An amendment to the Corporations Act now makes it easier for newcomers to start businesses and create jobs in Newfoundland and Labrador.
The Corporations Act prescribes requirements for the incorporation, registration and governance of corporations in this province. Prior to fall 2021, the Act required at least 25 per cent of a corporation’s directors to be ‘resident Canadians’. The residency requirements for directors has now been removed. The elimination of the residency requirement makes it easier for international graduates and international entrepreneurs to create businesses and jobs in the province. The amendment comes into effect on April 1, 2022.
Constanza Safatle, originally from Chile, is the owner of St. John’s-based Newbornlander Baby Store Inc. She started her business in 2017, building a successful social enterprise, which employs four newcomers from Chile, Dominican Republic, Mexico and Brazil. Ms. Safatle is one of many individuals and business stakeholders who successfully lobbied government regarding the residency requirements for business incorporation.
This change enhances opportunities for business development and economic growth in Newfoundland and Labrador, and aligns with other Canadian jurisdictions which do not have residency requirements for incorporation.
Quotes
“Newcomers bring so much to Newfoundland and Labrador, by enriching our communities and growing our economy. We already know that many newcomers share an entrepreneurial spirit, so amendments to our Corporations Act offer another tool for them to access the supports they need to start businesses, create jobs, be successful, and put down roots to grow their families right here in our beautiful province.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“Newcomers drive our local economies, and bring rich cultures to our communities. I applaud the Government of Newfoundland and Labrador on their commitment to support even more newcomers to do business in the province, and look forward to working with them to promote economic growth and create jobs in the region.”
Honourable Sean Fraser
Minister of Immigration, Refugees and Citizenship Canada
“The removal of the residency requirement makes Newfoundland and Labrador more attractive for newcomers. We must position our province to become a destination of choice for people looking for a new place in which to work, settle and raise a family.” Honourable Sarah Stoodley
Minister of Digital Government and Service NL
“We are building a more inclusive and vibrant province that welcomes newcomers with a flair for business, just like Constanza Safatle. Today is about cutting red tape and making it easier for newcomer entrepreneurs to do what they do best – create jobs and turbocharge our economy.”
Honourable Gerry Byrne
Minister of Immigration, Population Growth and Skills
“This amendment to the Corporations Act opens opportunities for temporary residents who can’t find meaningful jobs, or who face barriers to entry to the labour market, so they can create their own jobs and businesses, and play an important role in the economy of the province. This is a big step in the right direction to improve retention in our province.”
Constanza Safatle, CEO
Newbornlander Baby Store Inc.
– 30 –
Learn more
Corporations Act
Follow us on Twitter @GovNL, @DGS_GovNL and @IPGS_GovNL
Like us on Facebook
Media contacts
Meghan McCabe
Office of the Premier
709-729-3960
meghanmccabe@gov.nl.ca
Krista Dalton
Digital Government and Service NL
709-729-4748, 709-685-6492
kristadalton@gov.nl.ca
Jeremy Reynolds
Immigration, Population Growth and Skills
709-729-1989, 709-691-2298
jeremyreynolds@gov.nl.ca
Savannah DeWolfe
Immigration, Refugees and Citizenship Canada
782-640-9306
savannah.dewolfe@cic.gc.ca
Constanza Safatl
Newbornlander Baby Store Inc.
709-728-7471
info@newbornlander.ca