- Must meet the age, education, work experience, adaptability and language skills necessary to establish and operate a business in Prince Edward Island.
- Must provide a valid International English Language Testing System (IELTS) test result (obtained within the last 3 years). In order to obtain approval on language ability applicants must achieve a Canadian Language Benchmark Placement Test (CLBPT) equivalent result of CLBPT 5 from their IELTS test. Applicants below CLBPT 5 will be required to sign a language deposit agreement and make a $20,000 deposit.
- Must provide a business proposal at time of application and a business plan after the exploratory visit for purchasing partial ownership of a business in Prince Edward Island.
- Must provide a settlement proposal outlining the intention to move and settle in Prince Edward Island.
- Must provide evidence of personal net worth of at least $400,000 CAD obtained from legal sources.
- Must have a minimum of $100,000 CAD unencumbered personal funds to make the required escrow deposit.
- Must have sufficient unencumbered personal funds to make the required investment, operate the business for a minimum of one year, and settle in Prince Edward Island.
- Must sign an escrow agreement with the Province of Prince Edward Island and make a $100,000 CAD deposit, which is held in escrow, to be returned without interest once the terms and conditions of the agreement have been met.
- Must make a minimum investment of $150,000 CAD.
- Must control not less than 33 1/3% of the equity in the business or make an equity investment in the business of at least $1,000,000 CAD.
- Must provide active and on-going management of the business from within Prince Edward Island.
- Must not include a redemption option in the terms of the investment.
- Must execute an investment agreement outlining the terms and conditions of the applicant’s intent to invest in an eligible Prince Edward Island business.
Escrow Agreement
The escrow agreement outlines the terms and conditions that must be met for the refund of the $100,000 CAD deposit. The terms and conditions are based on the applicant’s intentions as outlined in the business plan for the purchase of at least 33 1/3% of the equity of a business in Prince Edward Island.
The applicant must execute the escrow agreement based on the terms and conditions agreed upon between the applicant and Immigration Services. Along with this agreement, the applicant must also submit, to Immigration Services, the sum of $100,000 CAD, payable to IIDI, to be held in escrow. The $100,000 CAD will be returned to the applicant, without interest, provided the terms and conditions of the escrow agreement have been met.
Investment Agreement
Should the applicant choose to purchase not less than 33 1/3% of the equity of an eligible Prince Edward Island business, the applicant is required to submit an investment agreement to Immigration Services. The investment agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
- Confirmation that the Business is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
- The proposed amount of the Investment in the Business;
- The number, class and conditions of the shares being purchased (if applicable);
- Confirmation that the investment does not include a redemption option;
- Confirmation that the Investment is not less than 33 1/3% of the equity in a Prince Edward Island business or make an equity investment in the business of at least $1,000,000;
- Confirmation that the Applicant provides or will provide active and ongoing management of the business from within Prince Edward Island; and
- Timeframes for the Investment.
Priority Sectors
Prince Edward Island will be limiting its nominations to those applicants who are best suited to enhance the Prince Edward Island economy. Prince Edward Island’s economy relies heavily on its core industries to create economic value. Accordingly, Prince Edward Island will be giving priority to applications involving;
- The starting or expanding of an export-oriented business.
- Businesses that utilize primary sector resources from the following sectors (Agriculture, Fishery and Forestry).
- Businesses that help economically diversify rural communities in Prince Edward Island.
- Businesses that develop the province’s emerging innovative sectors: bioscience, information technology, aerospace and renewable energy.
Preference will be given to applications that can demonstrate the ability to increase or maintain employment levels within the business.
Business Criteria
The Business Impact Category considers applications to start or purchase the equity of a business in Prince Edward Island. In order to be eligible, the business must generate revenue by selling goods and/or services at arm’s length to third parties. This excludes businesses operated for the primary purpose of deriving investment income, real estate rental operations, loan/investment companies and other non-active investment.