Alberta Rural Entrepreneur Stream – A Complete Business Immigrant Guide

Alberta has established itself firmly as a pro-business province and has recently updated its policies to create a supportive entrepreneurial environment. With four designated streams for foreign workers and four for entrepreneurs and business owners, the Alberta Advantage Immigration Program (AAIP) has strong options, no matter your professional profile.

There are numerous Provincial Nominee Programs in Canada, and finding the best-fit program is often the first significant hurdle entrepreneurs and business people face when exploring Canadian immigration. Despite offering a streamlined and business-focused route directly to Permanent Residence, Provincial Nominee Programs are often overlooked and underexplored in the business immigration landscape.

This guide will provide a comprehensive rundown of just one stream for entrepreneurs and business professionals with which our Firm is achieving success: the AAIP Rural Entrepreneur Stream.

What is the Rural Entrepreneur Stream (AAIP)?

The Rural Entrepreneur Stream is an economic immigration program specifically built for entrepreneurs who want to start their own business or buy an existing business in a rural or regional Alberta community. This Stream allows the province of Alberta to nominate accomplished and capable entrepreneurs for Permanent Residence from the Federal government.

AAIP Eligibility

The AAIP Rural Entrepreneur Stream is a good fit for entrepreneurs and business people dedicated to leveraging their skills and experience to create jobs for and fill the needs of Albertans.

An ideal candidate profile for this stream might look like:

• Work Experience: Has at least 3 years of experience as an active business owner or manager OR 4 years of experience as a senior manager within the past 10 years;
• Education: Holds a completed high school educational credential;
• Language: Has completed an English language test in the last two years and scored at least CLB Level 4 for each skill OR completed a French language test in the last two years and scored at least NCLC Level 4 for each skill;
• Financials: Has a minimum net worth of CAD$300,000 in their name or their spouse's or common-law partner's and is investing a minimum of CAD$100,000;
• Ownership: Holds at least 51% of their Canadian business (and any partners in the business are Canadian Citizens or Permanent Residents) OR 100% shares for business succession;
• Job Creation: Will create 1+ jobs for Canadian citizens or permanent residents (not relatives) for 6+ months;
• Community Support: Holds a Community Support Letter from a designated community.

Younger candidates who hold a higher investment budget, have a close relative in Alberta, or whose spouses are highly educated or have significant language skills in English or French may be eligible to score additional points.

If you are a foreign entrepreneur who already owns and operates a business in rural Alberta, you may be eligible to apply for PR under this stream! Confirm that you meet the program criteria. If so, once your business has been operating for at least one year and you hold a Community Support Letter, you can submit an Expression of Interest and follow the application process like any other candidate.

Who Cannot Apply to This Program?

Although this program is a good fit for entrepreneurs and businesspeople of many backgrounds and profiles, there are some restrictions. Your business must qualify for the program and must NOT be on the list of ineligible businesses. You are not eligible to apply for this Stream if you have an active nomination under another AAIP stream or if you have been issued a letter on a previous AAIP application which states you are not eligible to re-apply for a specific period (and that ineligibility period is still active). You also are not eligible to apply if:

• you have a removal order issued against you by IRCC or CBSA;
• you are a refugee claimant or are noted in a federal appeal or removal process; and/or
• you are a foreign national living or working in Canada and have NO valid temporary resident status.

Business Ideas for AAIP

It is crucial that your proposed business 1) meets all the program and stream criteria for eligible businesses and 2) demonstrates a significant economic benefit to Alberta. The province has provided additional information to help prospective business owners determine strong businesses. When you are selecting a business to propose under the program, make sure to keep in mind that the business and you as its owner must fulfill certain requirements and demonstrate completion of those requirements to the province.

The business must:

• be active and operational – it must earn its income by selling goods or providing a service; it cannot be in the initiation stages;
• be fully compliant with all applicable federal, provincial, and municipal requirements (legal, regulatory, licensing, etc.), including applicable trade certification requirements;
• if a franchise, then have evidence that it has support from the master franchisor and
• have physical business premises in Alberta.

