NLPNP International Entrepreneur

The Newfoundland and Labrador International Entrepreneur Stream is designed for foreign individuals wishing to settle in the province in order to establish, co-manage or purchase a business.

Overview

Entrepreneurs accepted under this stream of theNewfoundland and Labrador Provincial Nominee Program (NLPNP)receive a temporaryWork Permitin order to establish and operate their business.

Candidates in the Newfoundland and Labrador International Entrepreneur Stream need at least 1 year of experience actively owning and operating a business in Newfoundland and Labrador before pursuing a provincial nomination.

The first step in applying to this stream is to submit an expression of interest (EOI) to the Newfoundland Office of Immigration and Multiculturalism. Note that an EOI is not an application but a way for an individual to inform the Government of Newfoundland of their wish to be considered for an Invitation to Apply to the programme.

Requirements for the candidate

To be eligible under this stream, an international entrepreneur must:

• Be aged between 21 and 59
• Demonstrate English or French proficiency equivalent toCanadian Language Benchmark (CLB)5 in speaking, listening, reading and writing
  • The accepted tests for English areCELPIPGeneral orIELTS General Training
  • TEF
• Have CAD 600,000 in unencumbered business and personal assets that can readily be transferred to Newfoundland and Labrador
• Score 72/120 on the expression of interest (EOI) assessment grid
• Be able to invest at least CAD 200,000 of their own money to establish a business in Newfoundland and Labrador with a minimum 33.3% ownership, or CAD 1,000,000 in equity investment
• Have at least 2 years of experience actively managing and owning a business (minimum 25% ownership) in the past 5 years, or more than 5 years of experience in a senior business management role in the past 10 years
• Provide a business plan with the required supporting financial documents verified by accredited third-party professionals
• Have at least a Canadian high school diploma or the equivalent verified by aneducational credential assessment (ECA)report within the 5 years before the EOI is submitted
• Demonstrate an intention to settle permanently in Newfoundland and Labrador while owning and actively managing a local business with the potential to generate significant economic benefit for Newfoundland and Labrador
• Demonstrate the ability to create at least one full-time equivalent job for a permanent resident or Canadian citizen in the province
• Demonstrate that the business is a for-profit entity whose primary purpose is to earn a profit through the sale of goods or services
• Make a mandatory exploratory visit to Newfoundland and Labrador before starting a new business or purchasing an existing one;
• Submit a complete expression of interest (EOI) online
• Receive an Invitation to Apply from the Newfoundland and Labrador Office of Immigration and Multiculturalism

Starting a new business

When starting a new business, the candidate must create a minimum of one year-round full-time equivalent job opportunity for a Canadian citizen or permanent resident in Newfoundland and Labrador.

This job must:

• Be in addition to any position held by the approved candidate. For the avoidance of doubt, jobs created for or held by a dependant or relative of the candidate are not eligible
• Be related and directly connected to the candidate’s business
• Meet the prevailing wage in the province

Purchasing an existing business

When purchasing an existing business in Newfoundland and Labrador, all of the following apply:

• The candidate must provide evidence that reasonable efforts were made to determine the fair market value of the business;
• The candidate must make an exploratory visit to meet the current owner where applying from outside the province;
• The business must have been operated continuously by the current owner for the previous five years;
• The business must be actively trading and not in bankruptcy;
• The candidate must offer employment on similar terms and conditions to existing employees, including maintaining existing wages and working conditions.

Partnerships

An international entrepreneur may propose up to 10 partners (that is, the principal applicant and nine (9) additional partners) when applying. Partners may be other international entrepreneurs, Canadian citizens or permanent residents. Where the partners are also seeking permanent residence in Canada through this category, they must:

• Invest CAD 200,000 and own at least one third (33.3%) of the company, or must invest CAD 1,000,000 or more.

Participating partners must also demonstrate active involvement in the day-to-day management of the proposed business.

Requirements for the business

The international entrepreneur’s proposed business must:

• Meet the legal requirements of the community in which the business operates
• Be a for-profit entity whose primary purpose is to earn a profit through the sale of goods or services
• Be considered a “permanent establishment” as defined in subsection 400(2) of the Canadian Income Tax Regulations, 1985
• Pay income tax on taxable income earned from a “permanent establishment” in Newfoundland and Labrador, regardless of income or other taxes that may be payable in other jurisdictions as a result of income earned or other business activity
• Be actively managed by the candidate from the business premises in Newfoundland and Labrador. The business must not be managed from another location in Newfoundland and Labrador or from another Canadian province or territory or another country
• Have the potential to generate significant economic benefit for Newfoundland and Labrador, for example:
  • Increasing value-added manufacturing or processing, exports, destination tourism, research and development, and technology commercialisation
  • Developing innovative approaches to traditional businesses
  • Transferring technology and specialist knowledge to Newfoundland and Labrador
  • Providing products or services to an underserved local or regional market

