IN THIS GUIDE · Make the funds and ownership explanation understandable without changing their meaning
Start with the E-2 eligibility and application overview
Identify the real owners and directing authority
Relevant treaty nationals must own at least 50% of the enterprise. The investor must develop and direct through at least 50% ownership or other qualifying operational control. Explain entity names and actual rights accurately; translating a position as owner or director does not establish either treaty ownership or qualifying authority.
Trace the lawful commitment through the records
Funds must be substantial in relation to the business and committed at risk, with no universal minimum. Explain the genuine source and transfers rather than treating a final balance as the whole history. Properly structured visa-contingent escrow may qualify; a summary should not conceal actual release or refund conditions.
Read the real security and business capacity
Personal unsecured borrowing or debt secured solely by non-enterprise personal assets may count. Enterprise-secured borrowing is excluded even when personal collateral is also pledged. The enterprise must be real and nonmarginal, supporting more than minimal living for the investor and family or a significant economic contribution. Future capacity should generally be realizable within five years of normal business activity.
Keep evidence preparation distinct from immigration permission
The investor must intend to depart when E status ends, and Canadians generally need an E visa. Describe the real directing activities and operating resources without treating completed translations or financial summaries as approval. A clear file can explain the facts but cannot guarantee the government’s decision or permit work by itself.
Trace the investor’s nationality, capital and control
The evidence has to show money committed beyond recall and exposed to loss, which means an unconditional agreement, released deposits, equipment paid for and a lease carrying real liability. A shareholder who holds U.S. lawful permanent residence is generally not counted as a treaty national for these purposes, so a family member who obtained a green card years ago can affect whether the fifty percent threshold is met. Money sitting in a Canadian account, or held in an escrow that returns it if the visa is refused, has not yet been invested; the accepted approach is an escrow that releases to the seller on visa issuance and only that condition. Substantiality compares what the investor has committed with the total cost of establishing this franchise territory, and a lower-cost business needs a higher proportion. The capital must be irrevocably committed to the enterprise and genuinely exposed to loss; a revocable promise or money still freely available for another use does not settle that issue. Trace nationality through to individuals, then total the percentages against the fifty percent requirement rather than eyeballing them. Identify customers, premises, licences, staffing, inventory or equipment, projected revenue, and the applicant’s role in developing and directing the enterprise. Amount is judged proportionally: substantial in relation to the total cost of purchasing an established enterprise or establishing a new one, which is why a modest sum can be substantial for a service business and inadequate for a production facility.
Sources reviewed 2026-09-08. This guide covers a preparation focus; it is not an individual eligibility assessment.