On May 9, 2016, the Ontario Immigrant Nominee Program (“OINP”) announced that the Province of Ontario had received a sufficient number of OINP applications to meet its 2016 federal allocation.  As a result, it has placed a temporary pause on the intake of applications under what it refers to as “select, high-volume” OINP streams.  However, it claims that other lower-volume OINP streams continue to be available.

The OINP announcement confirms the following facts:

As previously mentioned, on April 1, 2015, Citizenship and Immigration Canada published regulations implementing its Electronic Travel Authorization (“eTA”) program.  The eTA program was modeled after the U.S. Electronic System for Travel Authorization, which is a mandatory registration required for foreign travelers who wish to enter the United States under the Visa Waiver Program.  Once implemented, it will require most visa-exempt foreign nationals who travel to Canada without a temporary resident visa (“TRV”) to obtain an eTA.

Under the eTA program, applicants will pay a $7.00 CAD processing fee electronically in connection with their online eTA application.  Once issued, an eTA will be valid for five years from the day on which it is issued or until the applicant’s passport or travel document expires, whichever comes first.  The regulations also provide an officer with the ability to cancel an eTA that was issued to a foreign national if the officer determines that the foreign national is inadmissible or if the foreign national becomes subject to a declaration made by the Minister under the Immigration and Refugee Protection Act.

The regulations initially required eTAs to be mandatory as of March 15, 2016.  Fortunately, the new Liberal Government has decided to delay the enforcement of the eTA requirement until Fall 2016 (no exact date end date has been announced) by implementing a “leniency period.”

During the leniency period, visa-exempt foreign nationals who do not have an eTA will still be permitted to enter Canada as long as they have appropriate travel documents, such as a valid passport.  Nevertheless, visa-exempt foreign nationals are encouraged to obtain an eTA as soon as possible.

Of course, even after the leniency period has ended, not everyone will require an eTA.  For example, United States citizens are exempt from the eTA requirement.  Also, as the eTA requirement is intended to apply to visa-exempt applicants, a foreign national who already holds a TRV is also not required to obtain an eTA.  In addition, in order to reduce the duplication of information to be provided by visa-exempt foreign nationals, if a visa-exempt applicant applies for a work permit or study permit, they will not need to also obtain an eTA.  A complete list of eTA exemptions appears in my previous article.

As previously mentioned, when the Ontario Immigrant Nominee Program (“OINP”) announced the termination of its Investor Stream on October 29, 2015, it promised that it would create new Entrepreneur and Corporate Streams to replace it.  On December 18, 2015, the OINP published complete eligibility criteria and application guidelines for these new business streams.  Details of both are provided below.

The Corporate Stream

Overview

The Corporate Stream is intended to support established international corporations looking to expand into Ontario or buy an existing business.  The OINP is currently accepting applications under this stream.

An eligible corporation begins the process by submitting an application under the Corporate Stream.  If the application is approved, the corporation will be required to sign a Performance Agreement, which outlines its commitments to invest and create jobs in Ontario.  Key staff will then be issued temporary work permit support letters, which they can use to obtain work permits.

Once the key staff have arrived in Ontario, the corporation has up to 20 months from the date that they arrive to implement the business plan, actively manage the business, and meet all of the commitments outlined in the Performance Agreement.  All permanent full-time jobs that have been created must have been continuously filled for at least 10 months, prior to the corporation’s submission of its Final Report.

The applicant corporation is responsible for filing a Final Report with the OINP between 18 and 20 months after the key staff have arrived in Ontario with their valid work permits.  The Final Report must be submitted to the OINP in order to initiate the nomination process.

If the corporation is successful in meeting the commitments outlined in its Performance Agreement, the key staff will be eligible to apply for nomination.  If nominated by the OINP, these key staff members may apply for permanent residence under the Provincial Nominee Class.

Eligibility Requirements

Corporate/Investment Requirements

To be eligible under the Corporate Stream, the corporation must meet the following requirements:

• The corporation must have already been established for at least 36 months at the time of the application.
• The corporation must invest a minimum of $5 million CAD in a new or existing Ontario business.  The investment funds must have been obtained from lawful sources.
• The proposed investment activity must be of significant economic benefit to Ontario.
• If the corporation is purchasing an existing Ontario business, the following additional criteria apply: (1) the acquired business must have been in continuous operation by the same owner for the preceding 60 months, (2) the purchase must completely transfer ownership from the previous owner(s) to the corporation, (3) the Ontario business must not have been previously owned/operated by a current or former OINP business stream nominee, (4) the proposed business plan must intend to grow the business (buy and hold business plans with no intent to grow the business are not permitted), (5) the corporation must maintain, at a minimum, the current wage levels and employment terms of existing staff, (6)  the corporation must preserve all existing permanent full-time jobs, and (7) the corporation must also satisfy the job creation requirement (see below).
• The corporation must create 5 full-time, permanent positions for Canadian citizens or permanent residents for each key staff member nominated.  Positions must be paid or at above the prevailing wage for that position.  A full time position means a position that consists of at least 1,560 hours of paid employment in a 12 month period.  However, the following are not considered permanent, full-time employees even if the employee works 1,560 hours in a 12 month period:  (1) seasonal or part-time employees, (2) subcontactors or agency workers, or (3) employees who do not work on the corporation’s premises (i.e. employees who work from home or who telecommute).
• There must be a clear structural linkage between the parent corporation and the proposed new business in Ontario (i.e. subsidiary, branch, or affiliate of the parent).
• The business must intend to make a profit through the sale of goods and/or services.
• Primary income sources must be from active (earned) income, not passive (unearned) income.
• The proposed business must comply with Canadian legal requirements and all regulatory industry and licencing requirements, which govern its legitimate operation.
• The proposed business must comply with all provincial labour laws, including employment standards, health and safety, and labour relations legislation.
• The proposed business must be considered a permanent business in Ontario.
• The corporation must submit a business plan with its application, prepared in accordance with the OINP’s requirements.

Please note that additional criteria and due diligence requirements apply where the proposed business is a land development or leasehold company.  However, this is outside the scope of the present article.

