Immigration and Refugee Protection Regulations (SOR/2002-227)

Marginal note:Qualifying business

• 98.06 (1) For the purposes of paragraph 98.01(2)(d), a qualifying business with respect to an applicant is one

  • (a) in which the applicant provides active and ongoing management from within Canada;

  • (b) for which an essential part of its operations is conducted in Canada;

  • (c) that is incorporated in Canada; and

  • (d) that has an ownership structure that complies with the percentages established under subsection (3).

• Marginal note:Exception — intention

  (2) A business that fails to meet one or more of the requirements of paragraphs (1)(a) to (c) is nevertheless a qualifying business if the applicant intends to have it meet those requirements after they have been issued a permanent resident visa.

• Marginal note:Ownership structure

  (3) The Minister must establish

  • (a) the minimum percentage of voting rights that are attached to all the outstanding shares of the corporation that must be held by the applicant; and

  • (b) the maximum percentage of the total amount of the voting rights attached to all the outstanding shares of the corporation that may be held by persons or entities, other than qualified participants.

• Marginal note:Qualified participant

  (4) For the purpose of paragraph (3)(b), a qualified participant is

  • (a) an applicant in respect of the business;

  • (b) a foreign national who has been issued a permanent resident visa as a member of the start-up business class in respect of the business; or

  • (c) a designated entity.

• Marginal note:Factors

  (5) The Minister must establish the percentages referred to in subsection (3) on the basis of the following factors:

  • (a) the number or projected number of start-up business class applicants and designated entities;

  • (b) the proportion per year of start-up business class applications approved, withdrawn or refused, as well as the grounds for refusal;

  • (c) the average size of businesses for which commitments are made and the average percentage of voting rights held by applicants and designated entities;

  • (d) the average size of start-up companies in Canada and the average percentage of voting rights held by the founders of those companies and other investors in those companies;

  • (e) the number, type and industry sector of businesses successfully started in Canada by approved start-up business class applicants per year and the most common ownership structures for businesses of those types in those industry sectors;

  • (f) the ownership share usually required for a business started in Canada by a member of the start-up business class to be successful and for the member of the class to become economically established in Canada; and

  • (g) industry standards and best practices, as determined in consultation with organizations referred to in section 98.02, designated entities or other relevant stakeholders.

• Marginal note:Public notice

  (6) The Minister must publish the percentages established under subsection (3) on the Department’s website.