Tightening the Reins on Business Immigration

Ontario Regulation 439/24, enacted under the Ontario Immigration Act, 2015, introduces amendments to Ontario Regulation 422/17, which governs immigration and business establishment in the province. The changes aim to refine the requirements for applicants establishing businesses under immigration pathways.
One of the major revisions involves the investment requirements for applicants. Paragraph 4 of subsection 13(2) now mandates that applicants commit to reasonable investments in essential business operations, explicitly excluding cash, cash equivalents, working capital, and wages paid to the applicant or their family. This ensures that investments focus on tangible aspects critical to the business’s growth and sustainability. Similarly, the amendments require that at least 10% of the applicant’s investment in a purchased business be allocated to its improvement or expansion within Ontario.
Job creation commitments have been refined in Paragraph 6, requiring applicants to create jobs for Canadian citizens or permanent residents within the first 20 months of establishing the business. To ensure labor market integrity, the regulation incorporates references to the Government of Canada Job Bank for wage levels and employment terms. Paragraph 6.1 explicitly prohibits the hiring of non-residents for these roles, further emphasizing the policy’s focus on benefiting local workers.
Equity control and financial practices are also addressed. Applicants must now hold at least one-third of the equity in their business and are barred from using investments primarily to derive passive income, such as interest, dividends, or capital gains. The regulation mandates that businesses generate active income, ensuring they contribute meaningfully to the economy.
Regulatory compliance and business permanence are central to the amendments. Businesses must adhere to all applicable legal and licensing requirements and operate as permanent entities rather than seasonal or project-dependent ones. They must also maintain a physical presence in Ontario, underscoring the province’s goal of fostering enduring contributions to its economic landscape.
Performance agreements between applicants and the government are now required. These agreements outline the commitments applicants must fulfill within 20 months of arriving in Ontario. Non-compliance could result in significant repercussions, emphasizing accountability. Certain outdated provisions in subsection 13(3), such as Paragraphs 4, 4.1, 6, and 7, have been revoked, reflecting the updated priorities and making the processes more efficient.
By emphasizing active investment, job creation for local residents, regulatory compliance, and permanent business operations, the amendments aim to bolster Ontario’s economic growth while ensuring immigrants’ meaningful integration into the provincial economy.
Ontario (439-24) November 16, 2024