Canada

Prince Edward Island Program (PEI)

The Prince Edward Island Provincial Nominee Program, Business Impact Category, is a permanent residence permit granted to entrepreneurs, together with their dependents, who start or purchase a business in the state of Prince Edward Island, Canada.

There are three pathways to permanent residency through the Business Impact Category of the Prince Edward Island Provincial Nominee Program: the 100% Ownership Stream; the Partial Ownership Stream; and the Work Permit Stream.

You must obtain at least 50 points on a Business impact assessment to be nominated to qualify for any of these programs.
For the 100% Ownership and Partially Ownership streams, you may start a business venture in PEI or purchase an existing qualified business.

You will be required to have an interview with the Office Immigration. If you pass the interview, you must submit your business plan and get it approved. You must demonstrate your intention to live and work in PEI, and provide day-to-day active and ongoing management of your company from PEI.
It is required to sign an escrow agreement with the Province and submit a CAD 200,000 deposit.

CAD 50,000 corresponds to a residency portion, which will be refunded in two parts at two different times. CAD 25,000 after you reside in PEI for six months, and CAD 25,000 after you reside in PEI for one year.

The other CAD 150,000 corresponds to the business portion, and will be refunded after you meet the terms and conditions of your escrow agreement, including operating your business for a minimum of 12 consecutive months.

For the work stream, you must be already living and working in PEI, and provide day-to-day active and ongoing management of the PEI-based company. You will be required to attend to an interview and if successfully passed, submit a business plan. You will sign a performance agreement.

You will be requested to submit a letter written by a legal opinion written by a Canadian lawyer stating that your application meets the IRCC Regulations and IRPA 87. After this is received by our office, you will be issued a letter of support for a work permit. Once the terms of your performance agreement are met you will be eligible to get your permanent residency permit.

To keep your permanent residency status, you must physically be in Canada at least 730 days (2 years) in a five-year period. Failure of your business will not affect your permanent resident status.

After 5 years holding the permanent residency status, you will be eligible to apply for citizenship, provided that you have lived 1,095 days in Canada within the five years, and 183 days during each of three calendar years that are fully or partially within the six years right before the date you apply.

To apply for citizenship, you must also have met your personal income tax filing obligations in four three years that are fully or partially within the five years right before the date you apply. And take a language (French or English) test and pass an exam regarding Canadian values, history, symbols, institutions, rights, responsibilities and privileges of citizenship.

Requirements


- Score a minimum of 50 points on the Business Impact Self Assessment.
- Have a minimum verifiable personal net worth of CAD 600,000 which has been accumulated through legal and legitimate sources in your own right.
- Have 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 or business ownership experience.
- Meet minimum language requirements equivalent to a band score of 4.0 on an IELTS test.
- Business Plan including company overview, products/services, industry analysis and competitive landscape, marketing plan, management team and staffing, applicant’s role in the business, historical financial statements (if purchase business) and financial projections prepared by a qualified accountant (if start business).

Restricted Nationalities


No nationality is officially restricted

dual citizenship


Dual citizenship is recognized in Canada. You are not required to renounce your previous nationality to become a citizen of Canada.


Documents Required


  • Certified copy of passport
  • Evidence of language skills
  • Letter of support of designated entity
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Certified copy of ID Card
  • Evidence of Residential Address
  • Affidavit of support for Dependents
  • Original Police Clearance Certificate
  • Two passport-size photos
  • Bank Statement
  • Original Bank Reference Letter (Not older than 6 month)
  • Proof of net wealth
  • Statement of Source of Funds
  • Evidence of Business Background
  • Curriculum Vitae
  • Professional and academic certificates
  • Medical Certificate
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required Yes
  • Personal visit required Yes
  • Language skills required Yes
  • Interview required Yes
  • Investment Single C$200,000
  • Investment Family 4 C$200,000
  • Minimum annual income -
  • Time to citizenship 60
  • Time to permanent residency
  • Visa-free countries 171
  • Financing available No

Fees

government fees main applicant CAD 10,000 (7,500 refundable if not approved)
processing fees main applicant C$1,050
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees main applicant C$11,590
processing fees spouse C$550
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees spouse C$1,090
processing fees dependents -18 $150
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent -18 C$200
processing fees dependents 18-25 -
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent 18-25 -
due diligence fees dependents +65 -
processing fees dependents +65 -
certificate issuance fee C$490 (PR Fee) C$50 (PR Card)
total fees dependent +65 -

Country details

Canada
CAD
1
Ottawa
North America
English French
33679000
Canada is a sovereign country of North America, whose form of government is the federal parliamentary monarchy. Its territory is organized in ten provinces and three territories. It shares borders with the United States to the south, and to the northwest with its federal state Alaska. It is the second largest country in the world after Russia. About 36 million people live in Canada. English and French are its official languages. Its capital is Ottawa, but its most populated cities are Toronto and Montreal, with 2 and a half and 1 and a half million, respectively. Its official currency is the Canadian Dollar (CAD).