Ineligible Business Types

As the OINP will not process applications for proposed businesses that are likely to have little or no long term economic benefit.  Therefore, the proposed Ontario business may not be:

• Existing Franchises in Ontario (new foreign franchises expanding into Ontario are permitted) [Greater Toronto Area ("GTA") only];
• Gas Stations [GTA only];
• Tire Recycling;
• Scrap Metal Recycling;
• Pawnbrokers;
• Bed and Breakfasts [GTA only];
• Holding Companies;
• Laundromats;
• Automated Car Wash Operations;
• Payday loan and related businesses; and
• Businesses which have been previously owned / operated by current or former OINP business stream nominees

Key Staff Requirements

Applicant corporations may request up to 5 key staff members who will establish the business in Ontario and who are seeking a provincial nomination to permanently relocate to the province.  All key staff must meet Stage 1 requirements at the time of the application in order for the complete application to be approved.  Key staff must also meet additional nomination requirements once the business has met commitments outlines in the Performance Agreement (Stage 2) in order to be considered eligible for provincial nomination.

Stage 1 Key Staff Requirements

• Key staff must be essential to the establishment and operation of the proposed business.
• Key staff must be in a senior, executive, managerial, or specialized knowledge capacity (National Occupational Classification (“NOC”) level 0 or A) in the applicant corporation’s existing business.
• Only one key staff in NOC A can be proposed.
• The key staff must have at least 36 months of experience in the last 60 months, in same position that they will hold in the proposed Ontario business, with the applicant corporation.  They must have been continuously working for the applicant corporation in that position during the 12 months prior to the submission of the application.
• Key staff must not have an immediate family relationship with any member of the corporation’s Executive Board, Board of Directors, or a shareholder owing more than 10% equity in the applicant corporation. Immediate family members include: spouse, mother, father, sister, brother, grandparents, and the spouse’s immediate family members.
• Key staff must not hold any equity in the applicant corporation, except where it was obtained as part of the remuneration in accordance with his or her employment contract, in which case the equity must be less than 10% of the applicant corporation’s business.
• The position to be assumed in the proposed Ontario business must be a permanent, full-time position and must meet prevailing wage levels.

Stage 2 Key Staff Requirements

After the corporation has met its Performance Agreement commitments, key staff will be required to meet the following additional requirements in order to be nominated for permanent residence:

• Key staff must be in a position for which they were approved by the OINP and carrying out the approved job duties.
• Key staff must physically reside in Ontario for at least 75% of each year (9 months out of the year) that they are in Ontario under a temporary work permit.
• Key staff must have a language proficiency equivalent to the Canadian Language Benchmark (“CLB”) Level 5.

The Entrepreneur Stream

Overview

The Entrepreneur Stream is designed to support individuals from countries who are looking to implement a new business idea or buy an existing business in the Province of Ontario.  However, unlike the Corporate Stream, individual entrepreneurs may not immediately submit an application under the Entrepreneur Stream. This is because the Entrepreneur Stream is subject to an Expression of Interest (“EOI”) System, which is similar to the Government of Canada’s Express Entry System.

Prospective entrepreneurs may submit an EOI to indicate their interest in being considered by the OINP they but will not be permitted to apply under the Entrepreneur Stream unless they receive an Invitation to Apply (“ITA”).  If the entrepreneur receives an ITA from the OINP, he or she can submit a complete application under the Entrepreneur Stream.

Under the EOI System, applicants are selected based on the number of ranking points that they receive, rather than when they file their application.  As a result, an applicant who submits an EOI after another applicant but who has a higher number of ranking points will receive an ITA before that other applicant.

Once an entrepreneur has received an ITA, has filed a complete application, and has been approved, he or she then signs a Performance Agreement with the OINP.  This Performance Agreement outlines the commitments that the entrepreneur has made to invest and create jobs in Ontario.  The OINP will then issue a temporary work permit support letter that the entrepreneur can use to apply for a temporary work permit, which will allow him or her to establish the proposed business in Ontario.

The entrepreneur must arrive in Ontario using their temporary work permit within 12 months from the date of their letter of confirmation.  Upon arrival, the entrepreneur will have up to 20 months from that date to implement the business plan and satisfy all of the commitments contained in the Performance Agreement.

The required permanent full-time jobs must be filled within 10 months from the date of the entrepreneur’s arrival in Canada they must remain filled for at least 10 months prior to the submission of the Final Report.  The entrepreneur will be responsible for filing a Final Report to the OINP between 18 and 20 months after he or she has arrived in Canada.  This Final Report must be submitted to the OINP in order to initiate the nomination process.

If the entrepreneur is successful in meeting the commitments described in the Performance Agreement, he or she will receive a Confirmation of Nomination, which may be used to apply for permanent residence.

Eligibility Requirements

Minimum Eligibility Requirements

There are 5 factors that have minimum eligibility requirements for the entrepreneur and, if applicable, his or her business partner:

• Experience – Applicants must have at least 36 months of full-time business experience in the last 60 months, with the last 12 months in either active general business administration or in an area of expertise related to the proposed business opportunity.  This experience must be as a business owner or senior manager.
• Net Worth - If the proposed business will be located in the GTA, the entrepreneur must have a minimum net worth of $1,500,000.00.  If the proposed business will be located outside the GTA, the entrepreneur must have a minimum net worth of $800,000.00.  If the proposed business will be in the Information and Communications Technology/Digital Communications Sector (regardless of where the  business is established in Ontario), the entrepreneur must have a net worth of $800,000.00.
• Personal Investment Funds – If the proposed business will be located in the GTA, the entrepreneur must make a minimum personal investment of $1,000,000.00 and have a minimum equity ownership of $33.3%.  If the proposed business will be located outside the GTA, the entrepreneur must make a minimum personal investment of $500,000.00 and have a minimum equity ownership of 33.3%.  If the proposed business will be in the Information and Communications Technology/Digital Communications Sector (regardless of where the  business is established in Ontario), the entrepreneur must make a minimum personal investment of $500,000.00 and have a minimum equity ownership of 33.3%.
• Job Creation – The entrepreneur must commit to creating at least 2 permanent full-time jobs for Canadian citizens or permanent residents.  Positions must be paid or at above the prevailing wage for that position.  A full-time position means a position that consists of at least 1,560 hours of paid employment in a 12 month period.  However, the following are not considered permanent, full-time employees even if the employee works 1,560 hours in a 12 month period:  (1) seasonal or part-time employees, (2) subcontractors or agency workers, or (3) employees who do not work on the corporation’s premises (i.e. employees who work from home or who telecommute).
• Exploratory Visit – If the entrepreneur purchases an existing business, he or she must make at least one business-related visit to Ontario with the 12 months preceding the submission of the application.