The business owner must:

• own at least 51% of the business (if establishing a new business) or 100% (if purchasing an established business);
• reside full-time in Alberta, and
• be involved in the day-to-day management of their Albertan business.

Although there is a wealth of business options that can be viable choices under this program and stream, some businesses are not eligible and will cause your application to be canceled if proposed.

Ineligible businesses include:

• any business that contravenes the IRP Act and Regulations;
• any business that can be considered passive investment or income without active management, including but not limited to property rental and leasing, real estate development, insurance or business brokerage, laundromats, car washes, etc.;
• project-based or seasonal businesses;
• home-based businesses, such as bed-and-breakfasts;
• any business involved in providing sexually oriented services or products;
• businesses such as used goods traders, cheque-cashing services, and related businesses that do not provide any value-added economic element; and
• any business that would tarnish the reputation and credibility of the AAIP and Government of Alberta or bring them into disrepute by association.

If you are purchasing an existing business as part of a succession plan and the business is: owned or operated by a relative, has been owned or operated by an AAIP entrepreneur stream candidate in the past four years, or has changed ownership in the three years prior to your application, the business is ineligible for proposal.

How to Apply for AAIP?

There is a persistent narrative that PNP programs are not worthwhile for business immigration applicants because they are lengthy and complicated, which couldn't be farther from the truth. Each step of the process leads smoothly into the next, starting at the community level and ending at the federal. Applicants considering the Rural Entrepreneur Stream of the AAIP should follow the process below when applying to the program to help ensure a straightforward and hassle-free process:

Before You Begin

Before applying to any program or stream, review the criteria and guidelines carefully to ensure you understand its purpose, guidelines, and eligibility criteria. Most programs are subject to changes and updates without notice, so you should check back often. Meeting the minimum criteria is also NOT a guarantee that you will receive a nomination, and a nomination is not a guarantee that you will achieve business success or receive Permanent Residency. As with all immigration programs, the onus is on the applicant to make your application as fulsome, complete, and competitive as possible. PNP programs are fundamentally based on the notion that you will come to economically establish your business and yourself and/or family in a province and continue to live there as Permanent Residents. These are not programs for entrepreneurs who want to start a business in one location and move around later – if the province believes that is your intention, your application will be rejected.

Step 1: Research and Prepare

The first step in this process is to consider three key questions: where, what, and in what manner. Consider where you'd like to live and work in Alberta, what industries you are interested in working in, and how you'd like to enter the Canadian business market – by starting your own venture, buying a franchise, or purchasing an existing business. From there, you can conduct more detailed research into current market opportunities in the community, licensing and registration requirements, and steps involved in establishing a business in your proposed location. Once you have some insight, the first step in this stream is to conduct an Exploratory Visit to their chosen community to learn more about their needs. All candidates must complete this visit, which allows you to meet with community contacts (like economic development officers), study and understand the local business environment, and learn more about the qualities of a successful business in your chosen community. The purpose of the exploratory visit is to assist you in making an informed decision about the business you plan to operate and where you plan to operate it. TIP: This is also the step in the process where you may choose to reach out to our team – we can help confirm your eligibility for the program, provide support for your exploratory visit, assign you a Business Specialist to assist in market research and business plan preparation, and more.

• Exploratory Visit: All candidates must complete an exploratory visit to the community of their choice. The community and the candidate determine whether the exploratory visit will be in-person or completed using web-based video conferencing. Candidates completing an in-person exploratory visit need to meet visa requirements to be able to come to Alberta. The AAIP and the community will not provide you with a letter of support to obtain a visa for the exploratory visit, and it is the applicant's responsibility to put together a convincing and accurate visa application that will satisfy an IRCC officer. Be sure to keep detailed records of your trip, including any meetings, networking opportunities, new contacts, and more – this information will be critical in preparing your Exploratory Visit Report. This Report must include:
  • A description of the activity or meeting (in-person or video conference) and an explanation of how it relates to your business establishment/settlement;
  • Copies of business cards or additional communications you collected from relevant contact and business service providers you met during your in-person visit (if applicable);
  • Names and contact details of professional business service providers or settlement organizations you met with or spoke to; and
  • If you are planning to purchase an existing business, details of your visit to existing business location(s) and meetings with current owners or representatives, along with the business name, location, current owners, and contact details.
• Once you have completed your exploratory visit, complete the Rural Entrepreneur Stream Business Proposal Summary and submit it to your community contact person for review and confirmation. This Summary will provide information on your proposed business venture and is the first major application milestone in this process. If the community reviews your Summary and finds your proposed business will be of benefit to the community, they will endorse your Summary and issue a Community Support Letter. This two-pronged approval indicates to the province that your chosen community is aware and supportive of your proposed business – as soon as you have received this approval from your community, you're ready to apply to the province.

