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The British Columbia Provincial Nominee Program (BC PNP) offers two distinct business streams: the Regional Business Stream and the Base Business Stream. Both streams have specific guidelines for eligible personal investments and acceptable types of businesses.
The BC PNP determines the eligibility of a proposed investment by assessing whether the expenditure is crucial for establishing and running a new business or for purchasing, enhancing, and operating an existing business. The eligible investment amounts and requirements are based on the profile you submit, the points you receive, and the province’s approval. This investment is formalized in a performance agreement that you will sign with the province.
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Minimum Eligible Investment:
For the Regional Business Stream, you are required to make a minimum eligible personal investment of $100,000 within 610 days (about 20 months) of arriving in British Columbia on a BC PNP-supported work permit. The amount you invest must come from your personal net worth and should be aligned with the investment outlined in your performance agreement.
Let's now discuss the eligible and ineligible investments under the Regional Business Stream.Top of FormBottom of Form
Eligible Investments:
The eligible personal investment for this stream includes:
* New Equipment Purchases: Investments in machinery or technology essential for business operations. This includes investments in machinery, technology, and other essential tools required for the business to operate efficiently. Such equipment is crucial for production, service delivery, or other core business activities, and its acquisition is necessary to ensure smooth and effective business operations.
* Improvements to Leased Property: This refers to the costs associated with modifying or upgrading premises that the business is leasing. This can include renovations, installations, or enhancements to make the space suitable for the business's needs, improving its functionality, safety, or aesthetic appeal.
* Marketing Costs: This includes expenses related to promoting and advertising the new business. Investments in marketing can encompass various activities such as creating and distributing promotional materials, digital advertising campaigns, public relations efforts, and other strategies to attract and engage customers.
* Regular Operating Expenses: These are the recurring costs required to keep the business running on a day-to-day basis. They include rent for the business premises, wages and salaries for employees, utility bills (such as electricity, water, and gas), and other regular expenses necessary for maintaining business operations.
* Start-Up Inventory: The initial stock of goods or materials necessary to commence business operations. This includes the purchase of raw materials, finished products, or other inventory items needed to provide services or sell products to customers right from the start.
Specific Limitations:
* Purchase of Business Vehicle: Only up to $15,000 of the vehicle’s purchase price is eligible if the vehicle is deemed essential for the business.
* Operating Expenses: A maximum of six months of operating expenses is eligible for new businesses. For new franchise locations, the limit is three months.
* Inventory: Up to three months’ worth of start-up inventory is considered eligible.
Ineligible Investments:
Certain expenses are excluded from the eligible investment calculation:
* Cash and working capital reserves.
* Wage payments to yourself, family members, or co-owners.
* Refundable deposits and real estate-related costs.
* Immigration-related fees, including representative fees and application fees.
Timing of Investment:
The BC PNP will only consider investments made after you are invited to apply. Investments made before this point are not eligible. It is advised to wait until you have signed the performance agreement and received a valid work permit before making any financial commitments.
Eligible Businesses under the Regional stream
To qualify for the EI – Regional stream, you must propose to start a new business in a participating community in British Columbia that aligns with the community’s identified economic development priorities. The BC PNP will only consider registrations for establishing a new business in a participating community if it aligns with the economic development priorities set by that community.
Each community has specified the types of businesses it seeks to attract, defined by North American Industry Classification System (NAICS) codes. Only registrations that match these codes will be considered eligible. For example, Campbell River on Vancouver Island has identified the following priority business sectors:
3119 - Other food manufacturing
3212 - Veneer, plywood and engineered wood product manufacturing
5417 - Scientific research and development services
7225 - Full-service restaurants and limited-service eating places
The proposed business must be identified by a full six-digit NAICS code and should operate primarily to generate profits through the provision of products and/or services. Additionally, your experience must align with the proposal, and the business should demonstrate strong potential for long-term commercial success.
