Scenarios for Family and Business Immigration

Family Business Scenarios are Possible.

This questions is asked all the time. How can me and my family immigrate together? In traditional scenarios the parent is a the main applicant and the other family members are listed as accompanying family members. This however is not always possible.

• family composition changes
• child becomes too old
• parents cannot qualify for traditional employer supported immigration

There as many options as there are acronyms. What cannot be overlooked is a clear plan is needed. In business immigration, there are generally two ways for families to immigrate.

• sponsoring oneself: e.g. by one's own business
• sponsored by someone else: e.g. employer

However, sometimes a combination of the two plans are needed. We will explore some scenarios below.

Factors to Consider

One should be aware that special immigration restrictions may apply to family enterprises, which is not followed, can nullify a family's immigration application.

• share composition
• which kinds of familial ownership is allowed
• length of operation history required
• share ownership timelines

At the end of the day, the immigration case must be logical, intelligible, and ethical. Only then you will have a strong case. 

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Start-up Visa FYI

What is the Start-up Visa/Start-up Business Program?

Why has starting a business in Canada become so attractive? Considering the headlines, it is obvious that there are fewer barriers to enter Canada and start a business. The Canadian government has made it even easier for innovative companies to make Canada their home with a suite outstanding support. Moreover, this program is next best thing next to defunct immigrant investor program.

Want to speak to us now? Contact us here.

Advantages

• <= 5 applicants with families can apply
• no upfront investment needed
• no education requirement
• low English requirement: i.e. >=CLB 5
• can stay in home country without working first in Canada
• no need for net worth verification

Government Fees

• application fee per applicant: $1575
• right to PR fee per applicant: $500
• spouse application fee with right to PR fee: $825
• work permit fee:  $155
• open work permit fee: $100
• employer compliance fee: $230
• study permit: $150

Timeline

See below↓. Note the cooperation from all stakeholders, including applicants can greatly expedite the process. 

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Business Questions for the Business Immigrant 商务移民的生意问题

So you have decided to immigrate to Canada as a business person. How do I know which one works for me? The answer to this questions is based on many factors, some you can measure, others you cannot. Before you make an immigration decision, you should consider the following non-exhaustive list.

Feasibility and Credibility

• Why do I want to come to Canada?
• What is my plan to immigrate to Canada?
• What is my back-up plan if I cannot immigrate to Canada?
• Can I get the proper documentation?
• How long does it take for me to get the required documents?
• Am I able to support my claims with documents--third party or otherwise?
• Have I had immigration issues in the past?
• Have I engaged in activities that the Canadian government might deem unacceptable?

Personal Ability

• What is my highest level of education?
• How recent is my education?
• What are my professional qualifications?
• What is my significant work experience in the last ten years?
• How much experience I have as senior manager or executive?
• How much experience can I prove?
• What are my language abilities?
• How willing are you to undergo additional training, schooling, etc. to be a better immigration candidate? 

Financial Ability

• What is my personal net worth?
• What is my family's net worth?
• What are my assets?
• What are my liabilities?
• How much can I invest?
• How easily can I invest: e.g. liquidity concerns?
• What tax and legal arrangements do you need to prepare?
• Am I willing to undergo a net worth verification?

Personal Flexibility

• How much time can I afford towards immigration?
• How will the care of children and/or other family members be arranged?
• Can I allow my spouse or common-law partner to be the lead applicant?
• Can I be separated from my family for extended periods of time?
• Where am I willing to settle?

This exercise is not meant to be done quickly and if you for a business coach please let us know. However, once you are ready, we would happy to have a chat with you. Fill out the contact form here.

Solutions for a Start-up Business 新兴企业的方案

Canadian start-ups and the Immigrant Investor

Running a company is no easy feat. It is even harder if your company is young and/or pre-revenue. So what are your options? Thanks to the digital revolution, there are more options than ever.

• Alternative financing: This is reserved for the financial engineers, investment bankers, hedge funds, etc. They may “short” shares, create complex special purpose vehicles, etc. Generally, most young companies are too small to make use of alternative financing. Public coin offerings were popular, but you will need to be aware of current regulations.

• Apply for loans: Most loans require collateral. Also, banks and credit unions tend to invest in businesses with stable, predictable income. As such, most young companies cannot benefit from traditional loans. However, governments and many small business administrations can make loans provided the business meets certain criteria: e.g. diversity mandates, industry mandates, etc.

• Equity crowdfunding: Before retail, non-accredited investors who wanted to invest in early stage companies could not. That is no longer the case. Equity crowdfunding is ideal in early stage companies as very little equity and control needs to be exchanged for the funds. The downside is that amount that can be raised each round is limited. As well, equity crowdfunding platforms' service arrangements may or not fit with your company's plan.

• Equity fundraising: Companies can issue or sell shares to angel investors, venture capital firms, etc. to raise significant amounts of cash. Companies undergoing this route should expect this journey to be convoluted and long. However, the right deal can add a trusted mentor to your team, which can be much more invaluable than any money raised. Loss of control tends to be a common issue using this method.

• Going public: In the past, only companies of a certain size could list. With new exchanges, the threshold for listing is decreasing. The regulatory burden can be high: e.g. initial public offering versus reverse take over.

• Government and private incentives: Contests, hackathons, subsidies, grants, tax credits, are all non-equity, non-loan methods to raise funds. Sometimes it is also a great way to get publicity. The downside may be that the time and record keeping may not make it worthwhile.

