, such as a job letter, employment contracts, recommendation letters from all employers in the past 10 years, and pay slips from the last 12 months

Work documents if you are a business owner, like business license, company bylaws, official newspaper, tax registration certificate, documents proving ownership of shares in the company, financial statements for the past 5 years, list of current employees with their weekly and monthly salaries, and documents showing your current business like product brochures and photos related to the business setup

Documents showing exploratory travel to the province such as plane tickets, hotel accommodations, travel photos, etc.

Documents proving financial capability to support the required investment in the Newfoundland and Labrador entrepreneur program

Criminal record clearance certificate

Required program forms

Canadian residency through investment in Newfoundland and Labrador

To obtain entrepreneurship residency in Newfoundland and Labrador, after getting a Canadian work permit visa and entering the province, you need to complete two steps, which we will explain next:

1. Establishing a business in the province and applying for a provincial nomination certificate

After entering Newfoundland and Labrador, you have 30 days to meet with the immigration officials in the province. In this meeting, they will answer your questions regarding your business setup and refer you to other relevant service providers for more information.

From the time of your entry into Canada, you have 6 months to set up your business and then actively manage it for at least one year. After this period, you must apply for a provincial selection certificate. This certificate is essential for applying for permanent residency in Canada.

To receive the provincial nomination certificate, you must fulfill all obligations under the executive contract with the province and reside in the same province.

2. Apply for permanent residency in Canada

If you receive a provincial nomination certificate, you have 6 months to submit your application for permanent residency in Canada to IRCC. When applying for residency in Canada, your status must be legal and you must have a valid work permit.

At this stage, you need to undergo medical examinations and provide a background check. If your documents are approved, you will be granted permanent residency in Canada.

The Foreign Graduate Entrepreneurship Program in Newfoundland and Labrador

The Foreign Graduate Entrepreneurship Program in Newfoundland and Labrador is for graduates who have studied for at least two years at Memorial University or the College of the North Atlantic and have at least one year of active ownership and management of a business in Newfoundland and Labrador.

To apply for this program, you need to submit an Expression of Interest (EOI), and if you receive an invitation, you must apply for provincial nomination. You will also need to participate in an interview as part of the application review process, and if you succeed, you will receive a provincial selection certificate and be eligible to apply for permanent residency in Canada.

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Frequently asked questions

What is the timeline for the Newfoundland and Labrador Entrepreneurship Program?

The processing time for applications in the Newfoundland and Labrador Entrepreneurship Program depends on the time needed to verify the documents and the volume of applications received.

How much does it cost to process applications in the Newfoundland and Labrador Entrepreneurship Program?

The application processing fee for the foreign entrepreneurs program in Newfoundland and Labrador is $1,000.

What is the minimum initial investment for the foreign entrepreneurs program in Newfoundland and Labrador?

CAD 200,000

What are the main sectors for entrepreneurship in the province of Newfoundland and Labrador?

Agriculture, aquaculture, technology, and natural resources such as oil, gas, and mining.

Is it possible to have a partner in the Newfoundland and Labrador investment program?

Yes, considering the primary applicant, up to 10 individuals can apply for the province’s investment program through one application. These individuals can be Canadian citizens, permanent residents of Canada, or foreigners.

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