Legislative Schemes of Canada and Australia for Facilitating Business Migration - Coursework Example

Running Header: Business Immigration Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Business Immigration Contents Contents 2 Introduction 3 Australia 4 Business Owner (Provisional) 5 Investor Provisional 6 Investor Residence Permanent visas 7 Business Owner Residence 8 Senior Executive (Provisional) 9 Business Talent Visa 9 Established Business in Australia 10 Canada 10 Canadian Immigrant Investor Program 12 Entrepreneurs Program 13 Self-Employment Visa 15 Comparison between Canadian and Australian Schemes 18 Conclusion 20 Bibliography 22 Introduction The world today is full of challenges which have pushed many governments to deploy very comprehensive measures in order to sustain their countries economically1. In the current technological and globalized world, need for optimizing the availability of resources and acquiring others from different sections of the world have made many countries to put strategic measures in order to better their economies. Business migration is one way through which countries are able to bring in new ideas and resources in their countries2. This in turn creates more employments and improvement of the economies of the associated countries. However, if it is not properly planned, business immigration may result to negative results in countries implementing it. Canada and Australia are putting diverse measures to welcome anything that brings economic progress while repealing anything that derails their economies3. Their business immigration models are designed through legislative schemes to ensure they meet the objectives for which they are intended for4. This essay seeks to look at the legislative schemes designed by the two countries in order to facilitate skilled and business migration. The essay further seeks to compare how these schemes are implemented in the two countries and evaluate how effective they are. Australia Business migration to Australia does not pose many challenges to anyone who brings value to this country. However, if the interest of migration does not conform to the wish of the country, then living in Australia will not be for long5. Except for very few exceptions, whenever one requests to migrate to Australia for business, he or she is given a 4 years temporary Visa after which one is allowed to apply as a permanent residence6. It is through legislation of this policy that the Australian government is able to ensure only reliable and productive investors are allowed in the country. The Australian immigration restriction act provides policies through which illegal immigrants are deported and provisions through which persons seeking to enter and settle in Australia should use. The visa laws were first drafted in 1907, but since then, there have been different changes in the provisions of these visas. There are only eight provisions allowed for business migration in Australia; investor provision; investor residence, business owner provision, business owner residence, senior executive, business talent, established business in Australia and business visitor Visas7. Business talent is skilled visa type while the rest are business visas. Business Owner (Provisional) This form of Visa is one that allows the people who have interest in owning a business in Australia to invest or establish it8. The business owner subclass 160 and subsection 163 explains that this is a temporary Visa that allows one to invest and establish business. It is normally offered for a maximum period of 4 years. During this period, the Australia’s internal structure evaluates the performance and commitment of the business owner in exploiting the given opportunity9. After this, the owner of the business is allowed to apply for permanent owner residence. Whether or not that the Business Owner Residence visa will be granted depends on the operations of the business in the four year period10. In an effort to facilitate and encourage as many people as possible to apply for this visa, Australia allows applicants to apply for this visa at branches in different parts of the world near their countries11. Among the popular application centers are Hong Kong, Taipei and Perth. Australia is more interested in investors who have their businesses in rural region. For you to qualify for this visa, then you ought to prove to have had a successful business background for at least 2 years and ability to integrate with Australians. Investor Provisional The Australia’s investor provisional visa is given under subclass 162 of legislation to people who have a good record of investment ownership or portfolio in a form of business12. Additionally, the applicant should be willing to invest a large amount of money for at least 4 years, the period at which the visa shall be valid13. After the four years period, the investor is at will to apply for a permanent residential visa through business owner residence or investor residence visa14. Investor Residence Permanent visas Those who have acquired this visa become permanent residence in Australia. It is offered under Subclass 405 of legislation. Unlike the provision visas, these visas are only applied and approved in Australia15. For one to qualify for this visa, then he or she must fully meet the following conditions: Must have held an investor provisional visa for at least 4 years Must have stayed in Australia for at least two years The investment that led to the person been granted visa must have been continuously active for entire four years period The owner of investment or business must prove to have a commitment of maintaining all the activities that relates to the investment or the business. The owner or the spouse must never have had any history relating to businesses that are not acceptable. The benefit that is associated with this visa is that the investor is allowed to migrate with all the family members as wrong as they satisfy the health and character criteria. Business Owner Residence The business owner residence visa is only allowed to persons who have shown interest of ownership of business in Australia for a period of at least two years16. The visa is offered under Subclass 890. In this case, one must have shown held a provisional visa for a period of at least four year, two of which he or she have been fully and actively engaged in the business activities. Upon being granted this visa, the concerned person is allowed to permanently migrate to Australia17. For one to qualify this visa, then he or she should meet the following minimum conditions: Must be a holder of provisions for business owner, investor or senior executive for a period not less than one year. Must have shown very high interests of owning one or more form of Australian businesses for the period of 2 years. The business that the person invests in must have shown progress in terms of profit and expansion and possibility of progressing further. Senior Executive (Provisional) Provisional senior executive visa is given to individuals who have experiences in managing large corporations18. Under subclass 161 of legislation, this visa that is granted for 4 years, a period which a person is required to establish or make substantial investment of a business in Australia. This is a temporary