Do You Need A Work Permit For Business Owners Canada

Several Canadian permanent resident immigration programs target entrepreneurs, but the process can take longer than it would otherwise be for a temporary stay in Canada. For this reason, many entrepreneurs first enter Canada by obtaining a temporary work permit. Due to the fact that many of Canada’s economic immigration programs value Canadian work experience, entrepreneurs with such experience can leverage this in support of their candidacy or application for Canadian permanent resident status.

Below is an overview of work permit options available to entrepreneurs.

CUSMA Investor

Under the Canada-United States-Mexico Agreement or CUSMA (formerly known as NAFTA), citizens of the United States or Mexico who invest in new or existing businesses in Canada may be eligible to apply for Investor work permits to manage their Canadian business. The CUSMA Investor program allows American or Mexican entrepreneurs who have already made a significant investment in a Canadian business, to enter Canada to develop and direct that business. Typically, the investor is the majority shareholder or sole owner of the business in Canada. As part of the application, the investor must prepare a business plan providing details of the total capital required to establish or purchase the business and provide evidence that a significant portion of these funds have already been irrevocably committed to the project. There is an expectation that the business will generate jobs or other benefits to the local economy and will not be purely self-supporting to the investor.

CETA Investor

Under the Comprehensive Economic and Trade Agreement, citizens of European Union member states who invest in new or existing businesses in Canada may be eligible to apply for Investor work permits so they can manage their Canadian business. This category is similar to the CUSMA Investor stream.

Other Investor Streams under Canada’s Free Trade Agreements

Canada also operates Investor streams under some of its other free trade agreements. Examples include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and he Canada-United Kingdom Free Trade Agreement.

Intra-Company Transfer

Entrepreneurs who plan to continue to operate an existing foreign business while also expanding into Canada may qualify for an Intra-Company Transfer work permit. The Intra-Company Transfer program is primarily used by multinational corporations to move management and key staff between branches, but it can also be well suited for entrepreneurs wanting to establish a new business in Canada.

Intra-company transfer is often a preferred option for entrepreneurs who plan to divide their time between managing their current overseas business and starting a new Canadian branch, subsidiary or affiliate. The basic requirements of the program are as follows:

• The new Canadian business must pass a viability test, which can be achieved by providing financial information, evidence that physical premises have been secured, and a business plan that provides for the hire of at least one Canadian citizen or permanent resident during the first year of operations.
• The foreign company and the Canadian businesses must be related in terms of their ownership structure. Specifically, the two companies must have either a parent-branch, parent-subsidiary, or affiliate relationship.
• The person being transferred to manage the new Canadian business must have been employed by the foreign business looking to transfer them for at least one year in a similar full-time senior managerial or executive position.

Entrepreneurs/self-employed candidates seeking to operate a business

An Entrepreneur/self-employed work permit may be an option for entrepreneurs who are the sole or majority owner of a Canadian business or in cases where the owner of the Canadian business intends to maintain a primary residence outside Canada. In such cases the work permit could be exempt from the need for the Canadian government’s labour market test, known as an “LMIA” or Labour Market Impact Assessment.

Immigration, Refugees and Citizenship Canada (IRCC) is reluctant to issue temporary work permits to business owners who plan to manage a permanent, year-round business in Canada on an indefinite basis. In such a situation, potential applicants may consider either restructuring their business in Canada so that they may become eligible for another type of work permit, or applying for permanent resident status through one of Canada’s business immigration programs.

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Important conditions for this type of visa include incorporation of a Canadian company, securement of office space (can be lawyerʼs office), and a detailed business plan including financial forecasts and a personnel proposal. Upon fulfilling the conditions mentioned above, a one-year work permit would be granted, which would only be renewed if the business owner has proved their organizationʼs ability to be established in Canada.

An important condition of an ICT visa is that the business must be active and operational within one year. While this will vary somewhat by company, it usually means hiring at least 1 new employee and having an office. It may be also required to show that the company is fulfilling contract orders, holding inventory, having a revenue stream, etc.

Summary of the ICT Program:

Who is Eligible:	Business owners (or Managers/ key workers) who have been working in a foreign company for at least 12 months prior to the application.
Program Requirements	Establish a company in Canada. The Canadian company and the foreign company must be owned or controlled by the same person (s).
Initial Investments	No minimum investment amount, but the foreign company (or the owner) must show sufficient funds in his/her bank account to start its operations in Canada (we recommend to show at a minimum around CAD$100,000).
Required Documents	Foreign companyʼs registration & ownership documents; Proof of active engagement in business for the foreign company (e.g. tax payments; bank statements; financial statements; licenses, permits & office lease; insurance/wage payments for employees, marketing material, contracts etc.); Applicantʼs personal documents (educational diplomas, employment letters, passport, marriage certificate, passport photo, bank statement, proof of ownership of the company or proof of working for the foreign company in a managerial capacity); A business plan for the Canadian company (can be provided by a lawyer in Canada).
The Validity of the Initial Visa	1-year (for start-ups) work permit; 2 years of work permit for the established companies.
Conditions for Visa Renewal	Within the first year, the Canadian company must secure an office and hire at least 1 employee (Canadian citizen or permanent resident). The business must be operational (no profits are required)
Family Members	Family members can join the main applicant. The spouse may get an open work permit and children may get study permits. Children may attend a public school for free.
Access to Health Care	The applicant and the family members can get access to free health care during the validity of their visas.
Processing Times	Generally, 1– 3 months (depending on the documents collection)
Ability to Stay Permanently	Yes, applicants will have various options to stay in Canada permanently, depending on the applicantsʼ business & language skills.
Expenses	Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas & permits (for the whole family of the business person); Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas & permits (for the whole family of the business person); Around $50,000 – minimum set up & operation costs of the business in the first year. We suggest investing at least $150,000 – $200,000 into the new Canadian corporation so that your application is strong.

