Immigrating to Canada through investment is one of the most attractive pathways for international entrepreneurs and investors seeking new opportunities in one of the world’s most dynamic economies. This program allows applicants to obtain permanent residency in Canada by investing in Canadian businesses or creating employment opportunities in the country.
The requirements for an investment visa include criteria such as a minimum investment amount, business management experience, and financial capacity to support the investment in Canada. Additionally, applicants must demonstrate the ability to successfully manage a new or existing business and contribute to economic growth and job creation in Canada.
Canada’s various investment visa programs offer extensive opportunities for entrepreneurs, guiding them toward success in the country.
Conditions for Investing in Canada
Investing is one of the fastest ways to obtain Canadian citizenship. This method not only grants you residency but also allows you to establish a business and start generating income in any province of your choice within Canada.
Canada’s membership in global unions, economic stability, access to free markets, high employment rates, simple business regulations, and significantly lower tax rates compared to many other countries make it an excellent investment opportunity. The Canadian government has implemented various programs to attract more foreign investors and facilitate their immigration process.
If you have sufficient capital and take the right steps, you can not only expand your business and increase your income but also secure permanent residency and eventually Canadian citizenship more easily than through other methods.
The key conditions for investing in Canada include:
Requirements for Investing in Canada
Sufficient Capital: To immigrate to Canada through investment, you need a minimum initial capital that is separate from your proof of funds and living expenses. This amount, which will be detailed further, must be fully invested in the business you plan to run in Canada.
Financial Capability: To immigrate to Canada through investment, you should have between CAD 150,000 and CAD 800,000 in financial resources, sufficient to cover living expenses for yourself and your family.
Net Worth: Some Canadian investment programs require you to prove a net worth of CAD 1.6 million. However, this amount may vary slightly depending on the specific program.
Work Experience: Individuals looking to immigrate to Canada by purchasing or starting a business must have at least 3 to 5 years of continuous work experience in a related managerial position. However, depending on the type of business, the relevance of work experience may be less critical.
Clean Criminal Record: To take advantage of this immigration program, you must have a completely clean criminal record.
Language Skills: Although some Canadian investment immigration programs do not require language proficiency, it is generally advisable to have at least an intermediate level of English or French to avoid difficulties. Many investment immigration programs require an IELTS score of 5 or 6.
Note: While some investment immigration programs require a language proficiency certificate, the maximum English language level requested is typically 6.5. This means that if your English is not strong, you don’t need to put in a lot of effort to improve it.
Age Requirements: To obtain an investment visa for Canada, you must be at least 18 years old. However, some immigration programs require a minimum age of 21. One of the advantages of investment immigration is that there is no upper age limit for applicants. Some programs even set the minimum age at 55 years!
Also Read: Converting a Canadian Tourist Visa to a Work Visa 2024
Canada Investment Visa
There are generally three main ways to immigrate to Canada, one of which is through investment. Canada offers special incentives for active investments, one of which is the granting of a visa. This has led many individuals with the necessary financial resources to pursue Canadian residency through this method.
The Canada Investment Visa is considered one of the easiest ways to enter the country. Although the process might take some time, it usually involves less risk and effort. Money can solve many problems, and in the path of immigration, it can also smooth your way.
Many countries offer visas and residency through investment, but what makes Canada unique in this regard is the low minimum investment amount and the numerous benefits provided in return. Those who enter Canada on an investment visa can bring their spouse and children under 22 from day one. Family members are also allowed to work immediately to help cover expenses while the business is fully established.
Required Documents for Investing in Canada
To immigrate to Canada through investment, you need to prepare the required documents and submit them along with your application to the Canadian immigration office. Keep in mind that in most cases, the reason for rejection of immigration applications is incomplete documentation, and the embassy may not notify you of this issue.
Therefore, it is essential to consult with an experienced immigration lawyer to ensure that your documents are complete before submitting them to the embassy without any omissions.
Generally, the most important documents you need to immigrate to Canada through investment include:
- Proof of Net Worth: Documents such as bank statements, investment portfolio summaries, property deeds or lease agreements, and financial records.
- Work Experience Documentation: Tax records, pay stubs, and official reference letters from previous employers.
- Investment Fund Documentation: Evidence that you possess the necessary funds for investment.
- Business Plan: A detailed business plan that outlines your proposed business in Canada and the positive economic impact it will have on the market.