The entrepreneur must meet the minimum requirements for all of the above factors in order to be eligible to apply under the Entrepreneur Stream.  If the entrepreneur is applying with a business partner who is also seeking nomination, the business partner must also meet all of the minimum requirements for each factor described above.  For example, if the proposed business is located in the GTA, both the entrepreneur and the business partner must each investment $1,000,000.00 (a total of $2,000,000.00) and each create at least 2 permanent full time jobs (a total of 4).

General Requirements for the Proposed Business

In addition to the above minimum requirements, the proposed business must meet the following general requirements:

• The business must intend to make a profit through the sale of goods and/or services.
• Primary income sources must be from active (earned) income, not passive (unearned) income.
• The proposed business must comply with Canadian legal requirements and all regulatory industry and licencing requirements, which govern its legitimate operation.
• The proposed business must comply with all Ontario labour laws, including employment standards, health and safety, and labour relations legislation.
• The proposed business must be considered a permanent business in Ontario.
• Any third party investors must be a Schedule I or Schedule II bank or an institutional investor.

If the entrepreneur is purchasing an existing Ontario business, the following additional criteria apply:

• The Ontario business must have been in continuous operation by the same owner for the preceding 60 months
• The purchase must completely transfer ownership of the Ontario business from the previous owner(s) to the entrepreneur, the business partner, and/or third party investor(s).
• The Ontario business must not have been previously owned/operated by a current or former OINP business stream nominee.
• The entrepreneur must preserve all existing permanent full-time jobs and create 2 additional permanent full-time jobs.
• The entrepreneur must maintain, at a minimum, the current wage levels and employment terms of existing staff.
• The proposed business plan must demonstrate that the entrepreneur intends to grow the business.  Buy and hold business plans with no intent to grow the business are not permitted in the Entrepreneur Stream.

As with the Corporate Stream, the OINP will not process applications for proposed businesses that are likely to have little or no long term economic benefit.  Therefore, the proposed Ontario business may not be:

• Existing Franchises in Ontario (new foreign franchises expanding into Ontario are permitted) [Greater Toronto Area ("GTA") only];
• Gas Stations [GTA only];
• Tire Recycling;
• Scrap Metal Recycling;
• Pawnbrokers;
• Bed and Breakfasts [GTA only];
• Holding Companies;
• Laundromats;
• Automated Car Wash Operations;
• Payday loan and related businesses; and
• Businesses which have been previously owned / operated by current or former OINP business stream nominees

Nomination Requirements

The entrepreneur will be required to satisfy additional nomination requirements in order to be nominated by the OINP, once he or she has established the Ontario business and met the commitments described in the Performance Agreement.  The entrepreneur does not need to satisfy these criteria at the time of the initial application filing but must do so when applying for nomination after the business has been established.  The nomination criteria are as follows:

• The entrepreneur must have a language proficiency equal to CLB Level 5 or equivalent.
• The entrepreneur must be physically residing in Ontario for at least 75% of each year (9 months out of the year) that they are in Ontario establishing his or her business under a temporary work permit.

EOI Scoring Factors and Breakdown of Ranking Points

When a proposed entrepreneur submits an EOI, he or she will receive a total ranking score.  These ranking points may be earned in three categories: (1) experience, (2) investment, and (3) human capital; the maximum score available is 160 points.  These three categories are briefly described below.

Experience Factors

The maximum number of points awarded for experience factors is 50 points.

Applicants may claim points based on past business ownership or senior management experience during the last 60 months.  If an applicant has both business ownership experience and senior management experience during the past 60 months, he or she must use only 1 of these 2 types of experiences in the EOI.

The maximum number of points awarded for experience as a business owner is 25 points.  A business owner must have owned at least 33.3% of the business during the period claimed. A business owner must also have played an active role, meaning that he or she was personally involved in the day-to-day operations of the business and had direct involvement in decision making.

The maximum number of points awarded for experience as a senior manager is 20 points.  A senior manager’s role must have included senior decision-making responsibilities in areas such as operations, sales, finance, marketing, distribution, human resources, research and development, etc.

Entrepreneurs may also claim additional points based on past specific experiences in a high growth business and/or export trade business:

• High Growth Business - Experience in a business that experienced at least a 20% increase in revenue in 2 consecutive years.  Applicants will receive 15 points for this specific experience.
• Export Trade Business – Experience in a business exporting at least 20% of goods/services to a foreign market.  Applicants will receive 25 points for this specific experience.

Investment Factors

The maximum number of points awarded for investment factors is 90 points.  Applicants may claim points for net worth, investment amount, job creation, exploratory visits, key sectors, and NOC classification of the jobs that the proposed Ontario business will create:

• Net Worth – Applicants may claim points based on total net worth, up to a maximum of 15 points.  Personal net worth must be legally obtained and verifiable.
• Investment Amount – Applicants may claim points based on the total personal investment amount that will be made into the proposed Ontario business, up to a maximum of: (1) 20 points for a proposed Ontario business located within the GTA, or (2) 25 points for a proposed Ontario business located outside the GTA or in the Information and Communications Technology/Digital Communications Sector.  However, the following are not considered eligible investments: (1) cash, cash equivalents, and working capital (i.e. uncommitted funds) held by the Ontario business, and (2) wage payments made to the entrepreneur and his or her family members.
• Job Creation – Applicants may claim points based on the total number of permanent full time jobs that the proposed Ontario business will create for Canadian citizens or permanent residents, up to a maximum of 20 points.
• Exploratory Visits – Applicants may claim points based on any business-related visits to Ontario within the 1 year period preceding the submission of the EOI, up to a maximum of 5 points.  However, there is no mandatory requirement for any exploratory visits unless the entrepreneur is purchasing an existing business.
• Key Sectors Targeted – Applicants may claim points depending on whether the proposed Ontario business is in a key sector, as determined by the Government of Ontario, up to a maximum of 10 points.  However, there is no mandatory requirement that the proposed Ontario business be on one of these key sectors.  Key sectors currently defined as economic priorities for Ontario are: (1) aerospace, (2) automotive. (3) financial services, (4) food and beverage manufacturing, (5) information and communications technology, (6) life sciences, (7) mining, (8) tourism investment, and (9) water technology.
• NOC 0, A, or B Jobs – Applicants may claim points based on the NOC 0, A, or B jobs that the proposed Ontario business will create for Canadian citizens or permanent residents, up to a maximum of 15 points.  However, there is no mandatory requirement that the 2 newly created jobs actually be in NOC 0, A, or B.

