OINP – Entrepreneur Stream

The Entrepreneur Stream designed to support foreign nationals who are looking to start a new business or buy an existing business in Ontario and intent to live in Ontario permanently

The Master Graduate stream of International Graduates under Human Capital Category is one of several immigration streams of the Ontario Immigrant Nominee Program(OINP), a Provincial Nominee Program (PNP) operated by the province of Ontario. The Entrepreneur Stream targets the foreign nationals who are looking to start a new business or to buy an existing business in Ontario. The successful applicant will receive a temporary Work Permit Support Letter to establish the business in Ontario based on a performance agreement. Once the business has been fully established in Ontario, the OINP will offer an opportunity to entrepreneur to be nominated for permanent residence in Ontario.

The applicant must be actively invovled on an ongoing basis in the management of the purposed business. The OINP Entrepreneur Stream operates on the basis of Expression of Interest (EOI) where the eligible applicants will be invited to submit a complete application before applying.

Overview of Process

The OINP Entrepreneur Stream is a two-stage process for which the following steps are required to participate in this stream. Additional information for each step is provided further.

Stage 1:

  • Step 1 – Procedure: The candidate must meet all the eligibility requirements before registering for the online Expression of Interest (EOI).
  • Step 2 – Registration: After checking eligibility, the candidate will need to submit an EOI to OINP.
  • Step 3 – Invitation To Apply: If the EOI is accepted, the candidate can prepare an application for the Entrepreneur Stream.
  • Step 4 – Submit Application: The candidate must submit a complete package online application and ensuring that you must upload all the required supporting documents and answer all the mandatory questions in the online application. With the application, the applicant must also need to pay the application fee of $3,500 CAD per applicant through the electronic payment.
  • Step 5 – After Apply: The information provided by the applicant in the online application will be verified by the OINP to ensure the legitimacy, accuracy and completeness. If OINP found the application to be incomplete, they will not process the application and refund your payment. As a part of the application assessment, the applicant will be required to attend a mandatory interview with OINP.
  • Step 6 – Performance Agreement: If the application is approved by the OINP, the applicant will be required to sign a Performance Agreement which will outline the commitments made by the applicant regarding job creation and investing in Ontario.

Stage 2

  • Step 7 – Temporary Work Permit (Before Arriving): After the application approval and signing a Performance Agreement, the applicant will be issued a Temporary Work Permit Support Letter to apply for Temporary Work Permit in the IRCC to establish a business in Ontario.
  • Step 8 – Business Establishment (After Arrival): Once the applicant arrived in Ontario, the applicant will build their business and implement their business plan with 20 months.
  • Step 9 – Nomination: The applicant may be nominated by the OINP for the Canadian Permanent Residence if the applicant meets all the commitments mentioned in the Performance Agreement.
  • Step 10 – After Nomination: The successfully nominated applicant must apply for permanent residence status to the IRCC within the six months of being nominated by OINP. After the attainment of Permanent Residence, the post-nomination monitoring will continue for 36 months.

Eligibility Requirements For Applicant

Business Experience

To be eligible for the Entrepreneur Stream, the candidate must have full-time business experience of at least 24 months in the last 60 months which must be as a Business Manager or Senior Manager (Business Management). If the applicant has the experience of both the Business Manager or Senior Manager they must choose only one to use for EOI which is most recent and relevant to the proposed business.

Investment Required

The Entrepreneur Stream requires significant net worth and personal investment funds which is the essential part of the applicant and the establishment & operation of the business which varies depending upon the type of business and the proposed location of the business.

  • Inside Greater Toronto Area: If the purposed location of the business is located inside the Greater Toronto Area, the candidate must have the net worth of at least $800,000 CAD and must make a minimum personal investment of $600,000. The applicant must control at-least one-third equity of the proposed business to be eligible for the stream.
  • Outside the Greater Toronto Area: If the purposed location of the business is located inside the Greater Toronto Area, the candidate must have the net worth of at least $400,000 CAD and must make a minimum personal investment of $200,000. The applicant must control at-least one-third equity of the proposed business to be eligible for the stream.
  • ICT / Digital Communications Sector: If the purposed business will be in Information Communications Technology(ICT) or in Digital Communications Sector, the candidate must have a net worth of at least $400,000 and must make a minimum personal investment of $200,000. It can be in any location of Ontario, outside or inside the Greater Toronto Area.

The applicant needs to demonstrate the net worth by providing a third-party verification report which must be prepared by the authorized service provider.