- Proof of Financial Support: Documents that demonstrate your ability to cover living expenses for at least the first one to two years.
- Identity Documents: A valid passport with at least six months of validity remaining, and translated birth certificates.
- Medical Clearance: Health certificates for yourself and your family members.
- Criminal Background Check: A certificate proving a clean criminal record.
- Completed Canada Investment Visa Application Forms: All necessary forms required for the visa application process.
- Proof of Seriousness in Investment: Actions such as pre-leasing business property, signing a contract to purchase shares in a Canadian business, or making other preparations that demonstrate your commitment to investment. These steps can significantly increase your chances of obtaining the visa.
Timeline for Obtaining a Canada Investment Visa
The favorable conditions for immigrating to Canada through investment have led to a large number of foreign applicants each year seeking to use this method. Therefore, it is essential to carefully complete the application process and include multiple added values in your file to increase your chances of obtaining the visa.
Those who have already made preparations for purchasing or starting a business usually have a better and faster chance of obtaining a Canada Investment Visa.
The timeline for obtaining this visa can vary depending on the type of visa and your specific circumstances. For instance, obtaining a Self-Employment Visa can take up to 23 months, while the Canada Startup Visa might take 24 to 36 months. The processing time for an Entrepreneur Visa can range from 6 months to 2 years, depending on the province.
Types of Investment in Canada
Canada has designed various programs for granting investment visas. Generally, investment for obtaining a Canadian visa is categorized into nine types, which include:
- Starting a Startup
- Starting a Business
- Purchasing an Existing Business
- Buying a Franchise
- Purchasing Property
- Provincial Investment
- Buying Bonds
- Self-Employment
- Work-Company
We will provide detailed explanations for each of these investment immigration methods below.
Investing in Canada Through Startups and Innovation
To obtain a Canadian visa through investment in a startup, you need to have an innovative and creative business plan. Typically, startups involve new businesses with innovative ideas, often in the technology sector.
Individuals looking to immigrate to Canada through a startup visa must prepare a strong and justifiable business plan and present it to Canadian-approved institutions or organizations. These organizations, known as “angel investors,” support startup businesses. If your business plan is approved, these organizations will allocate a specific budget for investment based on the potential of your plan and provide you with an official letter of support.
With this letter of support and the endorsement of your startup by the relevant organization, you can obtain a visa to enter Canada for yourself and up to five other team members, along with their family members.
The Canadian government plans to triple the budget for supportive organizations by 2025 and to implement new facilities in the startup visa regulations. This includes potentially transitioning the startup visa from a closed to an open category and extending its validity period.
As a result, unlike in the past, those entering Canada on a startup visa can engage in other job positions based on their skills and earn income while running their business. Additionally, the validity of their visa will be extended from 1 to 3 years.
To obtain a Canadian startup visa, you do not need initial capital but must provide proof of financial capability and language proficiency (at least IELTS 5). The key to success in obtaining this visa is presenting a compelling, clear, and strong business plan.
This method is suitable for individuals who wish to immigrate to Canada with a lower initial investment.
Investing in Canada Through Property Purchase
The international property market in Canada is relatively young with significant growth opportunities. Investing in this market can yield substantial profits.
However, it is important to note that the Canadian government does not grant visas for passive investments. In other words, purchasing property or real estate in Canada alone will not grant you a visa or permanent residency.
Nonetheless, many individuals who obtain entry visas to Canada through business investments have sufficient financial resources to purchase property upon arrival and prefer to buy their home before entering the country so they can move directly to their new home upon arrival.
You can purchase property in Canada from within Iran through an immigration lawyer. This process typically takes between 30 to 90 days. A crucial point to remember is that Canada imposes a 25% tax on the value of the property when sold by individuals who do not hold Canadian citizenship.
Provincial Investment in Canada
Canada is a country governed on a provincial basis, meaning that while it has a central federal government, each province implements its own specific laws. This results in varying investment immigration programs and requirements across different provinces.
The amount required for investment in more remote provinces and smaller cities is generally lower. However, the minimum investment amount increases for larger and more significant cities. For instance, Toronto, Vancouver, and Quebec are among the most expensive cities for investment in Canada, with initial investments potentially exceeding CAD 1 million based on your business plan.
Therefore, it is advisable to start with smaller cities if you plan to immigrate to Canada through investment and consider moving to cities like Toronto or Vancouver after obtaining permanent residency.
