Ontario Entrepreneur Stream explained

If you have a business idea, or are in position to purchase an existing business in Ontario, then the Entrepreneur Stream of the Ontario Immigrant Nominee Program (OINP) could be the Canadian immigration option for you.

Under the OINP Entrepreneur Stream, the immigration authorities of Canada’s most populated province invite registered eligible candidates to apply for a temporary work permit, allowing them to establish the business in Ontario. If the terms of a Performance Agreement are met, successful applicants may then apply for provincial nomination, which is the next step on the way to becoming a permanent resident of Canada.

The OINP Entrepreneur Stream thus leads to permanent residence, but only after certain conditions are met. Moreover, eligible candidates must first be invited to apply before they may make an application. Invitations are issued on the basis of a unique points system.

Ontario Entrepreneur Stream eligibility criteria

Individuals wishing to apply to the OINP Entrepreneur Stream may do so alone, or with a business partner. In order to be eligible, candidates must meet the minimum requirements for all of the factors listed below. In cases where candidates intend to apply with a business partner, both persons must meet all the criteria for each factor.

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OINP Entrepreneur Stream Points System

Eligible candidates are assigned a score and ranked according a unique OINP Entrepreneur Stream points system. Up to 170 points are available, with the system divided into three broad categories: investment factors (up to 100 points), experience factors (up to 50 points), and human capital factors (up to 20 points).

If the applicant has a business partner, both persons must meet the appropriate criteria/thresholds outlined below.

Investment factors

Personal net worth includes all assets and those of the applicant’s spouse or common-law partner, if applicable, less any liabilities, including mortgages and personal debts.

The minimum investment amount must be derived from personal net worth.

Jobs created must be paid at the prevailing wage rate and must consist of a minimum of 1,560 hours of paid employment per year.

Only those individuals who plan on purchasing an existing business are obliged to make an exploratory visit to Ontario. However, points are available to all candidates for this factor.

The following key sectors have been defined as economic priorities for Ontario:

• Aerospace
• Automotive
• Financial services
• Food and Beverage Manufacturing
• Information & Communications
• Technology
• Life Sciences
• Mining
• Tourism Investment
• Water Technology

Census Metropolitan Area (CMA) and Census Agglomeration (CA) data is used to divide business locations into three broad categories based on population size.

Job creation in skilled areas is rewarded as follows.

Experience factors

If the candidate has both business ownership and senior management experience in 36 of the past 60 months, he or she must choose either the business owner or senior managerial experience.

Candidates with high growth business experience or export trade business experience may obtain points under the specific experience factor, if that experience was gained in the last 60 months.

• High Growth Business Experience: experience in a business that experienced at least 20 percent increase in revenue for two consecutive years.
• Export Trade Business Experience: experience in a business exporting at least 20 percent of total goods/services to a foreign market.

Human capital factors

Though level of education is not an eligibility factor to enter the pool of candidates, it is nonetheless rewarded under the points system.

Similarly, language ability is rewarded, even though it is not necessary to enter the pool.

Invitations to apply

Individuals wishing to apply to the OINP Entrepreneur Stream should note that:

• The stream operates on an Expression of Interest (EOI) / Invitation to Apply (ITA) model. Therefore, being eligible to apply does not guarantee that you may be invited to do so.
• Candidates who have submitted EOIs are ranked against one another.
• Only the highest-ranked candidates are issued an ITA, based on their score.
• If the candidate intends to apply with a business partner, the score is calculated using the lowest score of the two persons.
• Draws take place around once every four months.
• Candidates who are not invited within 12 months of submitting an EOI are removed from the pool. They may subsequently re-enter.
• Invited applicants (and business partner, if applicable) are required to attend a mandatory in-person interview at OINP offices to get a better understanding of the business plan and past experience.

Performance Agreement

Approved applicants (and business partner, if applicable) are required to sign a Performance Agreement, outlining the commitments required in order to be nominated for permanent resident status. The Performance Agreement must be unique to the application.

The Performance Agreement includes:

• A description of the business (including industry and its location);
• The investment amounts and timelines;
• The number and type of jobs to be created for Canadian citizens or permanent residents;
• Mandatory business milestones and achievements (depending on the specific business); and
• Timeframes for any commitments.

The required permanent full-time jobs created by the new business must be filled within 10 months of the applicant’s arrival in Canada and must remain filled for at least 10 months, up to the date that the Final Report is submitted.

Applicants who ultimately fail to satisfy the business commitments outlined in the Performance Agreement will not be eligible for nomination by Ontario, meaning that they will be unable to apply for permanent resident status.

Once the Performance Agreement has been have signed by the applicant(s), Ontario will issue a Letter of Confirmation so that Immigration, Refugees and Citizenship Canada (IRCC) can issue a temporary work permit. Applicants must arrive in Ontario with their valid temporary work permit issued by IRCC within one year of the date of the Letter of Confirmation.

After arrival in Ontario, applicants have up to 20 months to implement the business plan and meet all commitments made under the Performance Agreement. Then, a Final Report must be submitted to the OINP between 18 and 20 months after arrival in Ontario. The Final Report is meant to show that all Performance Agreement objectives have been satisfied.

Moving from temporary to permanent status

Once the Performance Agreement objectives have been met, applicants should be ready to apply for provincial nomination, and then permanent residence. In order to receive a nomination, individuals must:

• Be actively involved in the day-to-day management of the business;
• Physically reside in Ontario for 75 percent of the year (nine months out of the year) to support the business during the Performance Agreement period; and
• Demonstrate language ability of at least Canadian Language Benchmark (CLB) 5.

Once nominated, the federal government reviews admissibility requirements, including security and medical background checks.

Ineligible businesses

The OINP will not accept applications if the proposed business falls into one of the following categories.

Ineligible businesses in the GTA

• Existing franchises in Ontario (new foreign franchises expanding into Ontario are permitted)
• Gas Stations
• Tire Recycling
• Scrap Metal Recycling
• Pawnbrokers
• Bed and Breakfasts
• Holding Companies
• Laundromats
• Automated Car Wash Operations
• Payday loan and related businesses
• Businesses which have been previously owned/operated by current or former OINP business stream nominees.

Ineligible businesses outside the GTA

• Tire Recycling
• Scrap Metal Recycling
• Pawnbrokers
• Holding Companies
• Laundromats
• Automated Car Wash Operations
• Payday loan and related businesses
• Businesses which have been previously owned/operated by current or former OINP business stream nominees

Get help with your application

Do you need assistance in preparing an application for Canadian permanent residence? If so, view our Book an Immigration Consultant page to see Moving2Canada’s list of recommended, accredited representatives who can assist you in your goals.