Business Partner

If the foreign national business partner is applying with the candidate, both must meet the minimum eligibility requirements of the Entrepreneur Stream for which they can claim additional points in the EOI. The applicant can include only one foreign national business partner.

Eligibility Requirements For Business

General Requirements

In order to be eligible for Entrepreneur Stream, the purposed business must also meet the following requirements. The purposed business must be:

  • a permanent business in Ontario, not project-based or seasonal businesses.
  • having a place of business in Ontario all the time.
  • to make profits from active (earned) income through the sale of goods and/or services.
  • comply with any regulatory or licensing requirement or applicable provincial, municipal or federal legal that governs its operation which also includes the Ontario Laws, including but not limited to health & safety, employment standards and labour relations legislation.

The third-party investor must be one of the following:

  1. Schedule I Bank – The third-party must be a domestic bank that is authorized under the Bank Act to accept the deposits. The bank may be eligible to deposit the insurance provided by the Canada Deposit and the Insurance Corporation.
  2. Schedule II Bank – The third-party must be a foreign bank that is authorized under the Bank Act to accept the deposits. The bank may be eligible to deposit the insurance provided by the Canada Deposit and the Insurance Corporation. The foreign bank subsidiaries are controlled by the eligible foreign institutions.
  3. Institutional Investor

If Purchasing Existing Business

If the applicant is purchasing the existing business of Ontario, the business must also meet the eligibility requirements which are as follows:

  • The existing business must be operated continuously by the same owner or a group of owners from the last 60 months before the applicant buy this business.
  • It must be a complete (100%) ownership transfer from the previous owner(s) to the applicant and business partner(if applicable) and/or applicant’s third-party investor(if applicable). The previous owner of the business must not retain any share of the business.
  • The current or former OINP business stream nominee must not have been previously operated or owned the proposed business.
  • The applicant must maintain all the existing permanent full-time jobs at minimum, the current wage levels and employment terms of existing staff.
  • The business plan must demonstrate the ways by which the applicant will grow the business.
  • In the business plan, the applicant must demonstrate that 10% of the personal investment will be allocated towards expanding and improving of the business in Ontario.

Job Creation

The applicant must commit to creating permanent full-time jobs for the Canadian citizens or permanent resident depending on the purposed business location and type of business.

  • Within the GTA: If the purposed business located inside the Greater Toronto Area (GTA), the business must create at least two permanent full-time jobs for Canadian citizens or permanent residents.
  • Outside GTA or in ICT/DCS: If the purposed business located outside the Greater Toronto Area (GTA) or in the ICT/Digital Communications Sectors, the business must create at least one permanent full-time job for a Canadian permanent resident or citizen.

Business Visit

If the applicant has purchased or planning to purchase an existing business, the applicant must make at least one business-related visit to Ontario in the last 12 months prior to the date of registering EOI.

Ineligible Business

The OINP will not accept applications or EOI’s for the businesses those who fall under the ineligible type of businesses.

List of ineligible type of businesses in Greater Toronto Area (GTA):

  • Existing Franchises (except expanding of new foreign franchises) in Ontario.
  • Gas Stations
  • Bed And Breakfasts
  • Tire Recycling
  • Holding Companies
  • Automated Car Wash Operations
  • Pawnbrokers
  • Laundromats
  • Scrap Metal Recycling
  • Business-related to Pay-Day Loan
  • Earlier owned or operated the business by a person who received a certificate of nomination under the investor component of the Opportunities Ontario program or in the Entrepreneur Category.
  • A business that is involved in the production, distribution or the selling of pornography or sexually explicit products, or providing sexually oriented services.

List of ineligible type of businesses outside the Greater Toronto Area (GTA):

  • Tire Recycling
  • Holding Companies
  • Automated Car Wash Operations
  • Pawnbrokers
  • Laundromats
  • Scrap Metal Recycling
  • Business-related to Pay-Day Loan
  • Earlier owned or operated the business by a person who received a certificate of nomination under the investor component of the Opportunities Ontario program or in the Entrepreneur Category.
  • A business that is involved in the production, distribution or the selling of pornography or sexually explicit products, or providing sexually oriented services.

Nomination Requirements

Language Proficiency

To be eligible for the OINP Entrepreneur Stream, the candidate must demonstrate the language proficiency level in all four competencies – writing, reading, listening, and speaking through valid test results obtained within the last two years prior to the applying of application.