The age, educational qualifications, and language proficiency requirements also vary by provincial program. Generally, with a diploma, an age range of 35 to 55 years, and English language skills at CLB 5, you can qualify for a Canadian investment visa. Most provincial programs also require at least 2 years of full-time managerial work experience within the last 5 years.
Investing in Canada Through Government Bonds
You can obtain a Canadian investment visa by purchasing government bonds. These bonds can be bought directly through the Toronto Stock Exchange (TSX) or the Canadian Securities Exchange (CSE), as well as through exchange-traded funds (ETFs) or American depositary receipts.
Although purchasing government bonds can be a route to obtaining a Canadian visa, the Canadian government has imposed many restrictions since 2017, making these bonds less accessible to many foreign nationals. As a result, the success rate for obtaining a visa through this method is quite low, and it is advisable to consider other investment options.
Purchasing a Franchise in Canada
Purchasing a franchise is one of the best investment immigration options in Canada, as it allows you to start your business without beginning from scratch.
A franchise purchase is similar to what we refer to in Iran as acquiring a representation. Instead of starting a new business and building a brand from the ground up, you enter into an agreement with an established Canadian brand and open a new branch. For example, you might start a new McDonald’s fast-food outlet.
By choosing this route, the parent company provides you with a comprehensive manual outlining all the procedures and requirements you must follow. These guidelines are essential for maintaining the brand’s reputation. Therefore, you can avoid trial and error and start your business based on an effective manual.
Additionally, your customer base will be secured, as customers will visit your restaurant not because of your personal reputation or the store itself, but due to the credibility of the parent company (in this example, McDonald’s). As a result, you will spend less on advertising and avoid prolonged periods of uncertainty.
Franchise-based entrepreneurship immigration programs are among the most attractive visa options for Canada, offering potential for substantial income in a relatively short time. However, when selecting a franchise for representation, consider the following:
- Ensure you have the necessary skills and interest in managing such a business.
- Consult with other franchisees of the brand to learn from their experiences.
- Review several franchise options in the same industry before making a final decision.
- Assess the reputation and credibility of the franchise brand.
- Consult with a Canadian immigration lawyer and a financial advisor beforehand.
Also Read: Work Immigration to Canada 2024
Starting a Business in Canada
One of the most common ways to immigrate to Canada through investment is by starting a new business or registering a company. Many individuals looking to immigrate to Canada for investment purposes, especially those with strong management experience, prefer to start a new business in the country.
The Canadian government offers permanent residency visas to foreign investors who plan to establish a new business and engage in entrepreneurship, allowing them to bring their spouse and children under 22 years old along.
To obtain a Canadian visa through starting a new business, you first need to convince Canadian immigration experts with a robust business plan that your business will benefit the Canadian economy. The benefits your business can provide to the economy are often categorized under cultural benefits, job creation for local workers, or introducing new technology, among others. You must be able to demonstrate these benefits effectively.
Another crucial factor is having the personal capital required to start a new business. In Canada, depending on the city, province, and type of business, you will need a minimum of CAD 50,000 to CAD 200,000 in net investment capital. In addition to this amount, you should have between CAD 400,000 and CAD 800,000 as financial backing to cover living expenses for the first one to two years.
In some cities, the minimum required net investment capital can be as high as CAD 1.2 million!
The process of obtaining a Canadian visa through starting a new business typically takes between 6 months to a year and has specific prerequisites. Taking initial steps and entering into formal pre-contracts can further demonstrate your commitment to investment, potentially increasing your chances of obtaining the visa.
For this immigration route, you must have at least 2 years of relevant managerial experience in the past 5 years and English language skills at a minimum of IELTS General Band 5. Although the minimum required educational qualification for this immigration program is a diploma, having a higher educational degree can add more value to your application for certain businesses.
Investing in Canada through Buying an Existing Business
To own a business in Canada and immigrate through it, you don’t necessarily have to start a new business from scratch or buy a franchise. Instead, you can purchase either the entire company or a substantial portion of its shares.
In this approach, rather than buying or leasing property, purchasing equipment, starting marketing from scratch, and acquiring customers, you find an existing business in Canada and buy its shares. Although it is preferable to purchase 100% of the business shares, owning at least 51% of the shares can also qualify you for a Canadian visa.