You need to know that the BC PNP does not pre-approve or endorse business proposals. The information in this guide is current as of May 27, 2024. For the most up-to-date version, please check our website.
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Minimum Eligible Investment:
The Base Business Stream requires a minimum eligible personal investment of $200,000 within the same 610-day period. As with the Regional Stream, this investment must be derived from your personal net worth and should correspond to the investment details and points received in your profile.
Eligible Investments:
In addition to the expenditures covered under the Regional Stream, the Base Business Stream includes:
* Purchase of Existing Business: Investment in the purchase price of an existing business up to $150,000, excluding professional fees. Additionally, you must invest at least $50,000 in improving, upgrading, or expanding the business.
* Improvement/Expansion: Investments for business improvements or expansions, including new capital purchases, technology upgrades, and job creation. Regular operating expenses and real estate purchases are excluded for this category.
Specifics for Different Types of Investments:
* Purchase of Business Vehicle: Up to $15,000 of the vehicle’s cost is eligible if essential.
* Operating Expenses: For new businesses, a maximum of six months of operating expenses is eligible. For existing businesses purchased, the eligible operating expenses are limited to three months. The same limit applies to new franchise locations.
* Inventory: For existing businesses, up to three months of new inventory related to improvement or expansion plans is eligible, provided it is substantially different from existing products.
Ineligible Investments:
The Base Stream shares similar exclusions with the Regional Stream:
* Cash and working capital reserves.
* Wage payments to yourself and close family members.
* Refundable deposits and real estate-related costs.
* Professional fees associated with business acquisition.
Timing of Investment:
As with the Regional Stream, the BC PNP will only recognize investments made after the invitation to apply. Investments made before this invitation are not eligible. Ensure you make financial commitments only after signing the performance agreement and obtaining a valid work permit.
Ineligible Business Types under BC PNP Streams:
Before deciding on the type of business, you need to ensure that the business you have in mind is not listed as ineligible by the BC PNP authorities.
The BC PNP does not support investments in the following business types:
Key Sectors and Significant Economic Benefits under the Base stream;
The Base Stream identifies certain businesses as key sectors. To qualify for additional key sector points, your proposed business plan must include a key sector as a core component. Minor or tangential involvement is not sufficient. The eligible key sectors include:
Significant Economic Benefits that can enhance your application include:
Last topic to discuss regarding eligible businesses is to verify whether the BC Base and Referrals streams will accept franchises as eligible businesses. Franchises may qualify as eligible businesses if you can show that the proposed franchise is well-established, meaning it has the ability to expand, a solid financial history, and has been operating for at least 60 months (5 years). If invited to apply, your application must include proof of support from the franchisor for setting up and running a new franchise location. Additionally, the franchisor must be willing to assist with your immigration process by providing necessary documents.
If you are planning to establish a new franchise location, ensure you obtain a disclosure document from the franchisor before making any investment decisions. The BC PNP may request a copy of this disclosure document during the application process. According to Section 5(4) of The Franchises Act, the disclosure document must include:
a) prescribed financial statements;
b) copies of all proposed franchise agreements and other related agreements to be signed by a prospective franchisee;
c) prescribed statements intended to help a prospective franchisee make informed investment decisions;
d) other prescribed information;
e) copies of other prescribed documents.
Are you interested in applying for the Canada Investor Visa? At INGWE we are EXPERTS and we can support you throughout the process, we have licensed business immigration professionals ready to help. Get a FREE email assessment, click here.
Choosing the right business stream under the BC PNP requires careful consideration of your business type and its alignment with the investment criteria. Whether applying under the Regional or Base Business Stream, it is essential to ensure that your business fits the specific requirements and eligible investment categories of your chosen stream. The success of your application will depend on aligning your business plan with the program’s guidelines and securing the appropriate investment amounts and types as detailed in your performance agreement. By understanding these requirements and selecting a business type that meets the criteria, you can enhance your chances of a successful application.
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