Human Capital Factors

The maximum number of points that may be awarded for human capital factors is 20 points.  Applicants may claim points based on their level of education and official language ability:

• Level of Education – Applicants may claim points based on their highest level of post-secondary education completed, up to a maximum of 5 points.  However, there is no minimum education requirement to be considered for the Entrepreneur Stream.  Post-secondary education refers to full-time studies from a licenced post-secondary institution that leads to a credential that is the equivalent to a Canadian degree, diploma, or certificate.  If an entrepreneur receives an ITA, and claiming to have completed 6 months or more of post-secondary education, they will be required to provide evidence of this education when they submit their complete application, including their Educational Credential Assessment results.
• Official Language Ability -Applicants may claim points based on their proficiency in English or French, up to a maximum of 15 points.   Although there is no minimum mandatory language requirement to be considered for the Entrepreneur Stream at the EOI stage, language proficiency equal to CLB Level 5 will be required at the time that they apply to be nominated by the OINP.

Introduction

On December 16, 2014, Citizenship and Immigration Minister Chris Alexander (the “Minister”) announced that Canada will unveil its Immigrant Investor Venture Capital Pilot Program (the “IIVC”) at the end of January 2015.  The IIVC is designed to attract experienced business immigrants who will actively invest in the Canadian economy and will be available to approximately 50 investors and their families (presumably each year).  Although full details of the IIVC have not been announced yet, what is known so far is summarized below.

Eligibility

The eligibility criteria under the IIVC are designed to attract investors with skills and abilities that will help them integrate into the Canadian economy and society.  These criteria will include the following:

• Proven language proficiency in English or French;
• Either: (1) a Canadian post-secondary degree, diploma or certificate; or (2) a foreign educational credential plus an Canadian educational equivalency assessment from a designated organization;
• A legally obtained net worth of at least $10 million CAD derived from lawful, profit-making business activities, which will be verified by a designated due diligence service provider (only applicants selected for processing under the IIVC will be required to obtain a due diligence report); and
• A non-guaranteed investment in the amount of $2 million CAD, paid into the IIVC fund for a period of 15 years (the funds will be invested in Canadian-based start-ups having high growth potential).

Overview of the Application Process

Citizenship and Immigration Canada (“CIC”) will accept up to a maximum of 500 applications within a specified period.  Applications will be selected randomly for processing until approximately 50 approved applications are finalized.  Applications that are not selected will be returned once the cap has been reached.

CIC claims that selected applicants should receive a decision on their applications within approximately six months of submitting all required documentation.  A similar time frame has also been suggested for applicants who are selected under the new Express Entry system.  However, it remains to be seen whether CIC will actually meet this processing standard once it begins processing IIVC and Express Entry applications.

Analysis of the IIVC

The opening of a new program for immigrant investors is good news, especially since the Canadian Government stopped accepting applications under the previous Immigrant Investor Program on July 1, 2012 (it later terminated the entire program).  However, the IIVC is a pilot program (such programs have a maximum duration of 5 years) and it will be limited to 50 applicants (presumably each year).

In addition, the IIVC must be considered in light of investor programs offered by other countries.  Unless a particular investor is predisposed to choosing Canada, he or she is unlikely to apply under the IIVC unless its eligibility criteria are more generous than those applied by the investor programs of those other countries.

For example, the EB-5 Immigrant Investor Program (the “EB-5 Program”) currently offered by the United States requires only an investment of only $1 million USD in a qualifying business, with no specific net worth requirement.  In addition, applicants who choose to invest in an approved EB-5 Regional Center can invest as little as $500,000 USD (although they will also need to fall within the definition of “accredited investor” in order to comply with U.S. securities laws.

The EB-5 Program does impose additional restrictions that will probably not apply under the IIVC.  For example:

• In most cases the EB-5 Program requires the direct creation of 10 full-time jobs for U.S. citizens, permanent residents, or other lawfully permitted immigrants.  However, in Targeted Employment Areas (most EB-5 Regional Centers are established in such areas), it is possible to demonstrate the indirect creation of these jobs resulting from the investment itself.
• EB-5 Program applicants are given conditional permanent resident status for 2 years and must apply to remove their condition after that date.  However, once the condition has been removed, EB-5 immigrants are permitted to sell their interest in the EB-5 investment (the IIVC will impose a 15-year investment obligation).

Conclusion

Although the IIVC certainly has potential, it remains to be seen whether the program will be popular with foreign investors, in light of the investor options currently offered by other countries.

Introduction

On December 1, 2014, Citizenship and Immigration Canada (“CIC”) published Ministerial Instructions relating to its proposed Express Entry System (“Express Entry”).  Express Entry will come into effect on January 1, 2015, at 12:00 noon EST, and will apply to the following categories:

1. The Federal Skilled Worker (“FSW”) Class;
2. The Canadian Experience Class (“CEC”);
3. The Federal Skilled Trades (“FST”) Class; and
4. Members of the Provincial Nominee Class who fall within the Express Entry Stream of a Provincial Nominee Program (“PNP”).

In summary, Express Entry will apply to all FSW, CEC, and FST applications filed on or after January 1, 2015.  However, it will not apply to any existing PNP streams.  Instead, each province will have the option of establishing a new Express Entry Stream under its existing PNP.