The candidate must able to demonstrate the ability of language skills with the Canadian Language Benchmark (CLB) Level 4 or higher through the following valid English or French test:

  • For English:
    • International English Language Testing (IELTS) – General Training test only
    • Canadian English Language Proficiency Index Program (CELPIP) – General test only
  • For French:
    • Test d’évaluation de français pour le Canada (TEF Canada)
    • Test de connaissance du français pour le Canada (TCF Canada)

Residency Requirement

While establishing the business in Ontario, the applicant must be residing in Ontario physically for 75 percent which means nine months out of the year of the whole period.

The applicant must also meet all the commitments mentioned in the Performance Agreement within the 20 months after the arriving of the applicant in Ontario. 

Application Procedure

Candidates who meet the minimum requirements of the Entrepreneur Stream can register a profile and submit an EOI. This can be done by creating a ONe-Key account in the OINP e-Filing Portal. After submitting a profile to OINP, the candidates will be assigned a score and ranked with each other using the Scoring Factors And Breakdown of Points where the highest-ranking applicants will be invited to apply to the stream.

After submitting an application to OINP the eligible candidate may receive an ITA, after which the applicant may need to submit all the required documents and information including the review of personal net worth and business plan and the application fee of  $3,500 CAD per applicant within the 90 days. The net worth must be verified by a qualified third party. After submitting a complete application, the applicant will be required to attend a mandatory in-person interview at the Ontario OINP office. The expenses of travel and accommodation for this interview will be paid by the applicant.

On the approval of the application, the applicant will required to sign a Performance Agreement with the OINP. After that, the OINP will issue a Work Permit Support Letter, which allows the foreign workers to work in Canada while establishing their business practice by applying for a Temporary Work Permit. To apply for a Temporary Work Permit, the applicant submit their application to IRCC with a work permit support letter issued by the OINP.

Upon arriving in Canada, the applicant has to implement their business plan in maximum of 20 months. The applicant will be required to submit a final report to OINP between 18 to 20 months which will act as a request for nomination. The applicant will then receive an official provincial nomination if their final report is approved by the OINP.

After receiving a provincial nomination from the OINP, the applicant may apply for the Canadian Permanent Residence by completing and submitting a paper-based application by mailing to the appropriate application centre which is generally processed within 18 months.

Scoring Factors and Breakdown of Points

The applicant can claim their points on the basis of Human Capital Factors, Investment Factor and Business Concept for which the maximum score is 200 points.

Scoring Sections Points
Human Capital Factors 80
Investment Factors 46
Business Concept 74
Total Points Available 200

Human Capital Factors

Business Experience

Experience Total Duration Points
Business Owner Less than 24 months Not eligible
24 – 47 months 13
48 – 59 months 19
60 months 25
OR
Senior Manager Less than 24 months Not eligible
24 – 47 months 13
48 – 59 months 19
60 months 25
Total Points Available 25

Past Specific Experience

The applicant can claim points of Past Specific Experience in an export-trade business, high growth business and transferable skills. The experience must be gained within the last 60 months for which the maximum points will be claimed 35 points.

  • Export-Trade Business: The applicant experience must be in a kind of business that has been exporting at least 20 percent of total goods/services to a foreign market for the continuously two  year prior to the registration of EOI which must be demonstrated by the supporting documents like purchase orders, financial statements with export declarations or invoices after receiving ITA.
  • High Growth Business: The applicant experience must be in a kind of business that has experienced at least 20 percent of the increase in revenue continuously for two years which must be demonstrated by the supporting documents like financial statements after receiving ITA.
  • Transferable Skills: The applicant must have experience related to the industries and/or direct experience with in the last five years prior to the registration date of EOI which must be demonstrated by the supporting document like resume or reference letter after receiving the ITA.
Past Specific Experience Points
None 0
Yes: one past specific experience 15
Yes: two past specific experiences 25
Yes: three past specific experiences 35
Total Points Available 35

Level of Education

There is no mandatory level of education required for the Entrepreneur Stream but the applicant can claim a maximum number of 10 points on the basis of the highest level of education completed.

If the candidate claiming to have two years or more post-secondary education it must be a Canadian education or its equivalent education from another country. The equivalent education must be proved through the Educational Credential Assessment (ECA) report which shows that candidate education is equivalent to Canadian education. The ECA must be obtained through the designated organization by the IRCC. The ECA must not be older than 5 years on the date applying to the OINP. Language Training such as ESL courses will not be considered by OINP towards meeting the post-secondary requirement.

