The guide below takes a deep look into one of the streams of Nova Scotia’s Provincial Nominee Program (NSNP), the Entrepreneur stream. The guide will go through an overview of the stream, its eligibility requirements, how it works, the documentation needed, its cost and processing times.
NS Entrepreneur – Overview
The Entrepreneur stream is one of the Nova Scotia PNP streams that is dedicated to international entrepreneurs who wish to invest their money in the province.
When receiving a nomination under the Entrepreneur stream, candidates can then apply for Permanent Residence to the federal government of Canada.
This stream is not aligned with Express Entry, which means that candidates cannot take advantage of the 6-month average processing times of Express Entry. Processing times of Provincial Nominee Programs (not aligned with Express Entry) are usually longer and take at least 1 year.
The Entrepreneur stream has minimum eligibility requirements, however, the NSNP does not send Invitations to Apply to every candidate that meets these minimum criteria. Each candidate, when entering the system, has a score (up to 150 points) that depends on multiple factors (explained in detail in the Eligibility Requirements section). In fact, the NSNP conducts periodic Entrepreneur draws, and each draw has its minimum threshold score, and all candidates with scores above or equal to that draw’s threshold are invited to apply. More information is available in the Draw History section of this guide.
NS Entrepreneur – Eligibility
Eligible and ineligible businesses
To be eligible to the Entrepreneur stream, your proposed business must meet the following criteria:
- You must own at least one third (33.33%) of the equity of the business.
- You must provide active and on-going participation in the day-to-day management and direction of the business.
- Businesses must meet the legal requirements of the community in which they operate.
- The business must be a for-profit entity with the primary purpose of earning profits through the sale of goods and/or services.
- The business must be considered a “permanent establishment” as defined under subsection 400(2) of the Canadian Income Tax Regulations, 1985.
- The business is liable to pay income tax on taxable income earned as a result of a “permanent establishment” in Nova Scotia, irrespective of income or other taxes which may also be payable in other jurisdictions as a result of income earned or other business activity.
- The business must be actively managed by you from the place of business in Nova Scotia. The business must not be managed from another location in Nova Scotia or from another Canadian province or territory or other country.
- The business must have the potential to create significant economic benefit to Nova Scotia. For example:
- Increasing value added manufacturing or processing, exports, destination tourism, research and development, and technology commercialization,
- Developing innovative approaches to traditional businesses,
- Transferring technology and specialized knowledge to Nova Scotia, or
- Providing products or services to an under-served local or regional market.
Additional criteria apply if (i) starting a new business or (ii) when purchasing an existing business:
- (i) Starting a new business: you must create a minimum of one full-time or equivalent part-time employment opportunity for a Canadian citizen or Permanent Resident in Nova Scotia (non-relative worker).
- (ii) Purchasing an existing business:
- The Nova Scotia based business must have been in continuous operation by the same owner in Nova Scotia for the previous 5 years,
- You must complete an exploratory visit to meet the current owner(s),
- You must provide evidence that reasonable efforts were taken to establish a fair market value for the business,
- The business must be actively in operation and not in receivership, and
- You must offer employment on similar terms and conditions to existing staff, including maintaining existing wages and employment terms.
Some types of businesses are not eligible for the Entrepreneur stream:
- Businesses that are conducted remotely (from another Canadian jurisdiction or from another country).
- Property rental, investment, and leasing activities.
- Real estate construction/development/brokerage, insurance brokerage or business brokerage; unless you can prove your project in this area will have a compelling benefit to the Province of Nova Scotia.
- Any professional services or self-employed business operators requiring licensing or accreditation.
- Pay day loan, cheque cashing, money changing and cash machines.
- Pawnbrokers.
- Credit unions.
- Home-based businesses; unless you can prove your business will have a compelling benefit to the Province of Nova Scotia.
- Co-operatives.
- Investments into a business operated primarily for the purposes of deriving passive investment income.
- Businesses involved in the production, distribution or sale of pornographic or sexually explicit products or services.
- Joint ventures between NSNP program candidates.
- Any other type of business that by association would tend to bring the NSNP or the Government of Nova Scotia into disrepute.
Minimum criteria and Entrepreneur 150 Points Grid
As said earlier, meeting minimum eligibility requirements does not necessarily mean that you will receive an invitation to apply from the NSNP. Each draw has a minimum threshold score, and you need to have a score above or equal to the threshold to receive an invitation to apply.
There are 8 factors under which you can score points that are explained in detail below. Remember that for each factor you will be claiming points for, you will have to provide supporting documents to prove you satisfy to the criteria of the factor.
You must demonstrate you have a minimum Canadian Language Benchmark (CLB) test score of 5 for each language skill, either in French or in English (which will get you 20 points). You can score more points if your CLB score is above 5, up to a maximum of 7 points per language skill, for a total of 28 points.
If you have test results for a second official language, you can get 7 additional points if you have a score of at least CLB5 in each of the four language skills.
You must submit a completed Canadian secondary or post-secondary educational credential, or if the educational credential is from a foreign (non-Canadian) institution or authority, you must also submit an Educational Credential Assessment (ECA) issued by an approved provider.
You are considered ineligible to the stream if you don’t have a secondary (high school) diploma.
The number of points is based either on your (i) Business Ownership Experience OR (ii) Senior Management Experience in the last 10 years. There is a minimum 3-year business ownership experience OR 5-year senior management experience requirement to be eligible for the Entrepreneur Stream.
(i) Business Ownership Experience: You must have owned at least 1/3 of the business. You must demonstrate that your role was an active role, meaning that you were personally involved in the day-to-day operations of the business and had direct involvement in decision-making.
