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APPLICATION ANSWERS · E-2 FIELD GUIDE

Kelowna: Must I buy the business premises outright for E-2?

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THE DIRECT ANSWER

There is no universal requirement to purchase real estate instead of leasing premises. Assess the actual enterprise, qualifying investment and operating rights. A lease does not automatically establish eligibility either; its terms and the complete business arrangement need review.

Explain how the enterprise will operate

Identify what the lease permits, what equipment and licences are needed and which conditions remain. Establish treaty nationality, control and nonmarginality separately. Buying a property cannot cure an unsupported business, just as a lease title alone cannot prove one is ready to operate.

Test the route in an evidence order: treaty nationality, enterprise ownership and direction, lawful source and movement of funds, binding commercial risk, and nonmarginality. A first review should produce a transaction ledger showing what has been paid or irrevocably obligated and what remains conditional. The investor must be responsible for developing and directing it, and the business cannot be marginal. Do not rely on a business plan without comparing it to signed contracts, premises, licences, and the owner's actual authority. The deciding records are usually the passport, company documents, bank trail, agreements, and a realistic operating model.

Hypothetical example: a mobile ultrasound service is funded by a Canadian citizen who will hire a clinical manager. The review must show her ownership and direction, committed equipment costs, and a business model beyond supporting only her household.