Saskatchewan | International Graduate Entrepreneur

Eligible and ineligible businesses

To be eligible to the SINP International Graduate Entrepreneur (IGE) stream, your proposed business must meet the following criteria:

• Businesses can be Sole Proprietorships, Partnerships, or Corporations but must meet the legal requirements of the community they operate in,
• The business must be a for-profit entity with the primary purpose of earning profits through the sale of goods and/or services, and
• The business must be considered a “permanent establishment” as defined under subsection 400(2) of the Canadian Income Tax Regulations, 1985.

Additional criteria apply if (i) starting a new business, or (ii) purchasing an existing business or business succession:

• (i) Starting a new business:
  • You can establish a new for-profit business in any industry or sector that satisfies the eligible business requirements and is not considered to be ineligible.
• (ii) Purchasing an existing business or business succession:
  • The Saskatchewan based business must have been in continuous operation and owned by the same owner for the previous three years,
  • You must visit the community to see the business and/or meet the previous owners,
  • You must provide evidence that reasonable efforts were taken to establish a fair market value for the business, and
  • You must commit to maintaining employment for existing Canadian citizens or permanent residents, as well as maintaining existing wages and employment terms.

Some types of businesses are not eligible for the SINP IGE stream:

• Wholesale trading businesses, where goods or merchandise are purchased in Canada or internationally, and resold without transformation, either in Canada or internationally,
• Businesses located in a multi-business retail condo/location/project or business incubator that is not completed/operational, and/or is targeted or dependent on investment or business operations from SINP entrepreneurs for the development, completion or ongoing operation of the project,
• Any business where the investment or purchase of the business is the result of a “Non-Arm’s Length” transaction, such as the purchase of an existing business from a family member or transactions between related stakeholders such as partnerships or corporations,
• Any business previously owned by a SINP Entrepreneur or Immigrant Graduate Entrepreneur applicant,
• Any business venture or partnership with an SINP Entrepreneur category applicant (only partnerships with new International Graduate Entrepreneur applicants are eligible),
• Primary agriculture/farming operations,
• Property rental, investment, and leasing activities,
• Coin operated businesses of any kind,
• Consultancy or any business that offers professional advice,
• Resale of goods and/or services,
• Online/e-commerce businesses (unless the service/product is new to the Canadian marketplace and products are warehoused by the applicant in Saskatchewan),
• Real estate construction/brokerage/renovation/property development, insurance brokerage or business brokerage where you receive a commission or do not take physical possession of the product,
• Professional services or self-employed business operators requiring licensing or accreditation, unless the license or accreditation was obtained as a result of your academic studies,
• Long distance freight trucking,
• Pay day loan, cheque cashing, money changing and cash machines,
• Credit unions,
• Home-based businesses, including bed-and-breakfasts and lodging houses,
• Co-operatives,
• Investments into a business operated primarily for the purposes of deriving passive investment income, or
• A business that by association could bring the SINP into disrepute.

Eligible sources of investment/revenue

Eligible Investments
You must demonstrate that any initial investment into the establishment or purchase of a business is financed directly from your own equity and/or from a recognized Canadian financial institution, Venture Capital, or Angel Investment firm. If you are unable to satisfy the SINP during application assessment that the source of your immediate investment meets program criteria and is from a lawful source, you will be refused approval and/or nomination.
Other sources of investment that are not eligible to be claimed as your contribution to meeting minimum ownership requirements include, but are not limited to, gifts or “in-kind” contributions from partners or third parties, donations, or loans or grants from ineligible financial institutions.

Revenue to Meet LICO Requirement
In order for be eligible for nomination (after signing the Business Performance Agreement, see below for more details), the business must generate enough revenue in one year of operation (i) to cover the costs of paying employees prevailing wages (if any employees), and (ii) to cover your salary or dividend (at minimum, must be above Saskatchewan’s low income cut-off (LICO) threshold).
The eligibility of a source of revenue is assessed based on whether or not the revenue is the direct result of ongoing business activities. Not all revenue sources will be eligible, while others will be eligible within limitations.

• Transaction-based revenue: proceeds of sales of goods and/or services that are usually one-time customer payments such as the sale of retail items or the purchase of one-time services.
• Recurring revenue: earning from ongoing payments for continuing services or after-sale services to customers, such as subscriptions, licencing, or fees.
• Venture Capital/Angel Investment: may be considered eligible forms of revenue if obtained by a member of the National Community for Angels, Incubators, and Accelerators, or the Canadian Venture Capital Private Equity Association. Only investment revenue directly associated with the operation of the business may be considered eligible. The SINP reserves the right to review investment contracts/agreements to determine the eligibility of investment revenue.

Ineligible sources of revenue include, but are not limited to, any source of passive income not the direct result of ongoing business operations, such as arbitrage, online reselling, online marketplace commissions, rental/leasing income, interest, dividends, gifts or donations. 

Partnerships/Joint Ventures

In addition to the requirements above, if you are proposing a joint venture with another IGE applicant in the operation of a new business, the purchase of an existing business, or a partnership with a Permanent Resident or Canadian Citizen, below are additional guidelines and requirements:

• The existing Saskatchewan based business must have been in continuous operation by the same owner for the previous three years,
• You must meet the previous owners or business partners,
• You must provide evidence that reasonable efforts were taken to establish a fair market value for the business or investment amount,
• When committing to maintain employment for existing Canadian citizens or permanent residents, you are required to show that employees are paid prevailing wages (as posted on the National Job Bank),
• When applying, you must clearly indicate in your application form that you are proposing a joint venture with a IGE program applicant or a permanent resident or Canadian citizen, and identify your proposed business partners,
• You must submit your individual Expression of Interest (EOI) simultaneously with the proposed IGE partner:
  • Each prospective applicant will be evaluated individually, with their selection from the EOI pool dependent on their ability to meet eligibility criteria and earn points as an individual, not part of a group or partnership,
  • If any partner is not selected from the EOI pool for processing, all remaining partners will need to update their business proposal if any changes are required to be eligible for the EOI points previously earned,
  • If all partners are selected from the EOI pool and approved, each partner will be required to sign a separate Business Performance Agreement, and each partner must meet the agreement terms in order to be approved for nomination,
  • In the event that the SINP determines that one or more partners failed to meet the terms of their individual Business Performance Agreement for reasons beyond humanitarian and compassionate circumstances, all remaining partners will be required to update their performance agreement to ensure they continue to meet program criteria. 

Minimum criteria and IGE Points Grid

In order to meet the minimum criteria you must:

• Be at least 21 years old,
• Have completed a full-time Saskatchewan post-secondary degree or diploma of at least two years in length from a recognized and eligible Saskatchewan institution,
• Have a valid Post-Graduation Work Permit with no less than 24 months of eligibility remaining,
• Have resided in Saskatchewan during your academic program (no distance-learning programs or accelerated academic program are eligible), and
• Have a minimum Canadian Language Benchmark (CLB) level of 7.

As said earlier, meeting minimum eligibility requirements does not necessarily mean that you will receive an Invitation to Submit an Application from the SINP. 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 5 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.