Investment in Prince Edward Island – RainCity Immigration Ltd

Immigration to Canada through the Prince Edward Island Business Impact Category

Prince Edward Island Business Impact Category Group

The Business Impact Group is specifically for business managers and entrepreneurship applicants who possess vision, strong leadership skills, and determination. This immigration group consists of the following three programs, each with its own specific conditions:

100% Ownership Stream

Partial Ownership Stream

Work Permit Stream

This page covers the details of the following topics related to these three programs:

Expression of Interest System

Priority Streams

Business Conditions

Expression of Interest Form Scoring Criteria

Expression of Interest System for Immigration (EOI)

The Prince Edward Island Provincial Nominee Program (PEI PNP) has introduced an Expression of Interest system, where interested applicants must create an EOI profile for each stream of immigration. The created profile then enters the EOI database, which will be valid for 6 months. Before submitting your EOI for the PEI Business Impact category, please review the eligibility criteria. Please note that an EOI is not an application; it indicates that a potential candidate is interested in participating in the PEI PNP Business Impact category.

The EOI scoring system has 6 selection factors based on which applicants can receive up to 200 points. If one of the future applicants is proficient in both of Canada’s official languages, they will receive an additional 10 points.

Selection Factors	Points
Age	20
Language	40
Education	20
Business Ownership or Senior Management Experience	50
Community Approval	50
Adaptability	35
Total Points	200

100% Ownership Stream

Investors who take complete ownership of a business in PEI by actively investing in and managing it are eligible for this stream.

Minimum Required Conditions

To qualify for the 100% Ownership Program, applicants must:

Be between 21 and 59 years old.

Have a minimum net worth of $600,000 obtained through legal means.

Have at least a high school education.

Possess transferable management skills and relevant work experience.

Have a minimum language skill level of CLB 4 or the equivalent.

Submit a detailed business plan for 100% ownership of the business.

Actively and continuously manage the business from within PEI.

Sign an escrow agreement for a deposit of at least CAD 200,000, with Prince Edward Island, which will be held by the province until the terms and conditions of the agreement are met.

Invest a minimum of $150,000 in one of the new or existing businesses owned and managed by PEI.

Escrow Agreement

The escrow agreement outlines the conditions that the applicant must meet for the repayment of the $200,000 that was paid. This agreement and its conditions are unique to the applicant and are based on their objectives in the business plan.

The deposit is submitted to the immigration office and then paid to IIDI, and will be held as a deposit until the conditions are met. The deposit will be refunded to the applicant without interest and according to the following schedule: $25,000 will be refunded after 6 months of residency in PEI, another $25,000 one year after residency, and the remaining $150,000 will be returned after fulfilling all the conditions of the escrow agreement.

Purchase Agreement

If the applicant chooses to purchase one of the existing businesses in PEI instead of starting a new one, they must provide a purchase ad sale agreement detailing the proposed investment. This agreement must include the following information:

Confirmation that the purchased business was not primarily established for the purpose of achieving investment income such as interest, dividends, or capital gains.

Purchase price of the business.

Number, type, and terms of the shares purchased (if any).

Confirmation that the investment does not include a buyback option.

Confirmation that the applicant will actively and continuously manage the business from within PEI now or in the future.

Timeline for purchasing the business.

Confirmation that the purchase price is for the entire business, not just a part of it.

Full details of the business’s activities and benefits.

Partial ownership plan.

Qualified applicants for this plan are those who intend to gain partial ownership (at least one-third) of a PEI business through investment and participation in day-to-day activities.

Minimum eligibility requirements.

To be eligible for the ownership plan, the applicant must:

Be between 21 and 59 years old.

Have a minimum net worth of CAD 600,000 obtained through legal means.

At least possess a secondary education.

Have transferable management skills and a record of previous employment.

Have at least language skills at CLB 4 or its equivalent.

Provide a complete business plan for partial ownership of that business.

Provide a detailed business plan for 100% ownership of the business.

Actively and continuously manage the business from PEI.

Sign a trust agreement for a deposit of at least CAD 200,000, sign it with Prince Edward Island, and this amount will be held by the province until the terms and conditions of the agreement are met.