Ineligible businesses

The following types of business are not eligible under the NLPNP:

• Businesses operated remotely (from another Canadian jurisdiction or from another country)
• Property rental, investment and leasing operations
• Construction/development/real estate brokerage, insurance brokerage or business brokerage; unless the applicant can demonstrate that their business activity in one of these fields brings practical benefit to the province and can demonstrate the ability to manage the day-to-day operation of the business; professional services or self-employed business operators requiring licensing or certification
• Payday lending, cheque cashing, currency exchange and cash machines
• Professional services or self-employed business operators requiring licensing or certification
• Pawnshops
• Taxi companies
• Home-based businesses; unless the applicant can demonstrate that their business activity will bring practical benefit to the province
• Businesses involved in producing, distributing or selling pornographic products or services or products with pornographic content
• Not-for-profit businesses
• Investments in a business operated primarily for the purpose of generating passive investment income
• Businesses operated primarily for the purpose of generating investment income such as interest, dividends or capital gains
• Businesses that pay employees on a commission-only basis
• Any other type of business whose association with OIM, the NLPNP or the Government of Newfoundland and Labrador would tend to bring them into disrepute

The expression of interest (EOI) points system

An EOI is not an application, but a way for a prospective candidate to express their wish to take part in the International Entrepreneur Stream.

The Newfoundland and Labrador Office of Immigration and Multiculturalism holds periodic draws and issues Invitations to Apply (ITAs) to submit a full application to the NLPNP. On completing an EOI, prospective candidates are scored on the basis of the answers they provide.

The EOI score is based on the International Entrepreneur Stream’s own points assessment grid. The total score determines whether the candidate receives an ITA under the International Entrepreneur Stream.

The International Entrepreneur Stream EOI points grid

Prospective candidates may claim points under 6 factors: language, education, business ownership experience, Newfoundland and Labrador economic priorities, age and adaptability. Candidates must score 72 points to be eligible. The maximum score attainable is 120 points.

Factor	Points
Age	12
Language	32
Education	30
Business ownership experience	24
Newfoundland and Labrador economic priorities	12
Adaptability	10
Maximum total score	120

Age

Age range	Points
21-30	10
31-40	12
41-50	8
51-59	4
60+	0

Maximum points: 12 points

Documents required include: birth certificate; passport; national identity document.

Language

Prospective candidates must demonstrate language proficiency test results from IELTS General, CELPIP General or TEF.

First official language	Speaking	Nghe	Reading	Writing	Total
CLB level 7 or above	6	6	6	6	24
CLB level 6	5,5	5,5	5,5	5,5	22
CLB level 5	5	5	5	5	20

Second official language	SpeakingPoints awarded	Total
CLB level 5 or above	2 points for each skill	8

Maximum points: 32 points

Education

Level of education	Points	Documents required
A completed doctoral (PhD) degree	24	Transcripts; degree/certificate; a letter from the university confirming completion of the PhD;Educational credential assessment (ECA) report
A completed master’s degree	20	Transcripts; degree/certificate; ECA
A completed post-secondary degree or certificate of two (2) years or more	15	Transcripts; degree/certificate; ECA
A Canadian high school diploma or an equivalent foreign credential	12	Transcripts; degree/certificate; ECA
A completed Canadian post-secondary degree or certificate of two (2) years or more	6	Transcripts; degree/certificate

Maximum points: 30 points

Business ownership experience

Prospective international entrepreneur candidates may claim points for business ownership experience. All prospective candidates must have a minimum of 2 years of business ownership experience in the past 10 years (including a minimum 25% ownership) and an active role in the management and operation of the company, or more than 5 years of experience in a senior management role in the past 10 years.

Individuals claiming 5 years or more of senior management work experience must demonstrate that their work experience is in an occupation corresponding toNational Occupational Classification (NOC)skill type 0, level A or B.

Reference letters from previous employers may be used as evidence of this experience. However, the reference letters must meet the programme’s requirements.

Ownership experience	Points
Business ownership of 3 years or more	15
Business ownership of 2 to 3 years	5
Senior management experience of more than 5 years	9

Maximum points: 24 points

Documents required include: CV; business registration/licence; tax registration; reference letters; employment contracts; payroll or salary records; income certificates; income statements

Newfoundland and Labrador economic priorities

Economic priorities	Points
A business in technology, agriculture, aquaculture or natural resources	8
A business in a field not listed as a priority above	4
A business in a rural area (outside the St. John’s CMA)	4

Maximum points: 12 points

Documents required: incorporation documents; evidence of registration with the CRA; industry-specific licences; other evidence as required