Step 2: Submit an Expression of Interest (EOI)

The next step is to submit an Expression of Interest (or EOI) using the AAIP Portal. Make sure that any information or documents you provide are fully accurate, true, and up-to-date. TIP: You can only have one AAIP application in process at any given time. If you apply for the Rural Entrepreneur stream when you have another pending application under the AAIP Program, it will be withdrawn automatically. If you plan to apply for this stream instead, be sure to withdraw your pending application first.

• First, prepare your EOI Package. It will include:
  • Business Plan/Business Proposal Summary;
  • Net Worth Worksheet;
  • Community Support Letter;
  • Use of Representative Form (if applicable); and
  • Spouse, Common-Law Partner and Dependents Authorization Form (if applicable).
• Once you have prepared your EOI materials, compile your package and submit it online using the AAIP. You must also pay the Expression of Interest fee (CAD$200). You may begin your application draft in the portal and save it to complete later – however, you only have 120 days from beginning a draft to complete it or it is purged from the system. As soon as your EOI is submitted and fee is paid, your application status will update to "Pending Review by the Alberta Advantage Immigration Program." If the status does not update, there may have been a technical error – be sure to follow up. If your EOI status is marked as "Not Eligible," your EOI has been cancelled and you will need to submit a new EOI (with its own associated fees).
• Upon submission, your EOI will be added to the pool of EOIs from other prospective candidates. Within 30 days from the date of submission, the AAIP will review and score your EOI. The highest-ranking candidates in the EOI pool will be invited to submit a Business Application Package. If your EOI has not been selected within 12 months of being added to the pool, your EOI will be cancelled and you will need to submit a new one.

TIP: Simply submitting an EOI does not mean you are being considered for nomination by the province. An EOI is the first step in receiving a nomination, but it is not the only milestone required. Receiving an invitation to submit a Business Application Package is the first necessary approval required to receive a provincial nomination and secure PR.

Step 3: Submit a Business Application Package

If your EOI is approved and selected and you receive an invitation to submit a Business Application Package, you must submit it within 90 days of the date of the invitation. You may note that there is no way to find the applicable forms online – the Business Application Form is available only to the province's chosen candidates and will be issued directly to you through your secure portal or email.

When you are invited to apply, a draft Business Application Package will be created in your portal account using the information provided in your EOI. Review and update this information in detail and then upload the applicable forms and supporting documents. You can find a detailed document checklist here.

If your application is not complete, information or documents are out of date or missing, or if there are discrepancies between the information on your portal account and the submitted Business Application, your application may be cancelled.

The Business Application Package MUST include a Business Plan Evaluation Report and a Qualified Service Provider Report, both of which must be prepared by specific service providers selected by the province and program. The list of selected service providers can be found here.

You can apply using the AAIP Portal. You will pay a CAD$3,5000 non-refundable application fee. Once the status of your Business Application on the MyApplications page of the portal is updated to "Submitted," your Application has been accepted for processing. You will also receive an email with your fee payment receipt, for your records.

TIP: Any email communications from the AAIP will ALWAYS come from a Government of Alberta account (@gov.ab.ca) and will copy your representative if you have one. If you receive an email about your application from any other address (e.g. @gmail, @hotmail, etc.), it is likely a scam – be wary and stay informed!

