Net Worth Requirements Self-employed Immigration Canada
Ahnaf is a thriving cricket athlete from Bangladesh. However, he prefers to move to Canada for a better lifestyle. Although Ahnaf has been very successful over the years, he wonders if he has enough funds for immigration. Consequently, he looks at the net worth requirements to immigrate as a self-employed person to Canada.
Canada offers a unique immigration option for self-employed artists and athletes. However, since these are business immigration options to Canada, you need to meet specific criteria. Is net worth one of them?
Definition of net worth for self-employed immigration
Generally speaking, net worth means the monetary value of all your assets minus all your debts. However, I have another article that explains the net worth in detail. If you are not familiar with the concept, read that article first.
Is there a net worth requirement for self-employed immigration?
The simple answer to this question is “no.” However, this is merely a simplified answer on the IRCC website. In reality, when you apply for immigration under this program, you need to verify the following:
- You have the intent and ability to be self-employed in Canada.
- You will significantly contribute to the Canadian economy.
As you can imagine, both of these activities require investment. Of course, to invest, you need a considerable net worth.
How much do I need to invest in Canada as a self-employed person?
The amount of investment depends on the nature of your job. Here are some examples:
- An athlete who intends to run an academy in Canada: You probably need to invest $100,000 or more. Such activities require significant investment in marketing, inventory and equipment.
- A painting artist who wants to establish a gallery: Similarly, your investment needs to be significant. You need to either pay a hefty monthly rent or purchase a gallery. Of course, you also need to pay for advertisement, inventory and hiring helpers.
- A hockey coach who seeks to teach at local clubs: If you intend to sign agreements with local clubs, then your investment will probably be minimal. However, you still need some money to advertise and other marketing activities.
- An author and editor who intends to continue the same route in Canada: As an author, you probably need a laptop and a business card. Therefore, the amount that you need to invest is not much.
Of course, these are just some examples. Consequently, you need a comprehensive settlement and business plan to realize the necessary investment. Regardless, don’t forget that your investment needs to assist in meeting the tests of significant contribution and the intent and ability for being self-employed in Canada.
Net worth and investment as a self-employed person
If you look at your net worth, you will realize that only part of it is transferrable to Canada. Consequently, your investment will be less than the transferrable portion of your net worth. Here is an example:
- Net worth: $233,000
- The transferrable portion of the net worth: $175,000
- Maximum investment: $175,000
I recommend considering only 50% to 70% of the transferrable net worth for the investment. Of course, I have come to this conclusion for the following reasons:
- Officers may disagree with you about the transferrable portion of your net worth. So it is wise to leave some cushion proactively.
- The fluctuations in exchange rates could reduce the valuation of your assets.
Settlement funds for self-employed applicants
When you immigrate to Canada, you need to show you can take care of yourself and your family members in the first few months without working. Of course, family members refer to your spouse or common-law partner and dependent children. Therefore, consider a 6-month LICO based on the number of people in your household. If you are familiar with the concept of LICO table, visit the following page:
Remember that settlement funds are part of your net worth. Consequently, if you intend to invest $120,000 and need $20,000 for settlement, then your transferrable portion of net worth must be more than $140,000. Also, the funds for settlement must be unencumbered.
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Al Parsai, MA, DTM, RCIC
Regulated Canadian Immigration Consultant
Ashton College Instructor – Immigration Consulting
Author – 88 Tips on Immigration to Canada
Disclaimer:
This article provides information of a general nature only. Considering the fluid nature of the immigration world, it may no longer be current. Of course, the item does not give legal advice. Therefore, do not rely on it as legal advice or immigration advice. Consequently, no one could hold us accountable for the content of these articles. Of course, if you have specific legal questions, you must consult a lawyer. Alternatively, if you are looking for immigration advice, book an appointment.
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