Adaptability

Level of education	Points	Documents required
A relative in Newfoundland and Labrador	6	Evidence of status (PR card, passport); evidence of relationship; evidence of residence (bills, tenancy agreement, letters from employers)
Previous work experience in Newfoundland and Labrador of two (2) years or more (a contract of service, that is, salaried employment)	4	Reference letters from previous employers
Previous work experience in Newfoundland and Labrador of one (1) to two (2) years (a contract of service, that is, salaried employment)	2

Maximum points: 10 points

Invitation to Apply

Submitting an EOI does not guarantee that a candidate will be invited to apply to the NLPNP International Entrepreneur Stream. If a candidate is invited to apply, they receive an ITA letter from the NLPNP. Where an ITA is issued, the candidate must meet the following deadlines:

• 20 days from receipt of the ITA:
  • Choose a designated Net Worth Verifier and notify the NL Office of Immigration and Multiculturalism.
• 90 days from receipt of the ITA:
  • Submit a complete application;
  • Provide all the required supporting documents; and
  • Submit the Business Establishment Plan.
• 180 days from receipt of the ITA:
  • Submit the Net Worth Verification Report.

The business establishment plan

The Business Establishment Plan must include the following:

• The candidate’s plan to establish the business, aligned with the programme’s points assessment grid.
• The percentage of equity ownership and the amount invested in the business for both the principal candidate and any partners.
• The candidate’s commitment to:
• Be actively and continuously involved in the day-to-day management and operation of the business at the business premises; and
• Create at least one job opportunity for a Canadian citizen or permanent resident in Newfoundland and Labrador (the employee must not be a relative) where applying under the new business stream; or
• Offer existing employees terms and conditions similar to those they currently enjoy, including maintaining existing wages and working conditions, where applying under the purchase of an existing business stream.
• Details of the mandatory exploratory visit to Newfoundland and Labrador.

The processing time for a complete application depends on the time needed to verify documents and on the volume of applications received. All applications are assessed against the International Entrepreneur Stream eligibility criteria and the candidate’s EOI points assessment. Candidates who are not eligible may submit a new EOI in future once they meet the programme criteria.

Interview and business performance agreement

The candidate must attend an in-person interview with an officer of the NL Office of Immigration and Multiculturalism. The candidate is responsible for all arrangements and costs relating to the interview trip.

If the candidate passes the interview successfully, a Business Performance Agreement is sent to the candidate. The Business Performance Agreement is the candidate’s legal agreement with the Government of Newfoundland and Labrador and sets out the commitments required in order to be nominated for permanent resident status.

The Business Performance Agreement also lists any information relevant to the application, including but not limited to: job creation, business succession, an active role in managing the business, and the business location.

Work permit and establishing the business

Once the candidate is approved, the NLPNP issues an International Entrepreneur Approval Letter and instructions for applying toImmigration, Refugees and Citizenship Canada (IRCC)for a temporary work permit.

The work permit allows the candidate to settle in Newfoundland and Labrador and to operate and actively manage the business. Successful candidates must arrive in the province on a valid temporary work permit issued by IRCC within six (6) months of the date of the International Entrepreneur Approval Letter.

After arriving in Newfoundland and Labrador, the candidate must meet an NLPNP officer within 30 days to receive guidance and information on establishing the business and settling in Newfoundland and Labrador.

Nomination request

The candidate must operate and actively manage their business for a minimum of one year before submitting a Nomination Request. To be considered for nomination, the candidate and their dependants must be living in the province. The NLPNP also assesses whether the candidate has carried out the terms set out in the Business Performance Agreement, including transferring the required funds to Canada and maintaining legal status in Canada.

If successfully nominated by the Government of Newfoundland and Labrador, the candidate will need to provide an Audit Opinion and a Special Purpose Report at six (6) month intervals from the date of nomination until the candidate obtains permanent resident status with IRCC.

The Audit Opinion covers the audit of the business’s financial statements. The Special Purpose Report gives an opinion on the following matters:

• The financial viability and sustainability of the business, discussing any relevant issues affecting the business’s ability to continue operating in the near future as a going concern
• Recommendations for the business to improve its viability and sustainability
• Identification of any issues, challenges or concerns relating to the audit of the financial statements
• An assessment of the business, which may include but is not limited to: market analysis, product analysis, competitive analysis, and financial analysis.

The nominated candidate is entirely responsible for submitting a complete application for permanent residence in Canada to IRCC within 6 months of receiving the Nomination Letter.

Federal eligibility requirements, including security and medical background checks, apply at this stage.

Who is not eligible

• Individuals living unlawfully in their country of residence
• Those who have been issued a removal order by IRCC or the Canada Border Services Agency
• Those who are inadmissible to Canada
• Passive investors (individuals who intend to invest in a business in Newfoundland and Labrador with very limited or no involvement in the day-to-day management of the business)
• Individuals with no legal status (not eligible to apply until their status is restored).