Selling Your Business to a Newcomer
If you are interested in selling your existing PEI business to a newcomer through the Provincial Nominee Program you must submit an application to our office to assess eligibility. You are responsible for finding the potential buyer for your business and you should consider posting your business on the peibusinessesforsale.com website.
Is my business eligible?
For your business to be eligible it must:
- Not be an ineligible business.
- Be a for-profit company incorporated under the Companies Act of PEI or the Canada Business Corporations Act and which is operating for the primary purpose of earning profits from active income through the provision of products and/or services.
- Be in good standing with the Province on all debts and obligations.
- Maintain a “permanent establishment” in PEI as defined under the Income Tax Act by regulation 400(2).
- Have assets with a book value of at least $150,000 which are actively used for the business. Businesses will also be considered if they have assets which are actively used for the business with a fair market value of at least $150,000 as valued by a certified appraiser or have received a valuation for their business from a professional accountant stating a value of at least $150,000.
What businesses are ineligible?
The following businesses are considered ineligible:
- Any business or member of an associated/related group of companies that has received investment through the Provincial Nominee Program within the past 48 months.
- Bed and breakfasts, hobby farms, and home-based businesses
- If the business is an Inn or Boutique Hotel, it must satisfy the following conditions:
- Have at least 5 rental units, each having at least a three-piece bath
- Have revenues of at least $100,000 in the last operating year, supported by financial statements or a tax return
- Have eligible operating expenses of at least $75,000 in the last operating year, supported by financial statements or a tax return
- Pay day loan, cheque cashing, money changing, and cash machine businesses
- Sale of used goods (excluding collectibles, or where the business provides value-added services such as repairs, refurbishing, or recycling)
- Construction/Renovation Businesses must meet the following:
- Have at least 3 arms-length staff employed full-time for at least 6 months of the year;
- Rent or construct a space that is outside of their residence to conduct business from;
- Demonstrate relevant education or a minimum of 5 years experience in the proposed business; and
- Meet all other terms and conditions of their escrow agreement.
- Real estate development, unless deemed to be a significant economic benefit to the PEI economy
- Real estate, insurance, or business brokerage
- Businesses started for the sole purpose of gaining access to immigrant investment through the program
- Professional practices, financial services, and consulting services
- For consulting or professional businesses to be considered eligible for the program, they must commit to the Office of Immigration that they meet the following criteria:
- Must invest a minimum of $150,000 in the business.
- Must demonstrate the ability to employ a minimum of 1 full-time employee that holds a professional designation or is certified in the profession of the business being operated.
- Maximum of 1 nominee per project (i.e. cannot combine investments).
- Meet all other terms and conditions of their escrow agreement, including residency requirements, and minimum operating expenses of $75,000.
- Have professional experience or a professional designation in the business in their home country.
- The Office of Immigration will allow 20 applicants to invest in consulting ventures and will review these businesses to ensure the investment meets the desired economic outcomes of the program.
- Applicants must receive written approval from the Office of Immigration before purchasing or investing in a consulting or professional business to ensure the program criteria is met as outlined in the escrow agreement.
- Any other type of business that by association would tend to bring the program or the government of PEI into disrepute
- An entity that cannot issue shares
- An entity as described in IRPA 87(6)(a)
- Businesses that have an associated shareholder can receive investment in 2 separate companies where the shareholder owns the majority of each business. Any other businesses where the associated shareholder owns an equity interest and is seeking investment from a PNP applicant must meet the following criteria:
- Must invest a minimum of $150,000 in the business which is in an eligible sector.
- Must be an existing business that can provide at least one year of financial statements.
- Common investor cannot be the majority shareholder in each of the companies seeking investment.
- Company seeking investment cannot do business with company with associated shareholder. Meaning cannot directly sell or buy products or services to the associated company.
- The associated companies cannot share office space.
- Associated companies cannot be in the same sector.
- Meet all other terms and conditions of their escrow agreement, including residency requirements, and minimum operating expenses of $75,000 and the PNP applicant will own a minimum of 33 1/3% of the equity of the company.
How do I apply?
You must complete a Consent to Pursue Investment form and submit it to our office with the required supporting documentation. The complete application package can be submitted to the Office of Immigration in two ways:
In person at 94 Euston Street (2nd floor), Charlottetown, PEI; or
Courier or mail package to
Office of Immigration
94 Euston Street, 2nd Floor
PO Box 1176
Canada C1A 7M8
Do I have to pay a fee?
There is no fee to file the Consent to Pursue Investment form.
What forms do I need to fill out?
You must fill out the Consent to Pursue Investment form and submit the required supporting documentation, as listed on the application form..
Who can I contact to ask questions?
Forward questions to email@example.com or call (902) 620-3628.