Important factors for this type of work visa are the uniqueness and viability of the indented business or project in Canada, and whether or not there will be a significant contribution to Canada that is worthy enough to allow foreign businessmen to work in Canada.

Businessmen must present evidence of past personal accomplishments in business, such as unique business and demand for their products/services, number of offices, number of workers hired, amount of revenue generated, sales of a self-designed product, etc. or with evidence of public recognition, for example, international interest, media coverage, important clientele, etc. For many years this type of work visa has been used by professional athletes, actors, dancers, and scientists, but recently it has become a viable option for accomplished businessmen.

Summary of the Significant Benefit Program

Who is Eligible:	Business owners who have unique businesses, providing unusual goods/services or know-how, and intend to expand their business in Canada.
Program Requirements	Establish a company in Canada and demonstrate that the intended business would generate economic, social or cultural benefits to permanent residents or citizens of Canada.
Initial Investments	No minimum investment amount, but the foreign company (or the owner) must show sufficient funds in his/her bank account to start its operations in Canada (we recommend around CAD$100,000).
Required Documents	Foreign companyʼs registration & ownership documents if any. Proof of business accomplishment or uniqueness of the business or know-how (e.g. patent applications, news articles, sketches, marketing material, etc.); Applicantʼs personal documents (educational diplomas, employment letters, passport, marriage certificate, passport photo, bank statements, proof of business experience & recognition – prizes, news articles, international offers, etc.); A business plan for the Canadian company (can be provided by a lawyer in Canada).
The Validity of the Initial Visa	2-years, work permit, renewable unlimited times.
Conditions for Visa Renewal	Within the first 2 years, the Canadian company must make progress towards its goals and the business must be operational (no profits are required).
Family Members	Family members can join the main applicant. The spouse may get a work permit and children may get a study permit. Children may attend a public school for free.
Access to Health Care	The applicant and the family members can get access to free health care during the validity of their visas.
Processing Times	Generally, 10 days – 1 month
Ability to Stay Permanently	Yes, applicants will have various options to stay in Canada permanently, depending on the applicantsʼ business & language skills.
Expenses	Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas & permits (for the whole family of the business person); Around $50,000 – minimum set up & operation costs of the business in the first year. We suggest investing at least $150,000 – $200,000 into the new Canadian corporation so that your application is strong.

If the work visa is issued to the foreign businessman, he/she will be required to become an employee of his/her Canadian company, which in turn means that the company must pay the foreign worker a wage that meets the medium wage requirements.

This is a two-step application. First, the foreign businessman must apply to the Employment and Skill Development Canada (ESDC) office to obtain a positive Labour Market Impact Assessment (LMIA). Second, once the businessman receives a positive LMIA, he or she can obtain a work visa usually up to 2 years. Once a work visa is obtained, the businessman will, in most cases, be in a position to apply for permanent residence through the Express Entry program. This type of work visa generates a substantially better chance for businessmen to permanently immigrate to Canada under the Express Entry.

Summary of the Owner-Operator Program

Who is Eligible:	Business owners who have a controlling interest in the Canadian business (a sole or majority shareholder).
Program Requirements	The key requirement is that the foreign business person owns a business in Canada in which he or she owns a controlling interest of more than 50%. Other requirements include: -Funding the business and maintain employment with a wage equal to or greater than the median wage requirements for the position; and; -Active management of the business (i.e. it cannot be a passive investment) in a position that accords with the foreign businessmenʼs qualifications and experience. -Employing at least one Canadian or permanent resident (ideally in the first year as described in the business plan).
Initial Investments	No minimum investment amount, but the Canadian company must show sufficient funds in its bank account to pay the salary of the foreign owner (we recommend around CAD$100,000).
Required Documents	Proof of ownership of the Canadian company by the foreign national (registration documents or Share Purchase Agreement). Proof of sufficient funds in the bank account for the Canadian company; Proof of genuineness of the business in Canada (e.g. marketing material, website, agreements, office rent, invoices etc.) Applicantʼs personal documents (educational diplomas, employment letters, passport, marriage certificate, A business plan for the Canadian company (can be provided by a lawyer in Canada).
The Validity of the Initial Visa	1 or 2 years, depending on the nature of the business
Conditions for Visa Renewal	Payment to the foreign owner all the wages, and meeting the employment conditions as stipulated in the initial application.
Family Members	Family members can join the main applicant. The spouse may get a work permit and children may get a study permit. Children may attend a public school for free.
Access to Health Care	The applicant and the family members can get access to free health care during the validity of their visas.
Processing Times	Generally, 2 months
Ability to Stay Permanently	Strong chances to stay in Canada permanently
Expenses	Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas & permits (for the whole family of the business person); Around $150,000 – minimum set up & operation costs of the business in the first year. We suggest investing at least $150,000 – $200,000 into the new Canadian corporation so that your application is strong.

Conclusion

There are many obstacles that can stall new business owners as they attempt to do business in Canada. The most common ones include finding the money to start a new business, and navigating through the bureaucracy of the government’s paperwork requirements. If you are already a Canadian resident or citizen, and have proven your ability to establish yourself in your new home country, then you may qualify. After all, there is no reason why a highly trained foreign worker should not be encouraged to contribute their skills and work ethic to our economy.