Finding an Investor / Business Partner
If you are interested in a newcomer investing in your business and becoming a partial owner through the Provincial Nominee Program, you must submit an application to our office to assess eligibility. You must be willing to sell at least 33 1/3% of the equity of your business to the investor, and they must be active in the day to day management of the company. You are responsible for finding the potential investor 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.
- Have incurred a total of $60,000 in wages and/or net income in the last year, to demonstrate the ability to support an applicant’s salary.
What businesses are ineligible?
The following businesses are considered ineligible:
- Any business or member of an associated group of companies that has received investment through the Provincial Nominee Program within the past 48 months.
- Start up businesses, unless it is a newly incorporated company creased from an existing PEI business’ assets which satisfies the following conditions:
- The PEI Business provides $150,000 in assets to the new company;
- The new company is a stand-alone business entity without reliance on the original business; and
- The PEI business owner has sufficient expertise in the new company’s area of operation.
- 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)
- Real estate development, unless deemed to be a significant economic benefit to the PEI economy
- If the business is in the real estate development sector, the applicant must :
- Must invest a minimum of $1,000,000 in a commercial building or $1,500,000 in a residential building.
- Must contain a minimum of 8 rental units if it is a residential building or 4 units if it is a commercial building.
- Must demonstrate the ability to employ a minimum of 1 full-time employee.
- Meet all other terms and conditions of their escrow agreement, including residency requirements, and minimum operating expenses of $75,000.
- More than one applicant may be able to invest in the venture if it can be demonstrated that the investment will meet the terms and conditions of escrow agreement.
- The Office of Immigration will allow 20 applicants to invest in real estate 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 real estate development to ensure the program criteria is met as outlined in the escrow agreement.
- 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
- 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)
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.