Level of Education Points
No post-secondary education 0
2 Year Program (post-secondary degree or diploma) 5
3 Year Program (post-secondary degree or diploma) 10
Total Points Available 10

Official Language Ability

Official Language Ability Points
None or minimal (CLB 3 or below) 0
Basic understanding (CLB 4) 5
Intermediate and advanced (CLB 5 or higher) 10
Total Points Available 10

Investment Factors

Net Worth

Personal Net Worth Points
If the proposed business
will be within the GTA		 Less than $800,000 Not eligible
$800,000 to $2,499,000 5
More than $2,500,000 10
OR
If the proposed business
will be outside the GTAORIf the proposed business
will be in the ICT/Digital
Communications Sector
(regardless of location)		 Less than $400,000 Not eligible
$400,000 to $999,999 10
More than $1,000,000 15
Total Points Available 15

Investment Amount

Investment Amount Points
If the proposed business
will be within the GTA		 Less than $600,000 Not eligible
$600,000 to $1,499,999 10
$1,500,000 to $2,999,999 15
More than $3,000,000 20
OR
If the proposed business
will be outside the GTAORIf the proposed business
will be in the ICT/Digital
Communications Sector
(regardless of location)		 Less than $200,000 Not eligible
$200,000 to $499,999 15
$500,000 to $799,999 20
More than $800,000 25
Total Points Available 25

Business-Related Visit

Business Related Visits to Ontario Points
No 0
Yes 6
Total Points Available 6

Business Concept

Business Model

Under the Business Model, the applicant can claim a maximum of 15 points. The business model is written document also refer to a business plan which includes:

  • Describe the business model and strategy for the business to become viable in Ontario.
  • Describe the product or services being offered by the proposed business.
  • How does the proposed business plan to generate a profit/revenue?
  • What will be your role in helping the business become successful, and how does your background and previous business ownership or management experience help you to establish and operate the proposed business?
  • If you are proposing to partner with a local or a foreign national business partner, you must provide a rationale for the business partnership and describe your business relationship with each partner. You must identify the partner(s), their proposed ownership percentage, whether the local partner(s) will make any investment into the business, and what role, if any, the partner(s) will have in the business.
  • If purchasing an existing business: Provide a description and rationale of why you have chosen this business and how you plan to grow or expand the business.

The business model is assessed based on the following criteria:

  • An unsatisfactory/unclear business model (0 points) will be determined if any of
    the following are identified:

    • The business model does not clearly identify and/or describe the business operation, or
    • The business model does not clearly identify the products and/or services being offered, or,
    •  the Business model does not provide details of the applicant’s role.
    • If purchasing an existing business: a description of the existing business and proposed expansion is not provided or is vague and unclear.
  • A fair business model (7 points) will be determined if all of the following are met:
    • The business model is clearly identified and describes the business operation from start to finish, and
    • The business model clearly identifies the services and/or products being offered, and,
    • The business model clearly identifies the applicant’s role.
    • If purchasing an existing business: A description of the existing business and the proposed expansion is clear.
  • A good business model (15 points) will be determined if all of the following are met:
    • Applicant’s proposed duties with the business are consistent with the applicant’s experience and,
    • The business model identifies a clear strategy to become viable in Ontario and,
    • The proposed scale of business is consistent with industry/regional norms.
    • If purchasing an existing business: A description of the existing business and proposed expansion is clear.
Business Model Points
Unsatisfactory/Unclear 0
Fair 7
Good 15
Total Points Available 15

Market Research

The applicant must provide an effective market entry strategy to show how the proposed business will be successful in Ontario. If the applicant is planning to purchase an existing
business, they must be able to demonstrate how the business will grow and expand
under their management.

Market research is assessed based on the following criteria:

  • An unsatisfactory/unclear market research analysis (0 points) will be determined if any of the following are identified:
    • The applicant has not conducted any research activities, or
    • Does not provide a description of how market factors impacting the proposed business would be addressed, or
    • It does not provide an understanding of the target market and does not clearly support ideas with research sources.
  • A fair market research analysis (7 points) will be determined if all of the following are met:
    • Marginal research activities conducted, but may not be linked to the proposed business or are unclear, and
    • Marginal explanation of target market provided, with minimal support for ideas from credible research sources, and
    • Marginal description of critical market factors and how they will be addressed.
  • A good market research analysis (15 points) will be determined if all of the following are met:
    • Provides a clear and reasonable explanation of research activities and can link market research to the proposed business, and
    • Demonstrates a clear understanding of the target market and can support ideas with credible research sources, and
    • It provides a clear summary of critical market factors and how they will be addressed.
Market Research Points
Unsatisfactory/Unclear 0
Fair 7
Good 15
Total Points Available 15