• Incubators, accelerators, boot camps, etc.: You can enrol into one this organization. Fees may be charged for network access, desk fees, legal support, etc. Usually a vetting process is done to ensure only the top candidates get accepted. Afterwards, candidates are accepted on a cohort basis. Depending on the candidate’s business, candidates may graduate with funding and other perks.

• Non-equity crowdfunding: Don't want to give up equity or get into a loan? You can do so with product crowdfunding. Generally, most product crowdfunding works by offering perks to early adopters. In exchange, early adopters invest in your company. Different crowdfunding targets different industries and niches.

As shown above, there are many choices. However, immigrants can be another way to bolster your company. For this discussion, the focus will be on investment immigration. At a high level, immigrant investors can purchase equity in your company in exchange for permanent and/or temporary status in Canada. Skilled immigration will be discussed another time.

For the time being, passive immigration investments schemes are closed. So why would this be important? It means there are limited options for Canada investor immigrants. It means your company can get high quality business people whom can bolster your company with funds. As a result, investor immigrants are more inclined in investing in your company. Like any union, you should plan to the end.

Things to consider

• Documentation: Are your documents in order? Can you get the documents in order?
• Due diligence: Are you comfortable with someone “peeking under the hood”? Are you prepared and willing for a cross-examination?
• Communication: Are you able to communicate effectively? Can you get along with the potential investor immigrant?
• Work division: What role will each team member have? Who makes what decisions? How will the company operate?
• Commitment: Are you willing to commit fully in case of delays and unexpected issues?
• Share allocation: How much equity are you willing to give up?
• Funds: How much are you fundraising? When do the funds need to deposited?
• Business viability: Is your business feasible and viable? 
• Business sector: Is your business in a sector that the government wants to promote?
• Innovation: How innovative is your business? Will you pass a peer-review?
• Timeline: What are your milestones? When do you need to complete those milestones?
• Taxes and legal: Does your company meet regulatory standards? Have taxes been paid appropriately?

Regarding tax and legal matters, your trusted lawyer and accountant will more than helpful. As well, business consultant, coaches, mentors, etc. can help you with developing specific growth strategies. We are connected to many domain experts whom can lend a helping hand. 

If you are interested in exploring this option, feel free to reach out. 

Attracting the Immigrant Investor.

Up and Forward

With passive investing no longer an option, investor immigrants are forced to either start a business or join an existing business to immigrate.  In fact many immigrant investors expect to lose money when they invest in a foreign business. This has led many to believe that immigrant investors are less savvy, more desperate, etc. However, more often than not, business deals do not close.  

In fact, immigrant investors typically have the following profile.

• Might have post-secondary education
• Senior business and/or professional experience
• Have children and/or are married
• Have >$ 0.1 MM to invest
• English is not their mother tongue

So what does an immigrant investor like in a business?

• stable and recurring profits
• sufficient profits
• reasonable expenses
• revenue growth potential
• has or will have indeterminate, full-time staff that are model employees
• in a government favoured sector: e.g. technology
• operating more or less smoothly
• has a history of good workplace practices
• < $1 MM investment
• comply with local laws
• no lawsuit or disputes
• located in a favourable locales: e.g. not too remote
• kept clear and accurate records
• has a need for the immigrant investor in an active role
• resistant to business shocks: e.g. pandemic, natural disasters, etc.
• minimal problems: e.g. expiring licensing agreement, union dispute, etc.
• has significant ties to assets: e.g. real estate, intellectual property, etc.

What might be enticing to an immigrant investor may not totally align with government objectives. 

• new businesses in new industries
• businesses located in rural communities
• job creation for traditionally disadvantaged individuals
• passive immigration schemes
• disguised business deals to purchase real estate
• overall benefit to the Canadian labour market and economy

Thus, when assessing whether your business is sale ready, you have to consider how attractive your business in the eyes of the immigrant investor. Moreover, per the immigrant investor's qualifications, which immigration strategy makes sense. Here are some factors that you will need consider for your immigrant investor.

• English requirements?
• conditional purchases advisable?
• pre-existing immigration issues: e.g. rejected visas?
• net worth verification required?
• family member sales allowed?
• hiring family members allowed?

This is where an licensed immigration professional, such as a Regulated Canadian Immigration Consultant, can make a huge difference to demystify complex immigration rules into a win-win arrangement for all involved parties.

Don't hesitate, contact us today!

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Are you ready to sell your business or give up equity?

So you got a business to sell?

There are many reasons why one may want to move on from their business. 

• no obvious heirs and/or successors
• no longer interested
• retirement
• health reasons

Selling a business is both a very calculated, yet emotionally charged decision.  You will want to assess several factors before committing to a sale.

• future plans: e.g. family planning?
• Am I willing to forego majority control?
• who will be kept on?
• legal entanglements: e.g. licensing arrangements, contracts, etc.?
• financing options, e.g. seller financing?
• how will the money be held?
• control of assets, liabilities, and equity?

When you are ready for a sale, engaging a knowledgeable business broker can help you secure a reasonable price and attract the right people. Have outstanding legal and tax issues? You'll want to find a good lawyer and accountant. We can arrange professionals for this purpose.

While most business sales occur locally, foreign buyers may just as interested too. But even  if you find a interested foreign buyer, they might want to immigrate with an ineligible business. 

Interested in learning more? Contact us today!