Overview

Potential candidates will be permitted to submit an online Express Entry profile (i.e. an “Expression of Interest”).  At this time, they will be asked to provide information about their: (a) skills, (b) work experience, (c) language ability, (d) education, and (e) other relevant factors.  However, if a candidate is unable to submit an Expression of Interest online, due to a physical or mental disability, it may be submitted by another means made available by CIC for that purpose.

Candidates who meet the applicable eligibility requirements of at least one of the classes described above (i.e. FSW, CEC, FST, or PNP Express Entry stream) will be accepted into a special pool of candidates (the “Express Entry Pool”).  However, acceptance into the Express Entry Pool does not guarantee that a particular candidate will be issued an Invitation to Apply (“ITA”) for permanent residence.  Instead, candidates in the Express Entry Pool will be ranked against each other using a point-based system called the Comprehensive Ranking System; these points will be awarded using the information contained in each candidate’s Expression of Interest.  The candidates with the highest ranking will be periodically selected from the Express Entry Pool.

Candidates may not receive an ITA unless they satisfy the following requirements:

1. They must satisfy the eligibility requirements of at least one of the classes described above (i.e. FSW, CEC, FST, or PNP Express Entry stream).
2. They must have a positive Labour Market Impact Assessment (“LMIA”), if they are working in Canada under a work permit issued pursuant to: (1) an international agreement between Canada and one or more foreign countries (such as a work permit based on the NAFTA or similar free trade agreements), or (2) a federal-provincial agreement (such as a work permit based on a PNP Nomination Certificate).  This language was particularly troubling because appeared to preclude the issuance of an ITA to certain foreign workers who would not otherwise require an LMIA, unless their Canadian employer obtained one on their behalf.  However, CIC later confirmed that it only intended to clarify that a temporary foreign worker in Canada under an LMIA-exempt work permit would not earn any Express Entry ranking points for arranged employment.
3. Within 30 days from the date that they submit their Expression of Interest, they must register with the Job Bank maintained by Employment and Social Development Canada (“ESDC”), if they do not have a qualifying offer of arranged employment or are not named in a Nomination Certificate issued under a PNP Express Entry stream at the end of that period.

If someone receives an ITA, they will have sixty days to submit an online application for permanent residence.  CIC expects to process the majority of complete applications (meaning those with all the necessary supporting documents) in six months or less.

Candidates accepted into the Express Entry Pool may remain in the pool for up to twelve months, starting on the date that their Expression of Interest was submitted.  If they do not receive an ITA during this period, they will be removed from the pool.  However, they may submit a new Expression of Interest; if they still satisfy the criteria, they can re-enter the Express Entry Pool.

If a candidate declines the invitation within the sixty-day period, the remaining portion of the original one-year period of their inclusion in the Express Entry Pool will continue.  However, if the candidate does not decline the invitation within the sixty-day period and does not make an application for permanent residence within that period, the Expression of Interest will end, regardless of the portion of the one-year period that remains.

Mandatory Submission of Educational Credential Assessments and Language Proficiency Results

Candidates will be required to provide the results of an assessment of their proficiency in English or French (issued by a designated language testing organization or institution) at the time that they submit their Expression of Interest.  Language proficiency assessments are valid for a period of two years from the date that they are issued.

In addition, candidates who are relying on foreign education will be required to provide the results of a valid educational credential equivalency assessment (issued by a designated credential evaluation organization or institution) at the time that they submit their Expression of Interest.  Educational credential assessments are valid for a period of five years from the date that they are issued.

The Comprehensive Ranking System

The ranking of candidates who are included in the Express Entry Pool will be based on the total number of points assigned to each candidate, using the information provided in their Expression of Interest and in accordance with the Comprehensive Ranking System, which considers the following factors:

1. Core human capital factors;
2. Accompanying spouse or common-law partner factors;
3. Skill transferability factors; and
4. Factors relating to a provincial nomination or a qualifying offer of arranged employment.

Maximum Points Allocations

The total number of points that may be assigned under the Comprehensive Ranking System is 1200 points.  These points will be allocated as follows:

1. Where a candidate has no accompanying spouse or common-law partner: (i) a maximum of 500 points for core human capital factors, (ii) a maximum of 100 points for skill transferrability factors, and (iii) a maximum of 600 points for either a provincial nomination or a qualifying offer of arranged employment; and
2. Where a candidate has an accompanying spouse or common-law partner: (i) a maximum of 460 points for the core human capital factors, (ii) a maximum of 40 points for accompanying spouse or common-law partner factors, (iii) a maximum of 100 points for skill transferability factors, and (iv) a maximum of 600 points for either a provincial nomination or a qualifying offer of arranged employment.

Core Human Capital Factors

Age

For a candidate who has no accompanying spouse or common-law partner, points for age are assigned as follows:

1. 0 points, if the candidate is 17 years of age or less;
2. 99 points, if the candidate is 18 years of age;
3. 105 points, if the candidate is 19 years of age;
4. 110 points, if the candidate is 20 to 29 years of age;
5. 105 points, if the candidate is 30 years of age;
6. 99 points, if the candidate is 31 years of age;
7. 94 points, if the candidate is 32 years of age;
8. 88 points, if the candidate is 33 years of age;
9. 83 points, if the candidate is 34 years of age;
10. 77 points, if the candidate is 35 years of age;
11. 72 points, if the candidate is 36 years of age;
12. 66 points, if the candidate is 37 years of age;
13. 61 points, if the candidate is 38 years of age;
14. 55 points, if the candidate is 39 years of age;
15. 50 points, if the candidate is 40 years of age;
16. 39 points, if the candidate is 41 years of age;
17. 28 points, if the candidate is 42 years of age;
18. 17 points, if the candidate is 43 years of age;
19. 6 points, if the candidate is 44 years of age; and
20. 0 points, if the candidate is 45 years of age or more.