Investing in an active business in Canada can have its own complexities, but achieving profitability is generally easier than starting a new business from scratch.
While buying an existing business might be more straightforward in terms of operations and income, it can be more costly compared to starting a new venture. You will need to separately cover the costs of all existing equipment, pay for brand rights, and assume the responsibility for employee salaries. However, this method offers greater income potential and provides opportunities for quicker revenue generation to offset these costs.
Key Considerations for This Immigration Method:
- Having a Strong Business Plan: To persuade immigration officers to approve your visa application, you need a robust business plan with well-defined financial and revenue-generating strategies.
- Researching the Business: It is crucial to thoroughly investigate the business you intend to purchase and verify its claims. Hiring a financial expert to conduct a detailed review of the business and provide a comprehensive report to ensure the security of your investment is essential.
- Securing Financing: Adequate capital is necessary for obtaining a Canadian visa through this method. Therefore, you should always have documentation related to your net worth, financial capability, and gross capital readily available to present if needed.
- Providing a Purchase Agreement: A formal purchase agreement and clarification of the type of collaboration are required before submitting your visa application. Proof of business acquisition is a key document that immigration officers will scrutinize.
- Securing Legal Documents: Your legal documents, including ownership papers, tax records, and immigration-related documents (educational, work history, etc.), must be complete and flawless when submitted to the embassy.
Investing in Canada Through Self-Employment
Contrary to what many believe, self-employment is also considered a form of investment immigration to Canada. With this method, you can obtain a self-employment visa based on points awarded for factors such as age, language skills, educational background, area of expertise, and work experience.
The Canadian self-employment visa program is primarily run by the federal government and is mainly aimed at professionals in the fields of agriculture, arts, and sports.
However, the criteria for obtaining a self-employment visa in the province of Quebec differ from those set by the federal government and include additional parameters for evaluating the applicant’s conditions.
Individuals who obtain a visa through this route can receive permanent residency in Canada with minimal initial capital, relying solely on their financial capability, and work in their specialized field. Note that this method does not offer additional benefits.
Work-Company Program in Canada
The Work-Company program is one of the most affordable and fastest methods for investment immigration to Canada. In this method, the applicant owns an active business in Iran and establishes a related and dependent business in Canada. Individuals using this route must have owned a business or held a managerial position in that business for at least one year.
The acceptance condition is that the business in Iran must be active and generate revenue, and the Canadian business must have a direct connection with it, operating as a foreign branch. Those investing in Canada through this method not only receive visas for themselves and their family members but also have the option to transfer other employees and obtain visas for them later.
Applicants using the Work-Company method for immigration to Canada receive a temporary residency of 5 to 7 years, during which they can transition their visa to one of the work immigration programs (such as Express Entry or provincial immigration programs) to obtain permanent residency.
The major advantage of this method is that it requires a relatively small investment (about CAD 50,000 to 100,000) and does not require proof of language proficiency.
Minimum Investment Amounts in Canada
Canada is known for offering pathways to permanent residency with relatively low investment amounts compared to other countries. While the minimum investment amount in countries like the United States starts at $1 million, Canada can offer visas and permanent residency with as little as CAD 50,000.
The minimum investment amount in Canada varies depending on the type of investment, province, and city you choose. For instance, in the startup visa program, the minimum initial investment required is CAD 75,000. Conversely, in some cities in Ontario, you can start a business and obtain permanent residency with an investment of around CAD 50,000.
On the other hand, the province of British Columbia has introduced a CAD 100,000 immigration program to attract more foreign investors and provide permanent residency with this amount. To determine the exact minimum investment required, you should review the specific provinces and business plans.
Below is a general overview of the minimum amounts needed for investment in various provinces of Canada to obtain a visa:
| Province | Minimum Financial Capacity (for living expenses) | Minimum Net Worth (amount to be fully invested in the business) |
|---|---|---|
| Alberta | CAD 500,000 | CAD 300,000 |
| Saskatchewan | CAD 550,000 | CAD 300,000 (CAD 200,000 for smaller cities) |
| Ontario | CAD 400,000 | CAD 200,000 (CAD 600,000 for Toronto) |
| British Columbia | CAD 600,000 | CAD 200,000 (CAD 100,000 for smaller cities) |
| Quebec | CAD 2 million | CAD 1.2 million |
| Prince Edward Island | CAD 600,000 | CAD 150,000 |
| Manitoba | CAD 500,000 | CAD 250,000 (CAD 150,000 for smaller cities) |
| Nova Scotia | CAD 600,000 | CAD 150,000 |
| New Brunswick | CAD 500,000 | CAD 150,000 |
| Newfoundland and Labrador | CAD 500,000 | CAD 200,000 |
Best Investments in Canada
To make a smart investment in Canada and ensure it generates income in the future, it’s best to invest in one of the following sectors. These industries are showing upward trends and have the potential to provide significant returns in the near future:
- IT and Information Technology – such as software companies, artificial intelligence, and cybersecurity.
