If you are exploring avenues to obtain Canadian citizenship or permanent residency or wondering about business immigration as a pathway, then this page is for you. Canada has several immigration options for business owners, including the Start-up Visa, Self-Employed Programs, and Provincial Nominee Programs (PNP). The Self-Employed Persons Program is a specialized pathway for individuals in the arts, culture, or athletics. All business immigration programs start with a work permit, and some of them can lead to permanent residency faster than traditional methods. We’ll discuss how this process works and offer step-by-step guidance that starts with getting a work permit, moving on to permanent residence, and finally, Canadian citizenship.
You can always use our free assessment tool to find the best program that suits your situation or schedule a consultation with our top business immigration lawyers.
Business immigration in Canada is a category of immigration that consists of various programs designed to attract foreign business owners, investors, entrepreneurs, start-ups, and high-net-worth individuals looking to establish or expand their business ventures within Canada. It includes the Start-up Visa (SUV) program, provincial programs tailored for entrepreneurs, the Self-Employed Program, and Labour Market Impact Assessments (LMIAs) for business owners. Business immigration also includes some pathways that transition from a Work Permit (WP) to permanent residency (PR).
Understanding the Canadian business and immigration landscape is crucial for foreign entrepreneurs, as it encompasses unique challenges, resources, and opportunities that can significantly impact their success.
These programs may offer a way for these individuals and their families to obtain permanent residency by starting a business or buying a business in Canada and contributing to the Canadian economy through business activities.
Let’s explore each step of the business immigration pathway and see which ones allow you to obtain permanent resident status in Canada through investment and ultimately become Canadian citizens.
Developing a strong business idea is the foundational step in starting a business.
There are four ways foreign investors can invest in Canadian business:
You do not have to be a Canadian permanent resident or citizen to start or invest in a business in Canada. However, you cannot work in your business without a valid work permit. Therefore, hire a Canadian manager to operate your business until you are authorized to work in Canada.
Your initial investment amount to buy or establish a business in Canada can range between CAD $150,000 and $350,000, but depending on your personal and financial goals, this amount can be higher. For example, a business in Canada that generates net profits of $100,000 per year typically costs between $300,00 to $500,000 (net revenue x 3 to 5). It is also important to understand both federal and provincial tax laws in Canada, as tax rates and regulations can differ by province, which is critical for compliance when filing tax returns and managing corporate taxes. These taxes apply to all kinds of businesses in Canada.
The table below demonstrates the pros and cons of each option for business investment in Canada.
| Cost | Risk (profit Potential) | Time to Operate Before PR Application | Difficulty to Operate | Business Performance Requirements for Permanent Residence |
|---|---|---|---|---|
| Start A New Business Moderate: $150,000+ |
High | At least 12 months | Difficult | Active company in Canada; Commercial office; At least 2–3 Canadian employees; 12 months of operations. |
| Buy A Business High: $250,000+ |
Moderate | No minimum requirement | Moderate | Ownership of 51% of shares; Active company; At least 2–3 Canadian employees. |
| Buy Shares in a Business High: $200,000–$500,000 |
Moderate | No minimum requirement | Simple | Active company in Canada; Commercial office; At least 2–3 Canadian employees. |
| Buy a Franchise Moderate: $150,000+ |
Moderate | 12 months if a new location | Simple | Active company in Canada; Commercial office; At least 2–3 Canadian employees; 12 months of operations. |
Once you have started or purchased a Canadian business, you can apply for a work permit as a foreign owner of a Canadian business. Several different work permits will be available to you based on your background and immigration goals. They include the following:
Upon arriving in Canada on a work permit, you must operate your business in Canada, usually for a minimum of 12 months (sometimes 18 months), before transitioning to permanent residence through suitable business immigration programs. The length of operation depends on the type of business you have (i.e. established or new), the program you apply under and your work permit type.
Obtaining the applicable business permits and licenses is a fundamental step for establishing and running a successful business in Canada.
Note that your business is not required to generate specific revenue or even be profitable. But it must be active and operational and have sufficient capital to cover the operational costs and pay your wages.
