Partial Ownership Stream Criteria
The Business Impact Category of the PEI PNP is looking for interested business persons who can demonstrate vision, leadership and determination to contribute to the Prince Edward Island economy. A healthy business environment and strong economy together with a diverse and skilled labour market makes Prince Edward Island an ideal location to invest in and operate a business. The Partial Ownership Stream of the PEI PNP considers applications from experienced business managers and entrepreneurs. The applicants must plan to become a partial owner of an existing and eligible Prince Edward Island business, through investing in that business and being involved in its day to day operations in Prince Edward Island. Furthermore, specific criteria must be satisfied to be nominated under the program.
Under the Partial Ownership Stream, the applicant must:
- Complete and submit all required Federal and Provincial PNP forms and supporting documentation.
- Possess a minimum verifiable personal net worth of $600,000 which has been accumulated through legal and legitimate sources in their own right.
- Possess a minimum education of high-school equivalent.
- Be within 21-59 years of age at the time of application.
- Have transferable management skills and past employment.
- Have scored a minimum band score of 4.0 on the IELTS within the last 2 years.
- Provide a detailed business plan for partial business ownership that falls within an eligible sector and meets all program criteria in place at the time of application.
- Provide active and on-going management of the business from within Prince Edward Island.
- Sign a escrow agreement containing stipulations on a deposit of $200,000 to be held by the Province until terms of the agreement have been met.
- Make a minimum of $150,000 investment into an existing Prince Edward Island owned and operated business for a partial ownership interest of a minimum of 33 1/3% of voting shares; or make a minimum $1 million investment. The transaction must be in compliance with the Immigration and Refugee Protection Act.
If an applicant meets all program criteria in place at application time and is approved, a nomination certificate will be issued.
The escrow agreement outlines the terms and conditions that must be met for the refund of the $200,000 CAD deposit. The terms and conditions are based on the applicant’s intentions as outlined in the business plan for the purchase of at least 33 1/3% of the equity of a business in Prince Edward Island.
The applicant must execute the escrow agreement based on the terms and conditions agreed upon between the applicant and the Office of Immigration. Along with this agreement, the applicant must also submit, to the Office of Immigration, the sum of $200,000 CAD, payable to IIDI, to be held in escrow. The $200,000 CAD will be returned without interest, as follow, $25,000 CAD will be refunded after 6 months of residency on Prince Edward Island another $25,000 CAD will be refunded after 1 year of residency on Prince Edward Island and the remaining $150,000 CAD will be released upon the applicant meeting the requirements outlined in the escrow agreement.
Should the applicant choose to purchase not less than 33 1/3% of the equity of an eligible Prince Edward Island business, the applicant is required to submit an investment agreement to the Office of Immigration. The investment agreement outlines the details of the proposed investment between the applicant and the Prince Edward Island business and must include as a minimum the following information:
- Confirmation that the Business is not operated primarily for the purpose of deriving investment income such as interest, dividends and/or capital gains;
- The proposed amount of the Investment in the Business;
- The number, class and conditions of the shares being purchased (if applicable);
- Confirmation that the investment does not include a redemption option;
- Confirmation that the Investment is not less than 33 1/3% of the equity in a Prince Edward Island business or make an equity investment in the business of at least $1,000,000;
- Confirmation that the Applicant provides or will provide active and ongoing management of the business from within Prince Edward Island; and
- Time frames for the Investment.
Prince Edward Island will be limiting its nominations to those applicants who are best suited to enhance the Prince Edward Island economy. Prince Edward Island’s economy relies heavily on its core industries to create economic value. Accordingly, Prince Edward Island will be giving priority to applications involving:
- The starting or expanding of an export-oriented business.
- Businesses that utilize primary sector resources from the following sectors (Agriculture, Fishery and Forestry).
- Businesses that help economically diversify rural communities in Prince Edward Island.
- Businesses that develop the province's emerging innovative sectors: bioscience, information technology, aerospace and renewable energy.
Preference will be given to applications that can demonstrate the ability to increase or maintain employment levels within the business.
For more information about Eligible Businesses, please visit our Business Criteria page.
Business Impact Category applicants and potential Prince Edward Island businesses are to obtain accounting/finance, risk assessment, tax, legal or other advice as may be required to exercise due diligence in selecting and investing.
It is important that applicants understand that:
- The Government of Prince Edward Island and IIDI do not assume any liability whatsoever for the oral or written misrepresentations made by the prospective business, or an agent/representative thereof, which may lead to an applicant subscribing for shares in a Prince Edward Island business;
- The Government of Prince Edward Island and IIDI do not guarantee, in any way, that the applicant will eventually recover his/her investment or earn dividends or any other return on their investment;
- The Government of Prince Edward Island and IIDI do not accept any liability whatsoever for the representations, actions, errors or omissions of businesses, agents, or others involved in investment promotion, investment match making, due diligence or other activity which may be associated with the applicant making an investment.