ÿþ<html> <head> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 11 (filtered)"> <title>How to attract inward investor, high net worth individuals and the self-employed</title> <style> <!-- /* Font Definitions */ @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0cm; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman";} p {margin-right:0cm; margin-left:0cm; font-size:12.0pt; font-family:"Times New Roman";} @page Section1 {size:612.0pt 792.0pt; margin:72.0pt 90.0pt 72.0pt 90.0pt;} div.Section1 {page:Section1;} --> </style> </head> <body lang=EN-US> <div class=Section1> <p align=center style='text-align:center'><b><span style='font-family:Verdana'>How to attract inward investor, high net worth individuals and the self-employed</span></b></p> <p><i><span style='font-size:10.0pt;font-family:Arial'>Submitted by: Herbert Brownstein, Brownstein, Brownstein and Associates,October 2002, Durban, South Africa </span></i></p> <p><span style='font-size:10.0pt;font-family:Arial'> Introduction: The Province of Quebec has had a reputation of being the province in Canada, to most aggressively market it s business programs, particularly under the investor category. <br> <p> INVESTOR PROGRAM: Quebec s selection criteria under the investor category continues to be quite open. The criteria for eligibility include: <p>1. Three (3) years of management experience in a farming, commercial or industrial business that is profitable and legal. Management experience is defined as the actual assuming, on a full-time basis, of the responsibilities and duties related to the planing, management and control of material, financial and human resources, <p>2. Accumulation of a minimum personal net worth of CDN $800,000 from the investor s own economic endeavours (no gifts or inheritance), and <p>3. Investment and settlement in Quebec, </p> </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> ENTREPENEUR PROGRAM: Quebec defines it s entrepreneur program as follows: <p> 1. An individual who has management experience of at least three (3) years in a farming, commercial or industrial business that is profitable and legal. Management experience is defined as in the investor program. </p> <p> 2. The entrepreneur must create or purchase a business to operate and manage him/herself, in the farming, commercial or industrial sector, and must employ at least 3 Quebec residents in addition to him/herself or his accompanying family members, on a full time permanent basis, </p> </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> SELF EMPLOYED PROGRAM: A self-employed worker is an individual who comes to Quebec to create his/her own employment based on the exercise of one of the professions defined in the Classification of National occupations. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> I. Discussion of Possible Immigrant Profiles Although 10 points will be received by the 30 to 35 year old applicant and zero points for the 50 to 60 year old applicant, under the Quebec points selection criteria for the business programs the passing grade is low enough for individuals to pass who do not score any points for age or language skills. In terms of the liquidity of assets (2 million or 20 million as stated in the example profile), so long as the applicant can prove the assets are accumulated by his own economic endeavours, the liquidity at the time of interview is not crucial, although he must be able to show transferablility. He must be able to transfer the money to Quebec in order to receive his Certificate of Selection under the investor Category and utilize the necessary funds to open a business under the Entrepreneur category or self-employed category in order to have his condition of creating or purchasing a business removed. In order for the family to obtain their permanent resident status they must accompany the principle applicant to Canada. Under the investor program assets acquired through inheritance will not be considered. The investor must prove a minimum net worth of CDN $800,000 from his/her own economic endeavours. Entrepreneurs and Self-employed applicants can include inheritance money in their statement of assets. Should the applicant intend to travel extensively while holding permanent residence status in other jurisdictions, he will have a great difficulty in fulfilling the Canadian requirement of residency, in order to maintain his permanent resident status. Once the Canadian permanent resident obtains Canadian citizenship (after 36 months of physical presence in Canada and passing the proper test), the requirement of physical presence in Canada no longer exists. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> II. Country Profile: Quebec, Canada INVESTOR PROGRAM: Quebec s selection criteria under the investor category continues to be quite open. The criteria for eligibility include: MINIMUM NET WORTH: CDN $800,000 ACTIVE BUSINESS INVOLVEMENT AFTER IMMIGRATION: Not required. SOURCE OF FUNDS Accumulation of a minimum personal net worth of CDN $800,000 from the investor s own economic endeavours (no gifts or inheritance) EVIDENCE OF PRIOR BUSINESS MANAGEMENT Three (3) years of management experience in a farming, commercial or industrial business that is profitable and legal. Management experience is defined as the actual assuming, on a full-time basis, of the responsibilities and duties related to the planing, management and control of material, financial and human resources. MINIMUM INVESTMENT CDN $400,000. The investment is made through an Quebec Government approved broker with the approval and investment assistance of the Government of Quebec. The investment must be made prior to entry to Canada. Loan arrangements by the brokers are allowed. CONDITIONS: The immigrant must make the necessary investment as outlined above. The immigrant is not obliged to undertake any business activities after arrival, and may live in any city in the province of Quebec. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> ENTREPENEUR PROGRAM: Quebec defines it s entrepreneur program as follows: MINIMUM NET WORTH: CDN $200,000 ACTIVE BUSINESS INVOLVEMENT AFTER IMMIGRATION: The entrepreneur must create or purchase a business to operate and manage him/herself, in the farming, commercial or industrial sector, and must employ at least 3 Quebec residents in addition to him/herself or his accompanying family members, on a full time permanent basis, SOURCE OF FUNDS Accumulation of a minimum personal net worth of CDN $200,000. (Inheritance included) EVIDENCE OF PRIOR BUSINESS MANAGEMENT Three (3) years of management experience in a farming, commercial or industrial business that is profitable and legal. Management experience is defined as the actual assuming, on a full-time basis, of the responsibilities and duties related to the planing, management and control of material, financial and human resources. MINIMUM INVESTMENT CDN $100,000. The investment is made by opening or purchasing a business in Quebec, and includes capital outlays, rent, salaries, inventory etc... CONDITIONS: The immigrant must make the necessary investment as outlined above in order to open a business and have his condition removed from his visa.. The immigrant may live in any city in the province of Quebec. