Immigration, Refugees, and Citizenship Canada (IRCC) receive thousands of applications for these Canada investor visa programs yearly. They have imposed strict requirements to ensure only the best applicants are admitted to Canada. This means many foreign entrepreneurs and business owners have their Canada investment visa applications rejected.
In this guide, we will discuss the five main reasons why IRCC rejects Canada investor visa applications.
Canada currently offers multiple investment visa routes. This includes:
Intra-Company Transfer Program Visa
Intra Company Transfer Canada is for business owners who operate a business in their home country and wish to expand to Canada. Successful business owners will be issued a work permit that allows them to come to Canada and establish their businesses. They will then qualify for permanent residence after a certain period.
C11 Entrepreneur Visa
Self-employed individuals who intend to start a business and foreign entrepreneurs who intend to buy a business in Canada can receive a work permit under the C11 Entrepreneur Visa program. This work permit is typically valid for two years and can be extended multiple times. Successful individuals will eventually qualify for permanent residence after operating their businesses for a specific time.
New Owner-Operator LMIA
The Owner-Operator LMIA program is another program that issues a work permit to business owners who intend to set up or purchase a business in Canada. Such business owners must be actively involved in operating their businesses. Successful Owner- Operator LMIA applicants can receive permanent residence within just one year of finalizing their decision to run a business in Canada.
Business Provincial Nominee Programs – Entrepreneur Immigration
Many Provincial Nominee Programs offer permanent resident routes for individuals with the means and willingness to set up, purchase, and operate a business in specific Canadian provinces. Each program has distinct requirements, so it is important to research each before applying.
5 Big Reasons for Canada Investor Visa Rejection
We have described five of the biggest reasons why IRCC rejects Canadian investor visa applications below:
1. Poor Business Plan
Investor applicants must include a comprehensive business plan in their application for any investment programs mentioned above. This business plan includes many key pieces of information, such as market trends that support the need for the investor’s business, the funds the investor has available, the types of activities the business will engage in, and financial forecasts for future spending and earnings.
This business plan is designed to demonstrate that the investor has done adequate research and that they have a solid plan that they will follow to establish and operate their business in Canada.
Your business plan must present a convincing case for why your business will likely succeed in the country. For this reason, investors who don’t put effort into creating a “great business plan” are usually rejected.
Solid Business Plans & Business Strategy For Entrepreneurs
2. Failure to Demonstrate Sufficient Proof of Funds
Foreign investors must demonstrate that they possess enough funds to purchase or set up and operate their business in Canada. Most Canada investor visa programs explicitly state the minimum investment amount required to be eligible to apply.
Prospective investors must ensure they possess these funds and can prove their existence to IRCC officials. Some methods of proof include bank statements and a list of outstanding loans and debts.
Investors who don’t possess enough funds or can’t prove they have access to funds are rejected.
3. There’s No Significant Benefit Clearly Stated
Foreign investors must show that their business operations significantly benefit the Canadian economy, society, and culture. They can do this in many ways, such as:
Showing that the business will create jobs for Canadians
Showing that the business will offer innovations that positively impact the rest of the industry
Showing that the business will promote tourism to specific Canadian communities
Showing that the business will help Canada’s natural environment
If you can’t demonstrate multiple benefits your business offers to Canada, your application could be rejected.
4. No Justifiable Reasons For Your Company to Set Up or Invest in Canada
Investors must present a good reason for their business to set up or invest in Canada. For example, a business doing incredibly well in its home country and having resources to spare can expand to Canada and succeed there. However, a struggling business in its home country likely won’t do any better in Canada.
5. Not Hiring Professionals for the Application
IRCC is incredibly thorough when they assess investor visa applications. Their officers look for even minor reasons to reject applicants.
For this reason, investors who create applications without getting them reviewed and assessed by professionals beforehand are rejected.
Streamline Your Business Immigration Process with ELAAR
If you’re interested in optimizing your Canada investor visa application and getting Canada PR by investment, please get in touch with Elaar Immigration. Our experienced Regulated Canadian Immigration Consultants understand what IRCC officers check for when assessing these applications. They can guide you in completing each step of the application process and maximize your chances of succeeding.