For a candidate who has an accompanying spouse or common-law partner, points for age are assigned as follows:

1. 0 points, if the candidate is 17 years of age or less;
2. 90 points, if the candidate is 18 years of age;
3. 95 points, if the candidate is 19 years of age;
4. 100 points, if the candidate is 20 to 29 years of age;
5. 95 points, if the candidate is 30 years of age;
6. 90 points, if the candidate is 31 years of age;
7. 85 points, if the candidate is 32 years of age;
8. 80 points, if the candidate is 33 years of age;
9. 75 points, if the candidate is 34 years of age;
10. 70 points, if the candidate is 35 years of age;
11. 65 points, if the candidate is 36 years of age;
12. 60 points, if the candidate is 37 years of age;
13. 55 points, if the candidate is 38 years of age;
14. 50 points, if the candidate is 39 years of age;
15. 45 points, if the candidate is 40 years of age;
16. 35 points, if the candidate is 41 years of age;
17. 25 points, if the candidate is 42 years of age;
18. 15 points, if the candidate is 43 years of age;
19. 5 points, if the candidate is 44 years of age; and
20. 0 points, if the candidate is 45 years of age or more.

Level of Education

For a candidate who has no accompanying spouse or common-law partner, points for level of education are assigned as follows:

1. 0 points, if the candidate has less than a secondary school credential,
2. 30 points, if the candidate has a secondary school credential,
3. 90 points, if the candidate has a one-year post-secondary program credential,
4. 98 points, if the candidate has a two-year post-secondary program credential,
5. 120 points, if the candidate has a post-secondary program credential of three years or more,
6. 128 points, if the candidate has two or more post-secondary program credentials and at least one of them was issued at the completion of a post-secondary program of three years or more,
7. 135 points, if the candidate has a university-level credential at the master’s level or at the level of an entry-to-practice professional degree for an occupation listed in the National Occupational Classification (“NOC”) matrix at Skill level A for which licensing by a provincial regulatory body is required, and
8. 150 points, if the candidate has a university-level credential at the doctoral level.

For a candidate who has an accompanying spouse or common-law partner, points for level of education are assigned as follows:

1. 0 points, if the candidate has less than a secondary school credential;
2. 28 points, if the candidate has a secondary school credential;
3. 84 points, if the candidate has a one-year post-secondary program credential;
4. 91 points, if the candidate has a two-year post-secondary program credential;
5. 112 points, if the candidate has a post-secondary program credential of three years or more;
6. 119 points, if the candidate has two or more post-secondary program credentials and at least one of them was issued at the completion of a post-secondary program of three years or more;
7. 126 points, if the candidate has a university-level credential at the master’s level or an entry-to-practice professional degree for an occupation listed in the NOC matrix at Skill level A for which licensing by a provincial regulatory body is required; and
8. 140 points, if the candidate has a university-level credential at the doctoral level.

Education points will be assigned based on the highest level of education obtained.  However, in order for a candidate to be assigned points for education, the following must apply:

1. Their educational credentials must be Canadian educational credentials; or
2. They must have a valid educational credential equivalency assessment issued by a designated credential evaluation organization or institution.

Official Language Proficiency

Overview

Points will be assigned to candidates for proficiency in their first official language and for proficiency in their second official language.  As a result, they must indicate which of Canada’s two official languages (English or French) is their primary language and which is their secondary language.  In order to receive points for language, candidates must also have their proficiency assessed by a designated language testing organization or institution.

First Official Language

Points will be assigned for each language skill area (reading, writing, listening, and speaking) of the candidate’s first official language.  The calculation of points will be based on their benchmark level, as assessed under the Canadian Language Benchmarks or the Niveaux de compétence linguistique canadiens.

For a candidate who has no accompanying spouse or common-law partner, points will be assigned for each language skill area as follows:

1. 0 points for being assessed at less than level 4;
2. 6 points for being assessed at level 4 or 5;
3. 9 points for being assessed at level 6;
4. 17 points for being assessed at level 7;
5. 23 points for being assessed at level 8;
6. 31 points for being assessed at level 9; and
7. 34 points for being assessed at level 10 or higher.

The maximum number of points that may be assigned for all four language skill areas, taken together, in the candidate’s first official language is 136 points.

For a candidate who has an accompanying spouse or common-law partner, points will be assigned for each language skill area as follows:

1. 0 points for being assessed at less than level 4;
2. 6 points for being assessed at level 4 or 5;
3. 8 points for being assessed at level 6;
4. 16 points for being assessed at level 7;
5. 22 points for being assessed at level 8;
6. 29 points for being assessed at level 9; and
7. 32 points for being assessed at level 10 or higher.

The maximum number of points that may be assigned for all four language skill areas, taken together, in the candidate’s first official language is 128 points.

Second Official Language

Points will also be assigned for each language skill area (reading, writing, listening, and speaking) of the candidate’s second official language.  The calculation of points will again be based on their benchmark level, as assessed under the Canadian Language Benchmarks or the Niveaux de compétence linguistique canadiens.

Points will be assigned for each language skill area as follows:

1. 0 points for being assessed at level 4 or less;
2. 1 point for being assessed at level 5 or 6;
3. 3 points for being assessed at level 7 or 8; and
4. 6 points for being assessed at level 9 or higher.

For a candidate who has no accompanying spouse or common-law partner, the maximum number of points that may be assigned for all of the language skill areas, taken together, in the second official language is 24 points.  For a candidate who has an accompanying spouse or common-law partner, the maximum number of points that may be assigned for all of the language skill areas, taken together, in the second official language is 22 points.

Canadian Work Experience

Points will be assigned to candidates for Canadian work experience, which is defined as work experience that:

1. Is acquired by a candidate in Canada in one or more occupations listed in Skill Type 0 Management Occupations or Skill Level A or B of the National Occupational Classification matrix;
2. Consists of continuous full-time work experience or the full-time equivalent for part-time work experience; and
3. Is acquired within the 10-year period preceding the day on which points are assigned to the candidate.

Full-time employment means employment of at least 30 hours per week.  A period of work experience that exceeds full-time work in one occupation, or simultaneous periods of work experience in more than one full-time occupation, will be evaluated as a single period of full-time work experience in a single occupation.

Any period of employment during which the candidate was engaged in full-time study, engaged in self-employment, or engaged in unauthorized work may not be counted when calculating the period of work experience.  The candidate must also have had temporary resident status during their period of work experience and any period of full-time study or training.