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> SELF EMPLOYED PROGRAM: MINIMUM NET WORTH: CDN $100,000 ACTIVE BUSINESS INVOLVEMENT AFTER IMMIGRATION: The self-employed must create or purchase a business relating to his profession as outlined in the Classification of National Professions, which he will operate and manage himself, on a full time permanent basis, SOURCE OF FUNDS Accumulation of a minimum personal net worth of CDN $100,000. (Inheritance included) EVIDENCE OF PRIOR BUSINESS MANAGEMENT Not required. MINIMUM INVESTMENT The amount is not fixed. The investment is made by opening or purchasing a business in Quebec, and includes capital outlays, rent, salaries, inventory etc... CONDITIONS: The immigrant must make the necessary investment as outlined above in order to open a business and have his condition removed from his visa. The immigrant may live in any city in the province of Quebec. A self-employed worker is an individual who comes to Quebec to create his/her own employment based on the exercise of one of the professions defined in the Classification of National occupations. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> II. Processing Information The following is a general description of the documentation required and processing stages in a Quebec Business application. The documentation is quite extensive and cannot be described in it s entirety within the limits of this paper. The applicant forms are very detailed and request support documents to prove the contents of the applicants Balance sheet of Assets and Liabilities. This includes, bank statements, property deeds, financial statements with owners equity outlined, and capital evaluation reports. In addition to the application form with support documentation, entrepreneurs must submit a detailed business plan as well as documents in support of their market investigatory visit to Quebec. This detailed business plan, must include all the elements to convince the officer that the applicant will succeed in their business project. During the visit to Quebec, the entrepreneur applicant, must visit banks, accountants, lawyers, potential suppliers, potential rental facilities, government associations and business associations and whatever other relevant resources as well as provide proof to the officer of said visits. In the initial application, the investor must prove the accumulation of all his/her money. This can be done by way of reference letters from early employment, income tax statements, financial statements showing annual profits, bank statements showing a history of deposits etc.... The self-employed applicant must submit much of the documentation listed above. This naturally, is in addition to, the normal documentation, such as photos, passports etc, required in any immigration application. The processing times are always changing depending on the volume of application, and the number of immigration officers sent to work a missions around the world and at the business head office in Montreal. However, one thing is certain. The processing times for Quebec are much faster than for applications through the Federal (Canadian System). At present processing times in these catagories depending on the Quebec Delegation range from three to nine months until interview. After the applicant receives Certificates of Selection for his family, the Federal Government must complete security and medical clearance which usually takes another 3 to 12 months. Children, 22 years and younger, if unmarried are included as dependents of the principle applicant. Dependent children 22 years of age or older may be included if they are full-time students and financially dependent up on their parents. Full-time students must prove that they are, and have been, studying in an accredited post-secondary educational institution without interruption since their 22nd birthday in a defined academic, professional or vocational program of study. Visas are valid for one year from the date of the passing of the medical evaluation. The visa must be activated by entering Canada before the expiry date as written thereon. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> III. Post Arrival Obligations Under the investor category there are little to no obligations after the $400,000 investment is made. After 5 years the investment is returned to the investor. He does not have to open up any other business or stay in any particular jurisdiction with Quebec. Under the Entrepreneur and Self-employed Categories the immigrant must open up a business within 2 years of arrival and prove this effort to the immigration authorities in order to have the condition on his visa removed. Naturally he must live in Quebec in order to manage the business himself. Historically, many Quebec Investors have left Quebec and settled in other provinces after arrival. Entrepreneurs and Self-employed cannot do this since they have to actively manage their business within Quebec in order to have the condition removed. </span></p> <p><span style='font-size:10.0pt;font-family:Arial'> IV. Analysis Individuals who are not within the preferred age group, do not speak English or French, but have sufficient assets accumulated legally by their own economic efforts, chose the Investor Visa, since they would not be eligible under any non-business visa, nor do they wish to actively operate a business in Canada. Many of these individuals wish to improve the family situation and hope that their children will receive the education and social democratic benefits of Canada. Individuals who do not have the necessary $800,000 Canadian accumulated as stated above, and are not within the preferred age group and may have poor language skills, chose one of the other business visas. These individuals have the necessary business experience to succeed under the entrepreneur or self-employed category, but do not meet the points for skilled workers or professionals. The benefits of applying for a business visa, primarily center around the fact that the applicant would not be able to obtain permanent residency to Canada under another program and has a strong desire to immigrate to one of the  best places in the world to live as stated by the United Nations on many occasions. The liability of any of these programs is the financial commitment the immigrant must make in choosing one of these categories. </span></p> RESPECTFULLY SUBMITTED BY HERBERT BROWNSTEIN, DURBAN INTERNATIONAL BAR ASSOCIATION CONFERENCE, OCTOBER 2002 <p class=MsoNormal>&nbsp;</p> </div> </body> </html>