Nunavut Entrepreneurship Incentive

Eligibility for the Nunavut Entrepreneurship Incentive is based on specific criteria that participants must meet regarding their business operations and residency status.

• The applicant must be a business entity such as a corporation, partnership, sole proprietorship, joint venture, or co-operative.
• The business must be designated as a Nunavut business by meeting legal requirements and ownership criteria, including maintaining at least 51% ownership by Nunavut residents.
• For non-resident businesses, they must have operated in Nunavut for at least ten years consecutively and meet the other criteria for overhead and management.
• The business must maintain an approved place of business in Nunavut, either through leasing or owning appropriate space for business operations.
• A resident manager must be in place, capable of managing the day-to-day operations within Nunavut.
• Businesses need to apply and receive the designation at least two weeks before the tender opening to be eligible.

Who is eligible?

• Nunavut businesses that are limited companies with at least 51% of voting shares beneficially owned by Nunavut residents
• Nunavut co-operatives with at least 51% of voting shares beneficially owned by Nunavut residents
• Sole proprietorships whose proprietor is a Nunavut resident
• Partnerships in which the majority interest and benefits are owned by Nunavut residents
• Non-resident businesses that have carried out business in Nunavut for ten consecutive years and meet the policy’s Nunavut business overhead requirements

Who is not eligible

The Nunavut Entrepreneurship Incentive aims to support local businesses, but certain criteria must be met ensuring alignment with the policy's objectives. Eligibility depends on fulfilling specific residency or operational requirements.

Eligible expenses

The Nunavut Entrepreneurship Incentive grant covers expenses directly associated with business operations and development in Nunavut.

• Costs of leasing or owning office, commercial, or industrial space for the primary purpose of operating the business.
• Expenses related to hiring and maintaining a resident manager.
• Operational costs for conducting the majority of management and administrative functions within Nunavut.
• Expenditures for training and employing local administrators and managers.
• Expenses incurred in the process of applying for and obtaining designation as a Nunavut business.

Eligible geographic areas

• Businesses located in Nunavut.
• Businesses operating in Nunavut communities that qualify as a “subject community” as defined by the Government of Nunavut for the specific contract.

• Consideration of the "spirit and intent" of the preference policy to determine approval, exceptions, and specific decisions.
• Accuracy and compliance of the information declared about Nunavut and local content (values, suppliers, subcontractors) in the submissions.
• Ability of the bidder to demonstrate a sustainable economic benefit for Nunavut through its activities.
• Adherence to government preference policies in the analysis of tenders and proposals.
• Application of tender adjustments based on the percentage of Nunavut and local content indicated and justified.

Here are additional relevant details for this grant:

• The Senior Management Preference Committee has the authority to waive the strict requirements of the Business Incentive Policy, provided the business aligns with the policy's spirit and intent and demonstrates long-term benefits to Nunavut's economy.
• Contracts under $1,000 must be sourced directly from approved Nunavut businesses, with no discount applied.
• Contracts valued between $1,000 and $5,000 include a 20% discount on Nunavut content, while those over $5,000 offer a 15-20% discount, including an additional discount for local content.
• If businesses fail to comply with the terms, they may face disqualification from the Nunavut business status, either temporarily or permanently.
• A Monitoring Office exists to ensure compliance with the policy and handle the designation of Nunavut businesses.