While your application processes, there is still plenty you can do to ensure your file has the strongest chance of success. Make sure to review your application regularly and keep your information up to date while your application is being processed. You should regularly check your business information, update and renew any status or business documents, ensure your personal and contact details are up -to-date and correct them if not, update the province if you add, change, or dismiss a representative, and more. It is critical that when there is a material change to your circumstances, personal or professional, that you update your application and the AAIP. Most updates can be made through your AAIP portal, or rarely you may need to reach out to their office. Details on how to update key information through the portal can be found here.

If the AAIP needs any more information from your side to assess your application, they will contact you by phone or email and will outline what they need from you and how to submit it (typically directly to the Officer via their official email).

Step 4: Business Application Assessment

As soon as you have submitted your Business Application Package, it will be added to the pool for assessment. An Officer will review the Application and assess it against the eligibility criteria, verify key details, and confirm your EOI points are still accurate as calculated. TIP: Being in the pool is not a guarantee that your Package will be assessed and is not a guarantee that if you do meet the minimum criteria you will receive a provincial nomination. If your Business Application Package is approved:

• If the AAIP finds that you have demonstrated that you meet all criteria and they want to support your application, they will approve your Business Application. Once they have done so, they will issue you a Business Performance Agreement via email for your review and signature.
• A Business Performance Agreement (or BPA) is a legal agreement between you and the province of Alberta outlining what you have committed to achieving in your business. It will include key details such as:
  • The industry sector you plan to operate in;
  • The length of the agreement;
  • A list of relevant information and commitments based on your Business Application package, including but not limited to:
    • job creation;
    • business succession;
    • business location;
    • business investment; and
    • more!
  • All requirements outlined in the BPA are based on the information you provide in your Business Plan, which is part of the reason why it is so critical to have all your details fully up-to-date and accurate. These requirements are also non-negotiable and no requests to amend the terms will be considered. In some rare cases, applicants who require more time and request an extension of terms of an approved and signed BPA may be granted it on a case-by-case basis.
  • Once you have reviewed the terms of the BPA, sign the document, scan it, and send it via email to the AAIP. You must send your completed BPA to the AAIP within 14 days of receiving it. You will then receive a package from the AAIP, including:
    • A copy of the fully signed and executed BPA;
    • A Business Application Approval Letter; and
    • A 205(a) Letter of Support.
  • The 205(a) Letter of Support will allow you to apply for a two-year work permit from IRCC.
  • If you are an entrepreneur who has an existing established Albertan business and is approved under the program, no BPA is needed. Candidates in this circumstance will receive a nomination certificate for PR outright and do not need to go through the Business Performance process.

If your Business Application Package is refused:

• You will receive a letter confirming that your Application has been refused and explaining the decision. If you have a representative, the decision letter will be copied to them. The next steps available to you will depend on your circumstances, business, and reasons for refusal. You should review this decision and your strategy in detail with your representative. If you submitted your initial application yourself, you may choose to reach out to our team at this point to discuss the options available to you.

Step 5: Establish Your Business in Alberta

Now that you have approval from the province to do so, it's time to do what you do best – establish, build, and grow your business. You must land in Alberta within 12 months of receiving your Business Application approval letter. To do so, most candidates will need a work permit from the IRCC to come to Canada and work on their business. Within three months of receiving your 205(a) Letter of Support from the province, you should submit a work permit application to the IRCC. Note that receiving a Letter of Support is not a guarantee that you will receive a Work Permit to work on your business – work permits are issued at a federal level and not a provincial one. You will need to convince an IRCC Officer that you are a strong candidate who has a genuine and viable business and that you are ready and willing to effectively develop it. Prepare the application package (along with any necessary forms and supporting documents) and submit it to the IRCC, paying any required fees. Once you have secured a work permit approval, you are ready to move to Alberta to work on your business! TIP: A Business Application Approval Letter is NOT a nomination letter, and you cannot use it to apply for PR. The letter acts as a recognition and confirmation that the AAIP approves your proposed business and expects that you will live and operate a business in Alberta. The letter can support your application for a Canadian Work Permit so that you can come and begin executing your Business Plan.

