Top 3 Ways for Foreign Entrepreneurs to Come to Canada

Service Canada announced that they are completely revising the Owner-Operator LMIA program; learn more in our article detailing the cancellation and contact us to learn more about your options in Canada.

Business immigration in Canada is a pathway for foreign nationals to enter the country and contribute to its economy. The Canadian government offers various programs and streams to attract entrepreneurs, investors, and skilled workers alike.

Business immigration is a crucial component of Canada’s immigration policy, as it helps to address several key aspects of the country’s economy and offers numerous benefits to Canada including the following:

• Job Creation: Foreign businessmen and investors can create jobs for Canadians, contributing to the country’s economic growth and development.
• Innovation: Business immigrants can bring new ideas, skills, and technologies to Canada, enhancing the country’s innovation capacity and competitiveness.
• Economic Growth: Business immigration can stimulate economic growth by attracting foreign investment, creating new businesses, and increasing trade.
• Cultural Diversity: Business immigrants can bring diverse perspectives, experiences, and cultural backgrounds, enriching Canada’s social fabric and promoting cultural diversity.

Although immigration laws are quite complex, there is a basic fact that you must first understand. There are two types of visas for those who wish to emigrate to Canada: a temporary visa and a permanent residence visa.

Below are some key points you need to know about the two types:

Temporary Visas

• Temporary visas grant temporary authorization to enter and work in the country.
• Temporary Resident Visa (TRV) may be necessary depending on the individual’s citizenship and serves as a travel document that allows entry into Canada, distinct from a work permit.
• You must renew the visa/permit to continue working here when the temporary visa/permit period expires.
• Different visas have different expiration times and renewal rules. In addition, there are limitations on who can come with you and whether they will have the right to work here.

Examples of temporary business visas include Intra-Company Transfer, Significant Benefit and Owner/Operator LMIA-based business visas, which we will discuss in detail below.

The biggest problem with temporary business visas for entrepreneurs is that they are valid for a limited period of time and are often linked to the success of the business. Under a temporary work visa, it is often difficult to renew your business visa if your business fails or you decide you donʼt want to use your business anymore.

Therefore, while temporary work visas are generally easier and faster than permanent residence visas, entrepreneurs who want to stay in Canada in the long term should consult with an immigration lawyer about their stay in Canada and plan ahead. This is a crucial aspect of business immigration.

Permanent Resident Visa

• Permanent Resident Visa allows you to obtain permanent status in Canada so you can work permanently there.
• Permanent Resident Visa are a good option for entrepreneurs who want to settle in Canada in the long term and ultimately gain Canadian citizenship.
• Permanent Resident Visas may be secured if you have a strong and viable business idea. This can help increase your chances of success in your application.

Now that you have a clearer view of the type of visas available for foreign entrepreneurs, let’s discuss the top 3 ways for business people to quickly enter the Canadian market.

Intra-Company Transfer (ICT) Program

The ICT Work Permit Program offer pathways for foreign nationals to enter the country, run or manage commercial ventures and contribute to Canada’s economy.

Canada’s various free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, play a significant role in facilitating investor streams and mobility provisions for professionals seeking work permits.

Important factors for ICT work visa:

1. Uniqueness and viability of the intended 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.
2. 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.
3. Present evidence of public recognition; Such as 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.

Important conditions for ICT work visa:

1. Incorporation of a Canadian company
2. Securement of office space (can be a lawyerʼs office)
3. Detailed business plan including financial forecasts and a personnel proposal
4. The business must be active and operational within one year
5. Show that the company is fulfilling contract orders, holding inventory, having a revenue stream, etc.

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 organization’s ability to be established in Canada. A viable business plan is essential to meet these conditions and ensure the success of your business immigration pathway.

ICT Work Permit Application Process

The work permit application process for business immigration in Canada involves several steps:

1. Determine Eligibility: Foreign nationals must meet the eligibility requirements for a work permit, including having a valid job offer, meeting the requirements of the Labour Market Impact Assessment (LMIA), and possessing the necessary qualifications and experience.
2. Obtain a Job Offer: Foreign nationals must obtain a job offer from a Canadian employer that meets the requirements of the LMIA.
3. Apply for a Work Permit: Foreign nationals must submit a work permit application, providing required documents, including a valid passport, proof of language proficiency, and proof of education and qualifications.
4. Obtain a Work Permit: If the application is approved, the foreign national will receive a work permit, which allows them to work in Canada for a specified period.

Advantages of Intra-Company Transfer

Intra-Company Transfer (ICT) is a popular business immigration program in Canada that allows foreign nationals to transfer to a Canadian branch, subsidiary, or affiliate of their current employer. The advantages of ICT include:

• Simplified Application Process: ICT applications are typically processed faster than other work permit applications.
• No LMIA Required: ICT applicants are exempt from the LMIA requirement, which can be a lengthy and complex process.
• Flexibility: ICT allows foreign nationals to work in Canada for a specified period, with the option to extend their stay or apply for permanent residence.
• Career Advancement: ICT provides foreign nationals with the opportunity to gain international work experience, enhance their skills, and advance their careers.

By understanding the benefits and process of business immigration in Canada, foreign nationals can make informed decisions about their immigration options and take the first step towards establishing a successful business or career in Canada.

Significant Benefits 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 significant benefits, such as economic, social, or cultural contributions, 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).

Securing backing from venture capital funds, along with other funding sources, is critical for entrepreneurs aiming to demonstrate the viability and scalability of their business ideas to facilitate immigration and achieve permanent residency.

Required Documents:

• Foreign company 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 toward 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 the children may get a study permit. The 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 and permits (for the whole family of the business person); around $50,000—minimum set-up and 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.

Two-step Application Process

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 Express Entry.

Own Business 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 maintaining 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: There is 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. Provincial nominee programs (PNPs) also play a significant role in obtaining permanent residency by recruiting foreign skilled workers to fill local skills shortages.

Expenses:

Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas and permits (for the whole family of the business person); around $150,000—minimum set-up and 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.

How Sobirovs Can Help You With Your Immigration Strategy

Get in touch with us if you would like to benefit from any of the above-noted pathways to Canada. Sobirovs Law Firm specializes in bringing established foreign businesses and brands to Canada. The Start-Up Visa Program is another viable option for entrepreneurs to obtain permanent residency in Canada by launching innovative businesses. This program has specific eligibility requirements and offers insights into its approval rates and application timelines.