The candidate must specify in their Expression of Interest the four-digit code in the NOC that corresponds to each of the occupations they have engaged in while accumulating their Canadian work experience.  They must also have performed the actions described in the lead statement for the occupation as set out in the occupational descriptions of the NOC, as well as a substantial number of the main duties described therein (including all essential duties).

For a candidate who has no accompanying spouse or common-law partner, points will be assigned for Canadian work experience as follows:

1. 0 points, for no Canadian work experience or less than one year of such experience;
2. 40 points, for one year of Canadian work experience;
3. 53 points, for two years of Canadian work experience;
4. 64 points, for three years of Canadian work experience;
5. 72 points, for four years of Canadian work experience; and
6. 80 points, for five or more years of Canadian work experience.

For a candidate who has an accompanying spouse or common-law partner, points will be assigned for Canadian work experience as follows:

1. 0 points, for no Canadian work experience or less than one year of such experience;
2. 35 points, for one year of Canadian work experience;
3. 46 points, for two years of Canadian work experience;
4. 56 points for three years of Canadian work experience;
5. 63 points, for four years of Canadian work experience; and
6. 70 points, for five or more years of Canadian work experience.

Accompanying Spouse or Common-law Partner

Points will also be assigned based on accompanying spouse or common-law partner factors, which consist of the following: (a) level of education, (b) official language proficiency; and (c) Canadian work experience.  Each of these factors is described below.

Level of Education

In order for a candidate to be assigned points for education of the accompanying spouse or common-law partner (if applicable), the following must apply:

1. Their educational credentials must be Canadian educational credentials; or
2. They must have a valid educational credential equivalency assessment issued by a designated credential evaluation organization or institution.

Points will be assigned for the level of education of the accompanying spouse or common law partner as follows:

1. 0 points, if the accompanying spouse or common-law partner has less than a secondary school credential;
2. 2 points, if the accompanying spouse or common-law partner has a secondary school credential;
3. 6 points, if the accompanying spouse or common-law partner has a one-year post-secondary program credential;
4. 7 points, if the accompanying spouse or common-law partner has a two-year post-secondary program credential;
5. 8 points, if the accompanying spouse or common-law partner has a post-secondary program credential of three years or more;
6. 9 points, if the accompanying spouse or common-law partner has two or more post-secondary program credentials and at least one of them was issued at the completion of a post-secondary program of three years or more;
7. 10 points, if the accompanying spouse or common-law partner has a university-level credential at the master’s level or at the level of an entry-to-practice professional degree for an occupation listed in the NOC matrix at Skill level A for which licensing by a provincial regulatory body is required; and
8. 10 points, if the accompanying spouse or common-law partner has a university-level credential at the doctoral level.

Official Language Proficiency

Points will be assigned for each language skill area (reading, writing, listening, and speaking) for the first official language (but not the second official language) of the accompanying spouse or common law partner.  The candidate must specify which official language is to be considered the first official language of the spouse or common-law partner.

The language proficiency of the accompanying spouse or common-law partner must be assessed by a designed organization or institution.  Points assigned for proficiency in English will be based on the results assessed according to the benchmarks set out in Canadian Language Benchmarks and the points assigned for proficiency in the French language are to be based on the results assessed according to the benchmarks set out in the Niveaux de compétence linguistique canadiens.

Points will be assigned to the candidate for the proficiency of their accompanying spouse or common-law partner, in each language skill area (reading, writing, listening and speaking), as follows:

1. 0 points for being assessed at level 4 or less;
2. 1 point for being assessed at level 5 or 6;
3. 3 points for being assessed at level 7 or 8; and
4. 5 points for being assessed at level 9 or higher.

The maximum number of points that may be assigned for all of the language skill areas, taken together, is 20 points.

Canadian Work Experience

Points will be assigned to the candidate, based on the Canadian work experience of the accompanying spouse or common-law partner, as follows:

1. 0 points, if the accompanying spouse or common-law partner has no Canadian work experience or less than one year of such experience;
2. 5 points, if the accompanying spouse or common-law partner has one year of Canadian work experience;
3. 7 points, if the accompanying spouse or common-law partner has two years of Canadian work experience;
4. 8 points, if the accompanying spouse or common-law partner has three years of Canadian work experience;
5. 9 points, if the accompanying spouse or common-law partner has four years of Canadian work experience; and
6. 10 points, if the accompanying spouse or common-law partner has five or more years of Canadian work experience.

In order for the candidate to be assigned points for the Canadian work experience of their accompanying spouse or common-law partner, the Expression of Interest must include the four-digit code in the NOC that corresponds to each of the occupations that the accompanying spouse or common-law partner has engaged in while accumulating their Canadian work experience.  The spouse or common-law partner also must have performed the actions described in the lead statement for the occupation as set out in the occupational descriptions of the NOC, as well as a substantial number of the main duties (including all essential duties).

Skill Transferability Factors

Combination of Level of Education and Official Language Proficiency

The points are to be assigned for a combination of a candidate’s level of education and language proficiency (in their first official language) as follows:

1. 0 points, if the candidate has a secondary school credential, regardless of their proficiency in their first official language;
2. 13 points, if the candidate has a post-secondary program credential of one or more years and is assessed overall in their first official language at level 7 on all language skill areas, with one or more areas assessed at less than level 9;
3. 25 points, if the candidate has a post-secondary program credential of one or more years and is assessed in their first official language at level 9 or higher on all language skill areas;
4. 25 points, if the candidate has two or more post-secondary program credentials, one of which was issued on completion of a post-secondary program of three years or more, and is assessed overall in their first official language at level 7 on all language skill areas, with one or more areas assessed at less than level 9; and
5. 50 points, if the candidate has two or more post-secondary program credentials, one of which was issued on completion of a post-secondary program of three years or more, and is assessed in their first official language at level 9 or higher on all language skill areas.

Points are to be assigned based on the highest level of post-secondary education obtained.

