Canada preferred over USA by Immigrant Investors
Canada is preferred over USA for its friendly Immigrant Investor Policy
Canada, USA and other developed countries allow Immigrant investors to be a part of their nation and contribute to the national economy by making huge investments in various sectors.
In 1990, United States had started EB-5 preference category for immigrants looking forward to enter US and getting engaged in a commercial venture.
In 1986, Canada Immigrant Investor program was introduced. All foreign business people with managerial and business experience for at least two years in the last five years are eligible.
Why the preference?
An immigrant should have a net worth of $800,000 out of which they should invest a minimum amount of $400,000 into an approved government security for a minimum period of five years in Canada. USA requires the investor to make an investment of a minimum of $500,000 in rural areas which otherwise should be $1,000,000.
EB-5 program requires active involvement from the investors, whereas Canadian Immigrant Investor program is a passive program.
The former expects the investor to run a business, manage employees whereas the former allows one to invest even without getting involved personally. The investor in Canada can also start his business if he wishes too without any geographical boundaries. There is no limited number of employees to be hired.
Canadian Immigrant Investor program allows an investor to first apply, meet all the requirements, clear the interview and other processes from the Visa Office and the final stage is to make investments. One has to bear the expenditure of processing of the application. EB-5 requires the investor to make a qualifying investment and then start filing forms and meet other formalities. The applicant can enter US and stay there for two years even before the approval is made.
EB-5 Visa provides a green card which is conditional whereas Canada Immigrant Investor Program provides unconditional permanent resident status immediately after reaching the nation.
The document requirement is more complicated for USA than Canada.
Investment in USA is associated with risk; if the business runs at a loss then the individual loses his money. In Canada, one can loan an amount for making investments and the interest on this amount is his loss rather than the principal amount.
An applicant has to pay USD 50,000 as an application process apart from the investment he is to make in USA. This amount is non-refundable if the application is rejected. While applying for Canadian Visa one has to pay an amount of CAD 6000 for applicant, spouse and two dependent children.