• As soon as the Business Application Approval Letter and Work Permit are in hand, candidates must work on developing their business. During this time, you must:
  • Live in a rural Alberta community;
  • Actively own and operate an eligible business in a rural Alberta community for at least 12 months;
  • Own at least 51% of shares in a new business or 100% of shares in business succession circumstances;
  • Demonstrate that your business operations are viable and successful after one year of operation – e.g. within 12 months you must be actually generating a product or providing services; and
  • Meet the conditions of your BPA.
• During this period of establishment, you must regularly provide the province with updates as to how the business is developing and whether you are on-track to meet your goals. Keep these key dates and obligations in mind as you work on your business:
  • Within 30 days from the date listed as "Date Issued" on your work permit, you must submit an Arrival Report to the AAIP;
  • At the end of each 6-month period from the date listed as "Date Issued" on your work permit, you must submit a Business Progress Report to the AAIP.
• Once you are successfully demonstrating that you are meeting the conditions of the BPA, you are ready to submit your Final Report for Nomination.

TIP: If you are not on track to meet the terms of your BPA or if you need additional time to do so, you may be able to extend the terms of your BPA. You can submit a request to make changes to the BPA to the AAIP via your portal. Note that your work permit will not automatically renew. If you need additional time in Canada to grow your business and your permit will expire, you will need to apply for a work permit extension or new permit. You will need a new Letter of Support (CAD$150) from the province to apply for a work permit under this program. All approvals are based on applicant's circumstances and are granted on a case-by-case basis.

Step 6: Final Report for Nomination

Once you have sufficiently established your Albertan business and meet the conditions outlined in your Business Performance Agreement, you are ready to apply to be nominated by the AAIP for Permanent Residence. To do so, prepare and submit your Final Report for Nomination to the province. TIP: This Final Report is a critical stage in the nomination process. Only the province and AAIP can determine if you fulfilled the conditions laid out in your BPA, so it is key that your application is fulsome, includes detailed supporting evidence, and is accurate and true.

• The AAIP will then review your Final Report and determine a) whether you have met the outlined conditions and b) whether they will issue you a nomination.
• If your Final Report is approved:
  • The AAIP will notify the IRCC of your nomination. They will issue you a nomination letter directly confirming your approval and explaining how to submit your application for Permanent Residence to the IRCC. At this time, you can prepare, finalize, and submit your application for Permanent Residence to the IRCC. As always, ensure your application is accurate and complete. If the IRCC needs any additional information or documents from you, they will contact you. Once they have reviewed and processed your application in detail, they will issue a decision on your application. If you are approved, you and any included dependent family members will receive Permanent Residence.
  • TIP: You must continue to meet the terms and conditions of your BPA throughout the review and processing of both your Final Report for Nomination and your Permanent Residence application. If you stop meeting the terms at any time, your nomination certificate may be declined or withdrawn and your application(s) may be cancelled.
• If your Final Report is declined:
  • The AAIP will issue you a decision letter confirming that the application has been declined and outlining the reasons for refusal. If you are using an authorized representative, your representative will be copied. The next steps available to you at this point will depend on your immigration strategy, professional profile, and reasons for refusal.

Step 7: After Nomination and Permanent Residence

When you receive your nomination certificate, several key deadlines are triggered. You must:

• Apply for Permanent Residence within 6 months of the date of nomination (in some cases you may be able to apply to extend your nomination, but approvals are on a case-by-case basis); and
• Submit a Business Progress Report to AAIP 6 months after the date of nomination.