visa which allows the person to prove capability and interest of sustaining a reasonable venture in Australia. To qualify for this visa, one needs to have had a business career that is successful that is genuine19. Experiences of business being subjected to liquidation or receivership, insolvency and bankruptcy would require the owner to proof that that these issues were not of very significant factors to the management20. You should also show a realistic and genuine commitment of continuously improving in managing the business once you enter in the Australian market. Ultimately, you should be able to positively contribute to the economy of Australia. Business Talent Visa This was the latest visa act law to be implemented which was in 2007. According to business talent subclass 132, the business talent visa also called migrant is given to only given to people who have shown successful business career21. In this case, either the territory government or the state of Australia sponsors the individual to do business in the country. The person is expected to partly own the business and be involved in managing the business when in Australia22. Unlike the other form of visa, this person is not required to apply for provisional visa before applying permanent visa. Established Business in Australia This is a form of visa that allows individuals who have owned businesses in Australia for a period of more than 1 ½ years to apply to be permanent residents. All that is required in this case is the proof that the individual have had a successful business career for the period that the 1 ½ year period. Additionally, the owner should pass a business skill point test, be a holder of enough assets to sustain the business and be committed to maintain the business in Australia. Canada The structure of owning business in Canada as a foreigner is slightly different from that of Australia. The structure is outlined in the Immigration restriction act, 1976. In this act, the economic immigrants consisting of both skilled workers and business men are allowed to live and settle in Canada. There are different forms through which an investor or a business person can engage in business either in permanent or temporary basis. However, all the visas promote the individual to start or manage their businesses with the aim of becoming Canadian citizens. Canadian market structure allows investors or foreigners to negotiate with the customers in before fully deciding on the formula or kind of venture they intend to establish23. A provision that allows persons to work for a short period is applicable in this case.This provision allows the foreign groups or companies to work for short term periods of time are also diverse.24 The business short stay subclass 456 allows the foreigners to engage in short term contracts after successfully striking deals with the customers. There are also provisions that allow a foreign company to work if it is doing it on behalf of another company or group of people within Canada. If a foreign company or an individual succeeds to obtain a project in Canada and then wishes to engage on that activity for a temporary period of time, such a company would be required to have at least some of its employees especially from top management being from Canadians25. For such a company to engage in operations in Canada, then it need not to establish a registered business entity, rather what is required is willingness and ability of carrying out the activities as signed out in the contract. It is for this reason that each form of scenario is treated independently to come up with unique solutions that are going to be welcome by both the investors and the customers in Australia26. However overall there are three major categories of business visas in Canada; Immigrant Investor program, entrepreneur program visa which falls under investor visa category and the self-employed person’s visa. Canadian Immigrant Investor Program The Canadian Investor program is a Visa aiming to attracting persons who have resources and are experienced in business to do business in Canada27. This visa is for qualified managers and business persons who would wish to migrate to Canada to do business. Any investor wishing to do invest in Canada has to show business capabilities for a short period of time in Canada before they are fully allowed to own citizenship. For one to be granted this immigrant investor program visa, the person must have management or business background of at least 2 years and a minimum amount of 50,000 pounds to establish the business in Canada. Upon approval of the application, one the business person is required to have an investment of at least CA$800,000 with the Quebec or Canadian. Moreover, one is free to settle with the family. The individual and the spouse would also be allowed to purchase properties, work in Canada, have access to state health care, access to education and other benefits that citizens of Canada enjoys28. After three years of settling in Canada, the business person will be qualified to attain the Canadian citizenship. Entrepreneurs Program The Entrepreneur program is a visa that falls in the category of business class. It aim is attracting migrants who are experienced so that they can own and be actively engaged in managing such businesses while they are in Canada. This is a strategy by the government through which employment opportunities and economic growth are achieved. For one to be an entrepreneur in Canada, he or she must have demonstrated experience in business for a short period of time while in Canada. To qualify in the Entrepreneur category, the person must have at least CA$300,000 that is legally acquired in order to establish a business. It is a requirement for a person to have actively controlled and managed a business that qualifies the Canadian standards for at least 1 year within a period of 3 years from the time a person becomes a permanent resident29. Moreover, such a business must have created new employment opportunities within the same period30. Whenever one qualifies to get this visa, the family members are automatically admitted with the same conditions. Persons who migrate to Canada with this visa sign a legal document that explains that they intend to be permanent residence and are capable of meeting the conditions of a permanent residence. Additionally, there is provision for business visitors in Canada. In Canada, there exists an organized system that enables investors to investigate the viability of their business before they establish the businesses. Most of the businesses that requires investment may need proper planning and exploration before they are enacted31. In this case, Canada has a system whereby such an investor comes to the country with the intention of finding the possibility of engaging in a business32. During this period, the investor is made aware of the situation in Canada and may initiate signing of agreements33. There are many classes of Business visitors, each tailored to specific kind of business. However, the guidelines toward establishing such businesses are aimed towards improving the economy of Canada34. For instance, a person who intends to start a business may be required to employ a certain percentage of Canadian workers and the main source remuneration of