(ii) Senior Management Experience: Your role must be in an NOC TEER Category 0, 1, 2 or 3 occupations, and generally entails:
- Manage the organization, a department, subdivision, or component of the organization; or an essential function within the organization.
- Supervise and control the work of other managers or supervisors or professional employees.
- Have the authority to hire and fire, or recommend these and other personnel actions, such as promotion and leave authorization.
- Exercise discretion over the day-to-day operations of the activity or function for which the employee has the authority
Designated Net Worth Verifiers
Grant Thornton LLP
Nova Centre, North Tower Suite 1000
1675 Grafton Street
Halifax NS B3J 0E9
(902) 566-6324
NSPNPGrantThornton@ca.gt.com
KPMG-Toronto
4600 – 333 Bay St
Bay Adelaide Centre
Toronto ON M5H 2S5
(416) 777-3887
nsnpverification@kpmg.ca
MNP
200 – 100 Venture Run
Dartmouth NS B3B 0H9
(902) 493-5452
NSNP-MNP@mnp.ca
You must must be at least 21 years old to be eligible to the stream.
You can only earn a maximum of 10 points in this factor, even if you can score more than 10 points.
You may claim additional points based on three of Nova Scotia’s economic priorities:
- Export-oriented business: You must have noted an export oriented business within your business establishment plan.
- Proposed business located outside of Halifax County: Your business establishment plan specifically states that you will run your business in a county other than Halifax.
- Business Succession: The Nova Scotia based business must have been in continuous operation by the same owner for the previous 5 years. You must also complete an exploratory visit to meet current business owners and provide evidence to support this meeting in your Business Establishment Plan. You are encouraged to provide preliminary business purchase price and evaluation in order to prove your intent to purchase an existing Nova Scotia business.
You may claim points based on the total personal investment amount that will be made into your proposed business. The minimum investment of 150,000 CAD if your business is inside the Halifax Regional Municipality (HRM) or $100,000 CAD if outside the HRM. The funds must be derived from your personal net worth. The maximum number of points for this factor is 15 points.
The following list of equity expenditures may be included as business investments: land, buildings, equipment, software, licenses, franchise fees, leasehold improvements, professional fees associated with the establishment of business, one vehicle, and furniture and fixtures.
The NSNP may consider eligible operating expenses (recurring monthly expenses which includes rent, wages and salaries, utilities, advertising, accounting, and insurance) in the following circumstances:
- For the establishment of a new business: A maximum of six months of operating expenses.
- For the purchase of an existing business: A maximum of three months of operating expenses.
The following are considered ineligible Investments: Cash, any expenses incurred prior to the mutual signing of the Business Performance Agreement, operating expenses for a franchise purchase/start up.
To be considered eligible, investments must be relevant and directly related to the candidate’s Business Establishment Plan, with evidence to demonstrate that the investment has been made within the first two 2 years of business operation after receiving approval from the NSNP.
NS Entrepreneur – Application Process
For a better understanding of the process, below is a list of the steps involved in obtaining Permanent Residence through the Entrepreneur stream. Obtaining the provincial nomination is a two-step process:
Step 1:
- A candidate must register an Expression of Interest (EOI). This allows them to be included in the pool of candidates and be assigned a score out of 150 points based on their specific factors.
- If selected by the NSNP (see Draw History section for more information), the candidate must apply to the NSNP, meaning filling in forms, and uploading supporting documentation, which includes your Business Establishment Plan. You will have :
- 20 calendar days to select one of the Designated Net Worth Verifier, and notify the NSNP of your decision,
- 60 calendar days to submit a full application to the NSNP, including all supporting documentation, and
- 180 calendar days to submit your Net Worth Verification Report and a preliminary purchase price and evaluation if buying an existing Nova Scotia business.
- During the processing of the application, the candidate will need to attend an in-person interview in NSNP’s offices in Nova Scotia. The costs related to this interview are not paid by the NSNP, but by the candidate.
- If the interview of the candidate is successful, they must sign a Business Performance Agreement whereby they commit to achieving their intended investment. The agreement usually contains (but is not limited to) (i) investment amounts and timelines for commitments, (ii) number and types of jobs to be created for Canadian citizens or permanent residents, (iii) mandatory business milestones and achievements, etc.
Step 2:
- When the NSNP receives the candidate’s signed Business Performance Agreement, they will be issued an Approval Letter to apply within 2 months for a Temporary Work Permit to the federal government (IRCC).
- The candidate will have 12 months to from the date of receipt of the Approval Letter to arrive in Nova Scotia. Upon arrival, they need to meet with the NSNP staff within 60 calendar days.
- If the candidate satisfies to all the requirements, they will be issued a provincial nomination. The following are the main requirements:
- Operate the business for at least 1 year,
- Maintain legal status in Canada, and
- Submit an Audit Opinion and a Special Purpose Report by a designated Audit Services Verifier (see list below).
- The candidate must finally apply for permanent residence to IRCC within 6 months of receiving the nomination. The candidate needs to apply on paper to IRCC, and include documents received by the NSNP.
Designated Audit Services Verifiers
N.B. : An Audit Service verifier who assists an applicant with preparing a Business Establishment Plan cannot also prepare audit services.
Grant Thornton LLP
Nova Centre, North Tower Suite 1000
1675 Grafton Street
Halifax NS B3J 0E9
(902) 566-6324
NSPNPGrantThornton@ca.gt.com
MNP
200 – 100 Venture Run
Dartmouth NS B3B 0H9
(902) 493-5452
NSNP-MNP@mnp.ca
White Perkins
230 Main Street
Yarmouth, NS B5A 1C9
(902) 742-2333
info@wpacpa.ca