Combination of Level of Education and Canadian Work Experience

Points are to be assigned for a combination of a candidate’s level of education and Canadian work experience as follows:

1. 0 points, if the candidate has a secondary school credential, regardless of their Canadian work experience;
2. 13 points, if the candidate has a post-secondary program credential of one year or more and one year of Canadian work experience;
3. 25 points, if the candidate has a post-secondary program credential of one year or more and two or more years of Canadian work experience;
4. 25 points, if the candidate has two or more post-secondary program credentials, one of which was issued on completion of a post-secondary program of three years or more, and one year of Canadian work experience; and
5. 50 points, if the candidate has two or more post-secondary program credentials, one of which was issued on completion of a post-secondary program of three years or more, and two or more years of Canadian work experience.

The above points are to be assigned based on the highest level of post-secondary education obtained.

The points assigned for: (a) education plus language, and (b) education plus Canadian work experience may be combined.  However, the total number of points earned for these two factors combined may not exceed 50 points.

Combination of Foreign Work Experience and Official Language Proficiency

Points are to be assigned for a combination of a candidate’s foreign work experience and language proficiency (in their first official language) as follows:

1. 0 points, if the candidate has no foreign work experience, regardless of their proficiency in their first official language;
2. 13 points, if the candidate has one or two years of foreign work experience and is assessed overall in their first official language at level 7 on all language skill areas, with one or more areas assessed at less than level 9;
3. 25 points, if the candidate has one or two years of foreign work experience and is assessed in their first official language at level 9 or higher on all language skill areas ;
4. 25 points, if the candidate has three years of foreign work experience and is assessed overall in their first official language at level 7 on all language skill areas, with one or more areas assessed at less than level 9; and
5. 50 points, if the candidate has three years of foreign work experience and is assessed in their first official language at level 9 or higher on all language skill areas.

In order for the candidate to be assigned points for foreign work experience, the Expression of Interest must include the four-digit code in the NOC that corresponds to each of the occupations that the candidate has engaged in while accumulating their foreign work experience.  The candidate must also have performed the actions described in the lead statement for the occupation as set out in the occupational descriptions of the NOC, as well as a substantial number of the main duties (including all essential duties).

Combination of Canadian Work Experience and Foreign Work Experience

Points are to be assigned for a combination of a candidate’s Canadian work experience and foreign work experience as follows:

1. 0 points, if the candidate has no foreign work experience, regardless of their Canadian work experience;
2. 13 points, if the candidate has one or two years of foreign work experience and one year of Canadian work experience;
3. 25 points, if the candidate has one or two years of foreign work experience and two or more years of Canadian work experience;
4. 25 points, if the candidate has three or more years of foreign work experience and one year of Canadian work experience; and
5. 50 points, if the candidate has three or more years of foreign work experience and two or more years of Canadian work experience.

The points assigned for: (a) foreign work experience plus language, and (b) Canadian work experience plus foreign work experience may be combined.  However, the total number of points earned for these two factors combined may not exceed 50 points.

Combination of Certificate of Qualification and Official Language Proficiency

Points are to be assigned for a combination of a candidate’s certificate of qualification (in a trade occupation issued by a province) and language proficiency (in their first official language) as follows:

1. 25 points, if the candidate has a certificate of qualification and is assessed overall in their first official language under the Canadian Language Benchmarks or the Niveaux de competence linguistique canadiens at benchmark level 5 or higher on all language skill areas, with one or more areas assessed under level 7; and
2. 50 points, if the candidate has a certificate of qualification and is assessed in their first official language under the Canadian Language Benchmarks or the Niveaux de compétence linguistique canadiens at benchmark level 7 or higher on all language skill areas.

Maximum Overall Points for Skill Transferability Factors

The maximum number of points that may be assigned for all of the skill transferability factors taken together is 100 points.

Provincial Nomination under an Express Entry Stream

A total of 600 points may be assigned to a candidate if he or she is named in a Nomination Certificate issued by a PNP and the nomination has been: (a) verified by the relevant province, and (b) accepted by the candidate.  However, these points will be lost if the Nomination Certificate is revoked by the province that issued it, or if the candidate declines the nomination.  In addition, a candidate who receives 600 points for provincial nomination may not receive points for arranged employment.

Offer of Arranged Employment

A total of 600 points may be assigned to a candidate if they have a qualifying offer of arranged employment.  However, these points will be lost if the offer is revoked or ceases to be a qualifying offer of arranged employment. In addition, a candidate who receives 600 points for arranged employment may not receive points for provincial nomination.

The term “qualifying offer of arranged employment” means:

1. An offer of employment in a Skill Type 0, Skill Level A, or Skill Level B occupation, made by an employer (other than a blacklisted employer or an embassy, high commission or consulate in Canada) for full-time work in Canada that is non-seasonal, permanent, and supported by an LMIA;
2. An offer of employment, in a Skill Level B occupation eligible under the FST, that is made by up to two employers (other than a blacklisted employer or an embassy, high commission or consulate in Canada), for continuous, full-time work in Canada for at least one year and that is supported by an LMIA;
3. An offer of employment in a Skill Type 0, Skill Level A, or Skill Level B occupation, made to a candidate who is working in Canada for the employer listed on their work permit (other than a blacklisted employer or an embassy, high commission or consulate in Canada) for full-time work in Canada that is non-seasonal and permanent, if the work permit was issued on the basis of an LMIA; or
4. An offer of employment in a Skill Level B occupation eligible under the FST, that is made to a candidate by one or both employers listed on their work permit (other than a blacklisted employer or an embassy, high commission or consulate in Canada) for continuous, full-time work in Canada for at least one year in a skilled trade occupation that is in the same minor group set out in the NOC as the occupation specified on their work permit, if the work permit was issued on the basis of an LMIA.

Conclusion

Express Entry will add additional complex layer of bureaucracy to the FSW, CEC, and FST classes.  It will also significantly increase the level of uncertainty for candidates seeking permanent residence under these classes, since it will no longer be possible to reliably predict how long it will take for an applicant to be selected from the Express Entry pool.  Many applicants could be included in the Express Entry Pool only to have their Expressions of Interest cancelled one year later if they are not selected.

The Government of Canada has suggested a processing time of six months or less for candidates who are issued an ITA, which is a significant improvement over current processing times.  However, these improved processing times may not be worth the increased uncertainty that will result from the implementation of Express Entry.

We will be watching to see how these cases are processed once Express Entry begins on January 1, 2015.