IN THIS GUIDE · Sixty percent of a real nursery counts; forty percent of a partner's project does not
Start with the E-2 eligibility and application overview
Nationality is measured at the enterprise level too
The nursery qualifies as a Canadian enterprise only while treaty nationals own at least fifty percent of it. If the U.S. partner later takes a larger stake, or if the Canadian investor becomes a U.S. permanent resident, the enterprise can lose its treaty nationality and every E-2 holder attached to it. Write the shareholder agreement so that ownership changes trigger an immigration review, and record the percentages with dated share certificates.
Commit the money before the interview, and make it stay committed
Capital counts when it is spent or contractually and irrevocably committed. Funds held in a Canadian account earmarked for the purchase are not invested. An escrow that releases to the seller upon visa issuance, and returns to the buyer only if the visa is refused, is the accepted way to protect the buyer while still showing commitment. A deposit the buyer can recover for any reason is not at risk.
Substantial is a proportion, not a threshold
There is no fixed minimum. The test compares the amount invested with the total cost of purchasing or establishing the enterprise; for an operating nursery with land, greenhouses, stock and equipment, the investor is expected to have put in a high proportion of the price. Loans secured only by the enterprise's own assets are not counted as the investor's capital, while funds borrowed against personal assets in Canada can be.
Develop and direct means running it
The investor must be in a position to control the business, ordinarily through majority ownership or through a managerial role with operational control. Sixty percent ownership with a role as the general manager satisfies this. A passive investor whose U.S. partner runs everything does not, no matter how large the cheque. Describe who hires, who sets prices, who signs supplier contracts and who chooses what to grow. Hypothetical example: a mushroom-growing operator buys a majority interest but leaves daily purchasing, hiring and crop decisions to a U.S. co-owner. Share certificates may establish nationality, yet the operating agreement and bank-signing authority will decide whether the investor actually directs the enterprise. The safer structure assigns defined operational authority before the application, then matches the business plan and day-to-day records to that authority. A title without decision-making power is weak evidence.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.