Visa Free Travel

With your new passport from Canada you'll be able to access 171 countries visa free
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Taxes

There are several facts that determine an individual’s tax residency in Canada such as having a permanent domicile in the country or having business or social ties to the country. In any case, an individual who spends 183 days or more per year in the country may be considered a tax resident.

Tax residents are subject to federal income tax and provincial/territorial income taxes on their worldwide income. Non-residents are taxed on their income and capital gains derived from Canada.

Federal Income tax is progressive ranging from 15% to 33%.

Each territory or province levies its own income tax. PEI, top marginal tax rate is applied to income over CAD 63,969 and is taxed at 16.7%. There is also a surtax of 10%.

Fifty per cent of capital gains are included in taxable income and taxed at applicable tax rates. Non-eligible and eligible dividends from Canadian corporations are grossed up by 17% and 38%, respectively. Eligible dividends are those from Canadian public corporations or those from entities which are not controlled private corporations. Interest and rental income are treated as ordinary income.

Municipalities levy property taxes and land transfer taxes. There is no inheritance tax, however, an individual who dies is deemed to have disposed of any capital property immediately before death. This can result in any accrued capital gains being subject to income tax, and all provinces and territories impose probate fees or administrative charges for probating a will. There is no tax on net wealth in Canada.

The federal goods and services tax (GST) applies on most goods and services and is levied at a rate of 5%.

British Columbia, Manitoba, and Saskatchewan each levy retail sales tax at 7%, 8%, and 5%, respectively.

New Brunswick, Newfoundland and Labrador, Nova Scotia , Ontario, Prince Edward Island have a fully harmonized sales tax that include the GST. The tax rate is 15%, except in Ontario that is 13%.

Quebec’ sales tax is 9.975%, resulting in an effective tax rate of 14.975%.

Neither Alberta, Northwest Territories, Nunavut and Yukon levy a retail sales tax. However, the GST is applicable in those jurisdictions.

Regarding corporate taxation, resident entities are subject to federal and provincial taxes on their worldwide income. Federal tax standard rate is 15%, whereas provincial tax rates range from 11% to 15%. To know more about Canadian corporate taxation, legal framework and tax treaties visit incorporations.io/canada.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax Yes
  • Inheritance tax Yes
  • Net worth tax No
  • CFC law Yes
  • Tax residency days 183
  • Personal income tax rate 51.4%
  • Capital Gains tax rate 25.7%
  • Investment income tax rate 51.4%
  • Territorial taxation No

Procedures

Flag Theory | Passports.IO and our qualified attorney in Prince Edward Island, Canada, will handle all paperwork, and guide you through each step of the process to ensure that it is as fast, efficient and pain free as possible.


First, our lawyers will conduct a due diligence check on you to ensure that you are eligible and meet the criteria to apply for the program and your application will be approved.
You will have to do the Business Impact Self Assessment test scoring a minimum of 50 points. After that will send you the initial application forms and provide assistance to complete the questionnaires, translate and authenticate documents. Initial application will be send to the Office of Immigration in Charlottetown.

Once your initial application is accepted, you will have to attend to an interview with the Immigration Office Staff. There you will discuss your proposed business idea and you will sign the agreement (escrow or performance agreement, depending on the stream). We will support you on its preparation for you successfully pass it. After that you will be required to submit your business plan.

If your initial application together with your business plan is approved, we will submit the permanent residency application to the Canadian Federal Government, which will finally approve the application.

After approval you must visit PEI and report to the Immigration Office.

If required, we will incorporate your PEI company and open a bank account. We work primarily with banks that allow for remotely opened accounts to ensure that you are ready to do business as soon as possible.

For further information on the PEI Business impact visa and detailed procedures, contact us for a free private consultation.

Any time there is a change or new citizenship or residency by investment program, we'll send you an update via email. Your email will not be shared.