Invest a minimum of CAD 150,000 for partial ownership of at least 33.33% (one-third) of the business shares, or invest at least CAD 1 million in the company.

Investment agreement.

If you purchase at least one-third of an existing business in PEI, the applicant is required to provide an investment agreement detailing the proposed investment. This agreement must include the following information:

Confirmation that the purchased business is not primarily set up to generate investment income like interest, dividends, or capital gains.

The amount of investment in the business.

The number, type, and terms of shares purchased (if any).

Confirmation that the investment does not include an option for repayment.

Confirmation that the investment does not account for less than 33.33% of the shares in a PEI business, or that the applicant is willing to make an equity investment of at least one million dollars.

Confirmation that the applicant will actively manage the business continuously from within PEI, now or in the future.

A timeline for the purchase of the business.

Work Permit Plan

The work permit plan is specifically for applicants looking to transition more quickly into life in PEI. Applicants in this program can start a new life using a temporary work permit, allowing them to enter Canada and familiarize themselves with the businesses they plan to invest in before being selected by Prince Edward Island. The work permit is issued by the IRCC, not PEI PNP.

Minimum Requirements

To be eligible for the work permit plan, applicants must:

Apply to the IRCC for work permit approval to manage a PEI business.

Have a minimum net worth of $600,000 obtained through legal means.

Have at least a high school level education.

Have transferable management skills and prior work experience.

Have at least language skills at CLB 4 or equivalent.

Provide a complete business plan for partial ownership of the business.

Provide a detailed business plan for 100% ownership of the business.

Actively and continuously manage the business from within PEI.

Sign a trust agreement for a deposit of at least 200,000 Canadian dollars with Prince Edward Island, which will be held by the province until the terms and conditions of the agreement are met.

To be eligible, applicants must invest at least $150,000 in a new business or one of the existing businesses in PEI. Once the application is submitted and approved by the PEI Immigration Services, the applicant becomes eligible to obtain a work permit. The immigration service provides the applicant with a letter through which they can apply for a temporary work permit from the IRCC.

Performance Agreement

The performance agreement outlines the conditions that the applicant must fulfill to obtain a provincial nomination certificate for permanent residence in Canada through the work permit program. This agreement must include at least:

– Investment timeline

– Investment amount

– Reporting and monitoring guidelines

– Pre- and post-nomination requirements

When the conditions outlined in the performance agreement are met, the applicant will receive a provincial nomination certificate for permanent residence in PEI.

If the applicant wishes to purchase 100% of an existing business in PEI, they must also provide a purchase and sale agreement. (See the section on the purchase and sale agreement above.)

If the applicant intends to acquire at least one-third but less than 100% of the shares of an existing business, they must also submit an investment agreement. (See the section on the investment agreement above.)

Priority Plans

Prince Edward Island places a strong emphasis on its key industries to create economic value for the province. Consequently, the province limits its choices by prioritizing applications as follows:

– Businesses that enhance and develop the province’s exports.

– Businesses in the fields of agriculture, fishing, and forestry.

– Businesses that contribute to economic diversity and plurality in rural areas of PEI.

– Businesses that develop emerging innovative sectors in PEI such as life sciences, information technology, aerospace, and renewable energy.

Business Eligibility

The business penetration group only considers businesses that generate revenue by selling goods or services to unrelated third parties. Businesses whose primary aim is to earn investment income, real estate consulting activities, lending companies, and other passive investments are not included in this group.

Applicants must demonstrate in their business plan that they possess all required documents or permits necessary to establish or purchase a business.

Minimum necessary conditions for a business

To qualify for the business influence group, a business must:

Be a profit-making company subject to the PEI Companies Act or the Canada Business Corporations Act.

Operate with the goal of earning profit from active income through the preparation and delivery of products and services.

Be in good standing concerning all debts and regulations in the province.

Have its headquarters in PEI.

Be a permanent business in PEI.

Be responsible for paying taxes on taxable income.

Have a suitable business feasibility.

Agree to participate in the program assessment process. In this process, the business must report to the immigration office for up to 5 years.

