Immigrating to New Brunswick: Operate a business or not?

“What if I fail to operate business after two years landing?”

There is a common question raised among applicants for New Brunswick Provincial Nominee Program whether they must operate a business in New Brunswick after two years landing in Canada.

When immigrants first arrive in New Brunswick, they have to sign the agreement called Deposit Agreement between New Brunswick Province and Immigrants, which is stated that:

  • Both parties recognize that New Brunswick has particular needs and circumstances, and that New Brunswick is best positioned to determine the specific needs of the province vis-à-vis immigration. Both parties further agree that these needs can be accommodated insofar as they are not incompatible with national immigration policy (as stated below);
  • New Brunswick has the sole and non-transferable responsibility to assess and nominate candidates who, in New Brunswick’s determination:

a)      will be of benefit to the economic development of New Brunswick; and

b)      have a strong likelihood of becoming economically established in New Brunswick

Becoming economically established means you need to start your business after being accepted in Entrepreneur Program.

  • Provincial Nominee applicants may be nominated on the basis of economic benefit to New Brunswick, including long-term regional growth and community development.
  • Upon receipt of the Certificate of Nomination from New Brunswick, Canada will:

a)      exercise the final selection; 

b)      determine the admissibility of the nominee and his or her dependents with respect to legislative requirements including health, criminality and security; and

c)      issue immigrant visas to provincial nominees and accompanying dependants who meet all the admissibility requirements of the Immigration and Refugee Protection Act and Regulations and of this Annex.

At the Federal level, Citizenship and Immigration Canada (CIC) is responsible to make the final decision to grant the Certificate of Nomination for immigrants, NOT New Brunswick.

  • Canada will consider a nomination certificate issued by New Brunswick as a determination that admission is of benefit to the economic development of New Brunswick and that New Brunswick has conducted due diligence to ensure that the applicant has the ability and is likely to become economically established in New Brunswick.
  • Subject to applicable legislation and polices governing the disclosure of personal information, Canada and New Brunswick agree to share information on prospective and actual immigrants so as to maximize the effect of recruitment and retention efforts. This will include tracking of provincial nominees to New Brunswick for a minimum of three years from their date of entry, as a basis for assessing the effectiveness of targeted recruitment and integration and retention activities. Based on the strict controlling activities of Federal Government, they will know whether applicants operate the business and then make their decision based on the case(s).

Based on the information above, it is really dangerous if immigrants fail to operate a business after two years of landing. As stated in New Brunswick Immigration policy, applicant who fails to do so, have to make extension request to New Brunswick officers, which will be transfered to the Government of Canada. The Government will then base on the recorded activities during two years in accordance with the National Immigration Policy and New Brunswick Immigration Policy to make the final decision whether or not to remove the PR visa of applicants. Upon the final decision is make, the New Brunswick Government will retain the deposit of $75,000. If applicants are not rejected, New Brunswick will keep the $75,000 deposit but if applicants are rejected by the Federal Government and their visas are removed, New Brunswick will give back the deposit.

You can find information regarding to the National Immigration Policy and New Brunswick Immigration Policy below:

National Immigration Policy

Sect 6 art 70(1)

(b)   The foreign national is coming to Canada to establish permanent residency

(c)    The foreign national meets the Selection Criteria and requirements

We can find the requirements under IMMIGRATION & REFUGEE PROTECTION REGULATIONS – SOR /2002/227; amended on November 17, 2011:

Art (98)

(a) entrepreneur must control a percentage of the equity equal or greater than 33 1/3% (except for Quebec 25%)

(b) entrepreneur must provide active and ongoing management into Canadian business

(c) The entrepreneur must meet the conditions for a period of at least 1 year.

The law also refer to agreement done with a province, if applicable (and it will be the case with New-Brunswick PNP).  Normally, the agreement with a Province will contain more detail and the Federal Government can refer to this agreement also to make a decision.

New Brunswick Immigration Policy

In the step 8 of New Brunswick Immigration Policy:

“Establish your business and fulfill the investment requirements as outlined in the Deposit Agreement. Until the business is established you must provide bi-annual updates on the status of your business.”

The Deposit Agreement between Province and applicants specifies the terms and conditions of applicants agreement to make a financial investment in a business in New Brunswick.

Conditions of New Brunswick Provincial Nomination Program

Applicant’s business is established within two years of landing in Canada.

  • Your business is registered or incorporated.
  • You provide proof that a minimum $125,000 CAD business investment has been made.
  • You have assumed a day-to-day managerial role in the business.
  • Your business has been operating for one year.

So it is a totally false information if a consultant tells you that you can just make a deposit (or payment) of 75 000$ CAD and getting the PR without opening a business.

We invite you to report this kind of behavior to Canadians authorities because some immigrant could be penalized with this kind of information.

How do I report Internet or e-mail scams and fraud?

In Canada, you can report Internet fraud or other scams by contacting the Canadian Anti‑Fraud Call Centre.
Toll-free: 1-888-495-8501                      Overseas and local: 1-705-495-8501
Toll-free fax: 1-888-654-9426

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