Economic Benefit And Key Sector

The applicant needs to explain how the proposed business will generate significant economic benefits to Ontario. The applicant also claims points depending on whether the proposed business is in a targeted key sector determined by the Ontario government. This is not a mandatory eligibility requirement to be considered for the Entrepreneur Stream. These are the following key sectors which have been defined as economic priorities for Ontario:

  • Aerospace
  • Automotive
  • Chemical and biochemical
  • Cleantech
  • Financial Services
  • Food and Beverage Manufacturing
  • Forestry
  • Industrial Automation and Robotics
  • Information Technology
  • Life Sciences
  • Mining
  • Tourism

The significant economic benefit and the key sector is assessed based on the following criteria:

  • An unsatisfactory/unclear significant economic benefit and key sector analysis (0 points) will be determined that the business concept does not identify or substantiate any key sectors or any significant economic benefits.
  • A fair significant economic benefit and key sector analysis (5 points) will be determined if the proposed business has substantiated at least 1 key sector or at least 1 economic benefit.
  • A good economic benefit and key sector analysis (10 points) will be determined if
    the proposed business has substantiated at least 1 key sector and at least 1 economic benefit.
Significant Economic Benefit and Key Sector Points
Unsatisfactory/Unclear 0
Fair 5
Good 10
Total Points Available 10

Investment Allocation

The applicant must provide a breakdown of how the applicant intends to allocate their capital investment to grow and expand the proposed business. The investment allocation is assessed based on the following criteria:

  • An unsatisfactory/unclear investment allocation analysis (0 points) will be determined if any of the following are identified:
    • No breakdown provided, or
    • Little to no information on how to grow the business, or
    • Ineligible expenses listed in breakdown.
  • A fair investment allocation analysis (5 points) will be determined if all of the following are met:
    • A limited breakdown provided, lacking clarity; and
    • Limited information on the plan to grow/expand the proposed business.
  • A good investment allocation analysis (10 points) will be determined if all of the following are met:
    • Full investment breakdown provided; and
    • Thorough explanation of the plan to grow/expand the proposed business.
Investment Allocation Points
Unsatisfactory/Unclear 0
Fair 5
Good 10
Total Points Available 10

Business Location

The applicant may claim points on the basis of the proposed business location.

The OINP uses Statistics Canada’s Census Metropolitan Area (CMA) and Census Agglomeration (CA) data to divide business locations into three categories based on population size:

  • Category A: Census Metropolitan Areas with a population of 175,000 or more.
  • Category B: Census Metropolitan Areas and Census Agglomeration areas with a population greater than 100,000 but less than 175,000.
  • Category C: All other locations that do not fall within Category A or B that have a population of 100,000 or below.

CMAs and CAs consisting areas of more than one neighbouring municipalities situated around a population centre which are also known as core. A CMA is defined as having a total population of at least 100,000 of which 50,000 or more live in the core whereas the CA is having a core population of at least 10,000. Please note that some locations may be part of larger categories. Therefore, you may find your business location is in a CMA or CA.

Business Location Points
CMA with a population of 175,000 or more 0
CMA or CA with a population greater than 100,000 but less than 175,000 5
population in other locations of 100,000 or below 10
Total Points Available 10

Job Creation

The applicant may claim points based on creating a permanent full-time jobs offers for Canadian citizens or permanent residents within the first 20 months of establishing your business.
Applicant will receive points for job creation based on the following table:

Job Creation Points
1 for ICT/Digital Communications sector or outside GTA or 2 for inside GTA 3
3 – 4 jobs 5
5 or more jobs 7
Total Points Available 7

Applicant may also claim additional points based on the National Occupational Classification (NOC) 0, NOC A or NOC B jobs, which the proposed business will create for Canadian citizens or permanent residents. Please include a NOC designation for each new job created. This is not a mandatory requirement of the Entrepreneur Stream.

The job creation is assessed based on the following criteria:

  • An unsatisfactory/unclear job creation analysis (0 points) will be determined if the business concept does not propose or substantiate hiring any high-skilled positions (NOC 0, A or B).
  • A fair job creation analysis (5 points) will be determined if the business concept substantiates the creation/maintenance of 1 high-skilled position (NOC 0, A or B).
  • A good job creation analysis (7 points) will be determined if the business concept substantiates the creation/maintenance of 2 or more high-skilled positions (NOC 0, A or B).
N0C 0, A or B Jobs Creation Points
0 NOC 0, A or B job(s) 0
1 NOC 0, A or B job(s) 5
2 NOC 0, A or B job(s) 7
Total Points Available 7

 

Ontario Entrepreneur – Recent Draws & Invitation History