such a company would be required to be derived outside Canada35. Self-Employment Visa The Canadian self-employment is intended for individuals who have ability and intention of creating their own employments36. Specifically, the persons who apply this visa are anticipated to contribute in the athletic or cultural life in Canada. Under this category, no conditions of immigration are obligated on this class. All is required is that the immigrant must be experienced and have ability and intention of establishing a business capable of contributing to athletics or cultural activities and creating employment opportunities in Canada. Individuals who have the ability of purchasing and managing farm are also allowed to migrate to Canada under this category. The major conditions of migrating to Canada under self-employment Visa is that one should be experienced in managing farms, athletics or cultural activities37. The person must also have ability and intention of establishing business that significantly contributes to the purchasing and management of farm, athletics or cultural activities in Canada. When a person has acquired enough resources out of business, he or she is allowed to expand business for long term38. This is explained in subclass 456 of the business short stay act. If the company is already engaging in short term projects, then it may be allowed to expand its operations or engage in multiple ongoing projects39. In this case, for the operations of such a business in Canada would require involvement of Unlimited Liability Corporation, Limited Liability Partnership and Provincial or Federal Incorporation. Business expansion would in most situations be accompanied by permanent residence which is allowed in Canada40. In this case, all that is required is to respect the international treaties such as GATS and NAFTA as well as those provisions that govern Significant Benefit to Canada. The entire ideas of these treaties revolve on ensuring that the company only engages to business operations that are substantial41. Additionally, there are three programs that enable foreigners to do business in Canada. These programs are Immigrant Investor program, immigrant investor program and the self-employment program42. A person may be allowed to permanently reside in Canada through subclass 124 and 125 of the permanent visa entry act. The immigrant investor program allows investors who have demonstrated that they are eligible and experienced in business to establish a business that shall contribute to the economy of Canada43. For such a business to be allowed to carry its activities within Canada, it should be able to prove ability to manage and compete effectively in the Canadian market. The Canada’s Entrepreneur program is for individuals who have evidently shown that they have capacity to start and sustain new ventures for a period of at least two years44. The applicant need to proof that he or she has adequate management and control skills to sustain a business45. Moreover, the entrepreneur should be having intent and ability of not just starting but also investing the business in conditions that satisfies the business of Canada. The self-employed program is intended for individuals that have at least two year experience in activities such as farm management, athletics or cultural activities and are willing to invest in it46. In this category, there is no sufficient amount of capital that is required for one to start but one should be able to at least maintain him or herself, and the members of the family there are living together47. Comparison between Canadian and Australian Schemes Both Canada and Australia promotes and encourages investors and business persons to engage in business activities in their countries48. The main idea for promoting this is to ensure that there is mutual exchange of knowledge, goods and services between the involved countries. Both countries ensure that the interests of their countries and those of the investors are protected through binding contract. The only difference here is that for in Australia, the investors or business men have to outline procedures for conducting business which include at least four years of provisional before one is given a permanent residence visa. However with Canadian contracts are mainly determined by the customer or client with the foreign companies that makes the system less rigid49. There is also observable difference in the diversity of the implementation of the schemes. Australian allows different ways for the investors to enter the Canadian market each of which is dependent on the objective of the investor50. On the other hand, the Canadians have a direct way of welcoming the investors without many regulations. However, there ensure that the investor brings in quality through signing of documents before the start of the contract51. This ensures that both the interests of the investor and those of Canadians are protected and any bleach of such document could attract a severe penalty to the party concerned. There is also observable similarity in the way the focus of the schemes that are being implemented. Australian has a diverse welcome to any foreigner who identifies anything he or she can do in that country52. As long as you meet the conditions, then there is nothing preventing such and individual from investing in Australian Market. However, Canadian is more specific of what they want out of the investors. It is Canadian who decides what kind of investors they want to see. They initiate the business and then request the investors to come and see where they can fit to make the objective of the initiated process succeed. It is at this point that the investors are welcomed to sign contracts of what they shall be doing while they reside in Canada. Additionally the investors are at will to diversify or engage in different businesses in Canada than it is in Australia53. It is therefore faster and easier for an individual or company to find it investing in the business activities that it is in Australia. Conclusion Business Immigration enables countries to welcome foreign investors to do business in their countries. How effective the relationship between the two groups is mainly depends on the legislative scheme that creates the relationship between the two groups54. Canada and Australia have professionally opened avenues in their market to capture all forms of investments from foreign investors. The Australian legislative scheme is mainly is granted through visas which are whose regulations are entirely designed by country’s legislative procedures55. For a person to permanently reside in this country, then the individual must go through at least a two year provisional period56. On the other hand, Canada legislative scheme is mainly designed in a way it promotes negotiations before engaging in mutual business relationship57. In this case negotiations that eventually lead to signing of the contract are made between the investor and the customer in Canada. The effectiveness of the two schemes is dependent on the environmental conditions which surrounds the business or investment. In most of the situations they work for both interests of the investors and the countries. Bibliography Acacia Immigration. 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