6 Immigration Options for Entrepreneurs in Canada
Looking to start a business in Canada? Or, hiring internationally? This is a comprehensive guide on immigration options for entrepreneurs planning to make the move to Canada.
Temporary Options
Individuals who seek to establish and develop a business in Canada have several options to obtain a Canadian work permit to come to Canada temporarily.
Temporary residence through a work permit is also a viable alternative for individuals who cannot immediately obtain permanent resident status. This option could allow the business to be established and developed, while the applicant gains the necessary Canadian work experience or other qualifications that will allow the successful application for permanent resident status.
1. International Agreements
Canada has negotiated trade agreements with several countries, under which exist various options avenues for obtaining a Canadian temporary work permit. The Work permit can be used to operate a business, prior to obtaining permanent resident status. One frequently used option is for individuals who have invested a significant amount of funds into a Canadian business, which they will directly manage and oversee. These international investors may be eligible for a work permit of up to 1 year, with the possibility of renewal. Other options exist for service providers and certain categories of professionals.
2. Intra-Company Transfer – Start-Up Option
If your company is looking to start an office in Canada you may be able to get a temporary work permit to manage the establishment and development of your company’s presence in Canada. The applicant must have been working with the non-Canadian company for at least 1 year in a role similar to the corresponding future position in Canada, and the relationship between the office and the non-Canadian company must be one that qualifies under the regulations. This work permit can last for up to 1 year, with conditional renewals, and any time spent outside of Canada under the work permit can be recovered.
3. Owner-Operated Labour Market Impact Assessment (LMIA)
Aside from the two options listed above, most other work permits require a positive labour market impact assessment (an “LMIA”) from Social and Economic Development Canada. An LMIA usually requires a minimum of 4 months of advertising for the vacant position, to ensure no other qualified Canadians are available to take the job. Applying for a LMIA as an owneroperator provides an exemption from the usual advertising requirements, and therefore a quicker route to obtaining a Canadian work permit.
In order to qualify for the owner-operator advertising exemption, the applicant must have a controlling share in the business and intend to work in a high-level position.
You must also be able to demonstrate that:
- there is no employee of the business who can terminate your employment (i.e. you have no manager or boss); and
- your temporary entry into Canada will result in the creation or retention of employment opportunities for Canadians or permanent residents, and/or there will be skills transfer to Canadians or permanent residents.
This work permit can be granted for a period of up to 2 years.
Permanent Options
If you seek to come to Canada on a permanent basis to run your business, there are also several options available, depending on your situation.
1. Express Entry
If certain qualifications are met, an applicant may be able to apply for permanent resident status in Canada through the express entry system. One of the main qualifications is a satisfactory score on the Comprehensive Ranking System (“CSR”). The CSR system assesses an applicant based on:
- Age,
- English or French language ability,
- Education,
- work experience, and
- other factors that affect adaptability to Canada (e.g. attending a Canadian school, family in Canada, etc.)
If an applicant’s CSR assessment score is high enough, the applicant could be offered an invitation to apply for permanent residency in Canada (an “ITA”). Ideally, once an application is submitted in response to an ITA, it will be processed in under 6 months.
Historically, ITAs have been issued approximately every two weeks, with the most recent minimum score of 441. This minimum score set by the Minister of Immigration, according to the needs of the Canadian economy, and is not a guarantee of acceptance.
2. Provincial Nominee Programs
Each Canadian province and most territories have immigration programs aimed at attracting entrepreneurs. Most provinces require a minimum personal net worth and a minimum investment in a local business (whether a new business or a purchased, existing one) and an initial business plan. Many provide a 1-year work permit, after which your business’ progress will be assessed against the applicant’s initial business plan. If the business has fulfilled initial expectations, as set out in the business plan and the programs requirements, the applicant may be issued a certificate of nomination, which will be used to apply to the federal Express Entry program. The certificate will give the applicant an automatic 600 points, which will be enough to be issued an ITA for Canadian permanent resident status.
3. Start-Up Visa Program
The Start-Up Visa Program is a third entry-way to permanent resident status in Canada for qualified entrepreneurs. The following is required to qualify for this program:
- a qualifying business, where:
- each applicant must holds a minimum of 10% or more of the corporation’s voting shares (maximum 5 applicants),
- the applicants and their supporting designated organization together hold more than 50% of the voting shares, and
- at the time that permanent residence is received:
- the applicant’s management of the company in Canada is ongoing and active,
- an essential part of the business is conducted in Canada, and
- the business is incorporated in Canada.
- proof that the business is supported by a designated organization; these include incubators or other business groups approved by the Government of Canada,
- sufficient ability in English or French, as shown by the applicant’s score on an approved language test, and
- a qualifying amount of settlement funds.
For more information on which immigration option is best for you and your business, or for assistance designing your longer-term immigration strategy, contact us at Goodlawyer and we will refer you to qualified immigration legal counsel.
