Minimum Investment for Job Creators Work Permit
| IRCC has updated the criteria for IMP C11. Please visit the updated article instead of the current page. |
Canada offers a unique work permit for job creators, IMP C11. This article explores the minimum investment for IMP C11 applicants. However, if you are not familiar with this program, read one of the following articles first:
Table of contents
- What is an acceptable investment?
- The minimum investment for IMP C11
- The minimum net worth
- Transferrable assets
- Do you need to transfer the investment to Canada?
- Conclusion
- Let us help!
What is an acceptable investment?
When you start a business, you may fund your business in different ways. Of course, for a startup business, some of these options are not available:
- Your own money
- Money from other shareholders (if any)
- Bank loans
- Loans or investments by venture capital funds or angel investors
- Selling bonds or debentures.
- …
Regardless of other investment sources, the immigration officer prefers to see substantial personal investment by the applicant. Of course, you also need to own at least 50% of the business.
What is the minimum investment by a job creator?
The officers typically consider both the total investment in the business and the job creator’s contribution. Of course, the acquisition by the applicant is probably the most critical piece. However, there is no minimum investment by the job creator. Regardless, the investment could assist in contributing to the Canadian economy. It also needs to help Canadians or permanent residents of Canada secure job opportunities.
My personal preference is an investment of at least $100,000 by the applicant. However, this is a personal preference based on my experience with these cases. Investment alone does not guarantee success. Of course, it does not necessarily fail, either. Regardless, take it seriously.
The minimum net worth
The applicant’s minimum net worth shows whether they are capable of making the investment they have promised. Of course, you need to make sure you understand the concept of net worth. Generally speaking, net worth means all your assets minus your liabilities.
Examples of personal assets
Some examples of personal assets include the following:
- The money you hold in a bank account
- Your properties
- The market value of your existing businesses
- Publically traded stock shares
- Any pension or insurance plan that offers you a lump sum of money upon request
- Your vehicle
- Any other assets that belong to you
Of course, this list is neither inclusive nor exclusive. However, you may only present assets that you could prove their value and your ownership. When it comes to properties and businesses, you need to submit official appraisal reports on top of the title deeds and ownership documents.
Examples of personal liabilities
Some examples of personal liabilities include the following:
- Mortgages you have received for purchasing your properties
- Personal term loans
- Debt on credit lines or credit cards
I must emphasize this list is neither inclusive nor exclusive. However, you need to present documents to support your claims about your liabilities.
Transferable assets
When you calculate your net worth, make sure to calculate transferrable assets too. Generally speaking, a transferrable asset could be any of the following:
- Unencumbered funds (e.g. money in the bank that is immediately available to you)
- Properties with no liens against them and no partners (other than your common-law partner or spouse)
- Your vehicle, if wholly owned by you.
Transferrable assets are valuable because they are the only part of your net worth that you can transfer to Canada and invest in your business.
The minimum investment by job creator and the transferrable assets
When you apply for a job creator work permit (i.e. IMP C11), you need to show your transferrable assets are way more than your investment. Imagine you are investing $200,000, and your transferrable assets are only $210,000. Consequently, the officer might assume you are not capable of fulfilling your commitment. Unfortunately, this is a reasonable assumption as the officer considers issues such as the exchange rate and your other expenses, such as leasing an apartment or purchasing airplane tickets.
Therefore, make sure to commit to an investment that is way less than your transferrable assets. I prefer to see my client’s transferrable assets are at least 1.5 times their investment in the Canadian business. Nonetheless, I prefer a client who has liquid assets equivalent to or more than their investment. By liquid assets, I mean the assets that you can easily and quickly turn into cash.
Do you need to transfer the investment to Canada?
Of course, you do! However, you may not transfer all the money before receiving the work permit. Regardless, you need to show the officer that you have the intention and ability to invest. Consequently, I recommend transferring part of the funds upfront to a bank account that belongs to your Canadian business. False documentation or any attempt to deceive an immigration officer is against the law and has dire consequences. Read the following article for more information:
Conclusion
If you are applying for a work permit as a job creator, make sure to follow these rules:
- Consider a significant personal investment in the Canadian business.
- Your transferrable assets need to be way more than the investment you intend to make
- You have access to liquid assets that are preferably equal to or more than your investment.
- Transfer part or all the investment to Canada even before applying for the work permit
Of course, this is just one aspect of this work permit. I must also emphasize that this article is not a legal recommendation. It only reflects my personal experience with these types of applications. Consequently, make sure to consult with a Chartered Professional Accountant and a Corporation lawyer before making any decisions.
Let us help!
If you would like to apply for the IMP C11 work permit, submit the following form. However, you may alternatively book a consultation session with me or fill out our assessment form. If you are filling out the following form, make sure to be as thorough as possible.
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If you wish to visit or move to Canada, please fill out our free assessment form. We will review it for free, but we will contact you only if we find an opportunity for you. Alternatively, you may book a consultation session. Consultation sessions are not free, but you will receive formal advice from a licenced practitioner.
Al Parsai, MA, DTM, RCIC
Regulated Canadian Immigration Consultant
Ashton College Instructor – Immigration Consulting
Author – 88 Tips on Immigration to Canada
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