- Medical Equipment – manufacturing and selling the latest medical technologies.
- Food Industry – starting a restaurant, food and beverage production.
- Clean Energy – investing in companies active in solar, wind, and hydroelectric energy.
- E-commerce – launching online stores, cryptocurrency exchanges, etc.
- Green Industry – recycling, producing green products, and environmental protection companies.
- Video Game Development – companies designing and developing computer games.
- Health and Wellness – providing healthcare services or producing medical equipment.
The businesses mentioned above offer excellent financial returns and can help reduce investment risk.
Advantages of Investing in Canada
Investing in Canada offers several key advantages:
- Strong International Relations: Canada’s good relations with other countries make it an ideal environment for global trade and accessing top markets.
- Lower Costs: Government fees and labor costs in Canada are generally lower and more cost-effective compared to countries like the USA.
- Skilled Workforce: Canada benefits from a highly skilled workforce, either trained locally through its excellent educational system or as top international talent.
- Safe Investment: Investing in Canada is one of the safest and best ways to obtain a visa and permanent residency.
- Direct Financial Returns: Investments in Canada are considered capital rather than expenses, potentially providing direct financial benefits.
- Fast Track to Residency: Investment is the quickest way to obtain permanent residency and even Canadian citizenship.
- Supportive Government and Banks: The Canadian government and banks offer excellent support programs (loans and financing) for foreign investors, assisting in achieving business success in the country.
Also Read: Canada’s Provincial Nominee Programs (PNP) 2024
Disadvantages of Investing in Canada
Investing in Canada is not without its drawbacks. Although these disadvantages are not likely to dissuade you from investing in the country, they are important to consider. The major disadvantages of investing in Canada are:
- High Minimum Investment: In some Canadian provinces, the minimum investment amount is quite high, and many individuals may find it unaffordable. For example, Quebec requires a minimum initial investment of CAD 1.2 million, which is a substantial amount, and it only grants permanent residency after 5 years. In contrast, you could invest as little as CAD 100,000 in certain European countries and obtain permanent residency much sooner.
- Geographic Distance: Canada is geographically distant from Iran and other Asian countries, making travel challenging and limiting access to high-potential Asian markets.
- Intense Competition: The Canadian market is highly competitive with many active companies. Succeeding among numerous established competitors can be neither quick nor easy.
- Strict Regulations: While Canada has lower taxes compared to some other countries like the USA, it enforces regulations rigorously. Any mistakes, especially concerning taxes and employee wages, can lead to significant problems.
Final Thoughts
Immigrating to Canada through investment is one of the best options available to you. Not only does Canada offer a relatively easier path to a visa through investment, but it also provides excellent opportunities for profit and income. A stable and dynamic economy, access to free markets, low tax rates, and a skilled, affordable workforce contribute to Canada’s unique investment opportunities.
In this article, we aimed to comprehensively address the topic of immigrating to Canada through investment and its various methods. We hope you find this information useful.
Frequently Asked Questions
What is the best method of investment in Canada?
The best method depends on individual criteria, but considering the initial investment amount required and ease of obtaining a visa, the top methods are, in order: Work-Company, Startup, and Entrepreneur programs.
What is the minimum investment amount required in Canada?
You can invest in Canada with a minimum of CAD 50,000 to CAD 100,000, though it is recommended to have at least CAD 150,000 in capital.
Can I obtain Canadian residency by purchasing land or property?
No, buying property alone will not grant you residency in Canada.
What is the age limit for obtaining a Canadian investment visa?
There is no specific age limit, but you must be at least 18 years old (or 21 in some provinces).
Can I work in my parent’s Canadian company and obtain a visa?
If one of your parents has established an active Canadian company with financial turnover, they can provide you with a job offer, which can help you obtain a Canadian visa.