To confirm business eligibility, it must present and execute a purchase and sale agreement.

Sign a statement that affirms compliance with the IRPA regulations, does not harm the province, and follows professional advice (legal, accounting, financial, etc.) upon entering this area.

Seek out accounting/financial advice, risk assessment, tax, legal, or other necessary recommendations when trying to select and invest.

Have a net worth of at least $150,000, which must be actively used for the business.

Have the potential to generate significant economic profit for PEI.

Any business selling a share to an applicant must pay an additional $60,000 in salaries and net income and demonstrate the ability to maintain the applicant’s salary.

Ineligible businesses.

Applicants involved in any of the following types of businesses are not included in the business impact ratio group:

Businesses that provide lodging and breakfast, casual farming, and home-based businesses

Businesses related to daily loan payments, currency exchange, and ATMs

Pawnbrokers

Selling second-hand goods

Real estate development/real estate brokerage, insurance brokerage, or business brokerage

Specialized activities

Financial services

Consulting services

Any business that cannot issue shares.

Any business that would bring disrepute to the PEI government.

Any business that is started solely for the purpose of obtaining investment immigration through this program.

Start-ups and entities that have recently incorporated.

Start-ups are not eligible for the partial ownership scheme.

Companies that have recently registered one of the PEI business assets will qualify for the business impact ratio group if:

The business contributes $150,000 to the assets of the new company.

The new company is an independent entity with no connection to another main business.

The owner of the PEI business has sufficient expertise in the new company’s area of activity.

Businesses that previously operated as sole proprietorships or partnerships can also be considered, but they must be registered before the applicant purchases shares in that company.

Access restrictions

Businesses that have been invested in through this program within the last 48 months are not eligible. This concerns members of related company groups. Limited access applies to one applicant for each group related to the companies.

The same access restriction applies in cases of corporate related groups. Each company must be determined as an independent entity through the immigration office; however, this restriction does not exist within the related groups. Additionally, in cases involving common shareholders among multiple businesses, access limitations are at the discretion of the immigration office.

EOI assessment criteria

After creating an EOI profile, the potential applicant’s points are calculated based on the following 6 criteria:

Age

Age	Points
21 to 24 years	7
25 to 29 years	20
30 to 44 years	20
45 to 49 years	15
50 to 54 years	7
Over 54 years	0
Maximum points	20

Language proficiency

When calculating language scores, the lowest score obtained in all skill areas of the test (reading, writing, speaking, and listening) will determine the overall score. For example, if an applicant has a score of 7 in reading, writing, and speaking, but a score of 5 in listening, their CLB score will be 5.

Language Skills	Points
CLB 10	40
CLB 9	40
CLB 8	35
CLB 7	30
CLB 6	20
CLB 5	10
CLB 4 or high school diploma in English or French	0
Maximum Score	40

Education

Education Level	Points
Master's or PhD from a college or university after completing a bachelor's or master's degree	20
Post-secondary degree (bachelor's) from a college or at least a three-year program	17
Post-secondary diploma in a specific trade that requires a minimum of two years of full-time study	12
Completion of high school	0
Maximum Score	20

Business Ownership or Senior Management Experience

Business Ownership Years	Points
Owner (more than 50%) or a manager involved in the daily operations of the business with a direct role in decision-making. Minimum of 5 years out of the last 7 years	50
Minimum of 3 years out of the last 5 years	40
Owner (between 20% and 50%) or a manager involved in the daily operations of the business with a direct role in decision-making. Minimum of 5 years out of the last 7 years	35
Minimum of 3 years out of the last 5 years	25
Senior Management Experience Years	Points
Manager who participates in daily activities such as decision-making & supervising at least 3 employees and owns at least 20% of the company’s shares. Minimum of 5 years out of the last 7 years	30
Minimum of 3 years out of the last 5 years	20
Maximum Score	20

Community Endorsement

Scores for this selection factor are awarded based on signed approval from participating PEI associations.

Community Approval	Points
Written endorsement from rural associations	35
Written endorsement from an association in the capital region	10
Maximum Score	35

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