You must also continue to keep your profile up-to-date and accurate and inform both the AAIP and IRCC of any material changes to your personal or professional circumstances. You must maintain your status and ability to live and work in Alberta while your Permanent Residence Application is processing. In some cases, you may need to extend your work permit to maintain your status – be sure to do so with plenty of time to spare (we recommend to submit at least 90 days prior to expiry). TIP: If, while your Permanent Residence is processing (and sometimes beyond), the AAIP determines that you no longer meet the conditions of your Business Performance Agreement or that you have provided false or misleading information, they can and will withdraw your nomination at any time. You must continue to meet the terms of your BPA throughout application processing. Applying for Permanent Residence:

• Applications for Permanent Residence are submitted directly to the IRCC. Prepare and submit your application, being sure to provide all relevant supporting documents (including your provincial nomination certificate).
• Ensure that your application is truthful and complete and pay all required fees. Your application will be added to the processing pool and an Officer will be assigned to review it. In addition to your personal and business information, they will conduct health, security, and criminal reviews. You may be asked to complete a medical exam. If the Officer needs more information from you to make a decision, they will request it from you via your secure portal. Once your application has been assessed, the Officer will make a decision. If it is positive, you and your included family members are now Canadian PRs and can focus on running your business and building up your life in Alberta!
• If for any reason it is refused, you will receive a letter detailing the decision. Any next steps taken will depend on your circumstances and reasons for refusal.

TIP: The IRCC is the sole decision maker on Permanent Residence applications. Even if you have a provincial nomination certificate or have been endorsed by AAIP, they do not have any control over whether you receive Canadian PR, just as IRCC cannot control who AAIP chooses to endorse and nominate. And there you have it – the AAIP Rural Entrepreneur Stream from start to finish. By following this simple guide, you can achieve application success and invest in Albertan excellence for years to come.

AAIP Processing Time

Under AAIP, processing times for entrepreneur streams vary widely. The program takes around two years from business idea research to Permanent Residence as it depends on the volume of applications received at each stage of the process and the time it takes pending applicants to reach the next milestone.

It takes around four months on average to assess both an Expression of Interest and a Business Application Package. There are approximately 1,826 unprocessed applications currently in the pool, although the monthly processing rate is regularly improving. Once an applicant has worked in Alberta for at least 12 months, fulfilled their BPA obligations, and secured their nomination certificate, they are ready to proceed to PR. At the Permanent Residence stage, the current processing time for Provincial Nominee applicants is around 6 months.

Our Approval Rate for AAIP

Last year, our Firm worked diligently to make our clients' visions of success a reality. We are very proud to have achieved an overall approval rate of 83% across all our files and programs. For programs regarding Permanent Residence for Entrepreneurs and Business Owners, we are proud to say that we achieved an approval rate of 100% in the last year. We are honoured to be part of our clients' journeys to Canada.

How Can Sobirovs Law Firm Help You with AAIP application?

Sobirovs Law Firm has extensive experience with Permanent Residence by economic immigration, including PNPs and, specifically, AAIP programs. Our diligent lawyers develop custom strategies for you that take into account both your business needs and immigration goals. Our team will be by your side throughout your journey, introducing you to the Canadian business market and taking care of your immigration needs so that you can focus on what really matters: building your business and your life in Alberta. Your dedicated case team is always in your corner – contact us today to learn more about your options.

Starting a Business VS Purchasing a Franchise VS Non-Franchised Business in Alberta?

Determining whether to start a new venture, open a franchise, or purchase an existing business is always a critical milestone for businesspeople planning a move to Canada. There are pros and cons to each option, depending on your circumstances. Regardless, you are well-positioned to benefit from Alberta's pro-business policies. Some applicants opt to invest in a franchise, as the proven business model and support network it provides helps reduce some of the risk associated with starting a new operation in a new country. For the same reason, some choose existing businesses with an established presence in their community, an experienced staff, and potentially a previous owner willing to help show you the ropes. On the other hand, many entrepreneurs like to have total control over every element of their operation while it gets off the ground or have a specific vision they want executed – in that case, planning a new business might be the perfect fit.

Which Community Should You Choose?

The AAIP defines "rural Alberta communities" as any community with a population of less than 100,000 outside the Calgary and Edmonton Census Metropolitan Area. This broad definition means that no matter whether you're seeking a northern mountain town or a bustling community on the prairies, you can find the perfect place for you. Participating communities are the first point of contact for this stream and reserve the right to meet only with potential candidates who may be a good fit. You can find the complete list of participating communities and dedicated contact people here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.