If you have been working in Canada as a business owner for at least 12-18 months and are actively involved in your enterprise, you might qualify to apply for permanent residence through PNPs. The Self-Employed Persons Program is another pathway for individuals in the arts, culture, or athletics to obtain permanent residence by demonstrating significant contributions to Canada’s cultural or athletic sectors. You need to speak about this topic with your immigration lawyer in advance if your ultimate goal is to become a permanent resident in Canada or a proud Canadian citizen, as business immigration regulations constantly change.
Understanding these intricacies by your immigration lawyers is crucial in navigating the journey from business ownership to permanent residency in Canada. Understanding the Canadian business landscape is essential for entrepreneurs, especially foreign nationals, as it involves unique challenges, resources, and opportunities.
Read the Success Stories of our Clients who relocated to Canada by establishing or acquiring a business in Canada.
Below, you will find answers to the most commonly asked questions related to the subject at hand.
In general, developing a strong business idea is crucial for potential immigrants, as it forms the foundation of successful immigration for business owners and is often a common question among those considering this pathway. To learn more about the main pitfalls of a business plan, watch this video.
No, because in Canada, we do not have any immigration programs allowing you to “buy citizenship” or “citizenship by investment.” However, you can become a citizen of Canada through business immigration programs and pathways, where you must first invest in a business in Canada (either buy or start your own), obtain permanent residence, and live in Canada for 3+ years before you can apply for Canadian citizenship. Therefore, foreign investors should first focus on becoming permanent residents to obtain Canadian citizenship. Learn more about whether you can buy Canadian citizenship in our comprehensive guide.
The minimum investment amount needed in programs that may lead to permanent residency in Canada is $100,000. The investment amounts are business-specific and should make sense for the business you intend to do in Canada. For example, if you want to establish a consulting business, your initial operational costs may be less than $100,000. However, if you plan to run a restaurant, your investment amount could be over $350,000. Therefore, the investment amount will depend on your business plan, location, and marketing strategy. In our practice, our clients usually allocate around CAD $250,000 to invest and have access to an additional $100,000 to cover operational costs in year 1.
It usually takes 2-4 months to get a work permit as an investor/entrepreneur in Canada and another 1-2 years to obtain permanent residence in applicable immigration programs. Remember that these timeframes are estimates only based on our experience and can vary depending on your geographical location, application type, business performance, and the availability of documents.
A start-up visa is an immigration program that allows founders worldwide to obtain permanent residence (and subsequently citizenship) in Canada by moving their companies or projects to Canada. This program targets highly scalable and innovative companies that have the potential to compete on a global scale. If you have an innovative idea or a tech company in your home country, read our page on Start-Up Visa. You must secure funding from a designated organization and obtain a letter of support for your project.
You do not have to be a Canadian permanent resident or citizen to register your company in Canada. However, you are not allowed to work in your business without having a valid work permit. It would help if you relied on Canadians to operate your business until you secured your authorization to work in Canada.
When it comes to Canadian immigration, nothing is easy. These “golden visa applications” are usually very complex and require professional help with the immigration aspect of the application and business case presentation for your planned investment. However, when done correctly, entrepreneur immigration applications involving establishing/acquiring a business in Canada usually have a 90%+ approval rate (in our practice, at least). They could be a viable pathway for immigrant entrepreneurs to relocate to Canada through investment.
We recommend investing in a business you understand, have experience with, and can commit to in the long term. We do not support entrepreneurs or investors who intend to buy a business for “immigration only” purposes. We encourage our clients to invest in a business “for profit” and use their time and energy doing business rather than worrying about immigration. The immigration aspect should be outsourced to professionals and should not be the main focus of immigrant entrepreneurs. Immigration becomes easy when business is thriving.
At Sobirovs Law Firm, we specialize in supporting entrepreneurs looking to invest in or start a business in Canada. Our services include:
Book your one-hour strategy meeting with our experienced immigration lawyers today to discuss your immigration options.
“For the foreign entrepreneur, Canada is not just a market, but a destination for a new life. Our goal is to transform your entrepreneurial vision into a Canadian reality, guiding you through the business immigration landscape to secure not only your permanent residence but your future as a Canadian citizen.” – Rakhmad Sobirov, Managing Lawyer
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