Active investment migration programs (Business Immigration) are excellent channels to access countries that do not have citizenship by investment programs or Golden Visas. Nations like Canada, New Zealand, Australia, the Netherlands, and the UK rely on active investment programs to attract investor immigrants.
These programs necessitate active involvement, requiring investors to engage in day-to-day management activities, which in turn translates to establishing a business.
Active Investment Programs: Application mistakes
Although the active investment programs are straightforward enough, some individuals make easily avoidable mistakes, such as:
Unsuitable Business Choice
When assessing an application, government officials focus on three key aspects:
- The applicant
- The business
- The investment
Hence, a crucial factor emerges—it all has to make sense.
Many active investor visas allow applicants to either establish their own business or buy an existing one. However, when deciding on the business, applicants must ensure it resonates with their expertise.
For example, a pharmacist may want to get out of the field or just doesn’t want to invest heavily in opening a pharmacy, which is fine. They should choose a business that is close to their experience, like a dietitian centre or a medical equipment warehouse, but not something far-fetched like a bakery or an automobile dealership.
This choice is pivotal as the processing officer will look into the applicant’s background to assess their capability in running the chosen business. If the business aligns with their expertise, even if on the edges, it’s acceptable; otherwise, the applicant will be rejected.
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Investment Amount and Business Scope
Additionally, the investment amount also has to correspond with the proposed business. Opening a small cake shop in Halifax with a capital of CAD $150,000 makes sense, but establishing a cleaning chemical plant for the same amount doesn’t.
In short, all the facets within the application need to logically harmonise together, a matter that is simple to do with enough research, consideration, and expert assistance.
Unclear Business Plan
Developing a business plan follows a straightforward methodology; it must include criteria such as the business idea, objectives, obstacles, operations, financial forecasts, expenses, location, and scalability.
However, that methodology can shift depending on the reason for drafting the business plan. If it is for personal use, it will focus more on operations, obstacles, and milestones. Writing it for a funding company will highlight profitability, growth, and feasibility.
Likewise, writing a business plan for an immigration application requires a different set of overtones. The country running the program wants to understand how the proposed business will help its economy, requiring applicants to focus on specific criteria:
- Business feasibility and stability
- Job creation
- Export
- Attracting new businesses
- Serving underdeveloped areas
- Innovation
By emphasising any of the above criteria, an applicant will boost their chances of approval as the processing officer can easily tick off the box regarding benefits to the country’s economy.
Developing a business plan follows a straightforward methodology.
Incompatible Area
Another important aspect is choosing the right country and area. Developed nations such as Australia, Canada, and the US, for example, have massive economies, so examining slight differences between them to choose where to establish a business won’t yield solid results.
Considering factors like preferred location, residence permits, trade routes, and bilateral tax agreements is important but doesn’t affect the eventual application. What does, though, is choosing the state or province within the country.
That choice is important because in Canada, for example, every province has distinct requirements. Choosing one that aligns with the applicant’s skills, budget, and business focus is key to a positive result.
Moreover, the choice of area will affect the overall investment amount. Expenses in New York, for example, are higher than in Ohio, so the rent, wages, and overall overhead will require a higher budget.
An applicant also needs to consider business factors when choosing an area, such as:
- competition
- market purchasing power
- market demand
Therefore, by choosing a proper state with a favourable business environment that suits the applicant’s profile and business needs, success chances increase significantly.
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Making it Easy
Altogether, active investor visas may seem complicated from the outside, but for those who deal with them on a daily basis, they are straightforward. Applicants need to make choices that ultimately make sense from an immigration and business standpoint.
At Savory & Partners, we will help you analyse, plan, and submit your application so you can begin your active investment immigration journey. All you need to do to start is contact us today to book a comprehensive consultation with one of our experts.
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