Business Immigration Canada: Permanent Residence & Citizenship for Foreign Entrepreneurs.

Can I Start a Business in Canada Without PR? A Guide for Foreign Entrepreneurs

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 quicker 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.

What is Business Immigration in Canada?

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.

How to Obtain Canadian Citizenship Through Business Ownership?

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.

Step 1: Buy or Start a Business in Canada

There are four ways foreign investors can invest in Canadian business:

• Starting a new business
• Buying an established business
• Buying shares in an established business (at least 33% or more)
• Buying a franchise

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.

Step 2: Apply for a Work Permit

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:

• LMIA-based work permits – Although owner-operator LMIAs are no longer exempt from advertising requirements, business owners can still apply and obtain LMIAs under the regular stream to work in Canada as managers of their businesses.
• Intra-company transferees (“ICTs”) – These are work permits for entrepreneurs who already operate a multi-national corporation and have established a new operation in Canada. Foreign business owners can also benefit from this work permit by transfering themselves, their key management team and specialized workers to Canada.
• Investors under free-trade agreements – This category of work permits allows foreign entrepreneurs who are citizens of certain countries, including Mexico, Chile, Colombia, the USA, the EU, South Korea, Panama, Peru, Vietnam, Australia, New Zealand, Japan, and Singapore to apply to come to Canada as business investors.
• Entrepreneur work permits – These work permits are for foreign nationals who intend to operate a business that will generate significant benefits for Canada (C10 and C11 Work Permits).
• Start-up visa work permits  – The SUV Work Permits are for foreign entrepreneurs wishing to establish innovative or highly scalable businesses in Canada.
• PNP Canada programs – The Provincial Nominee Programs for entrepreneurs may be complicated for some foreign investors and entrepreneurs, but they still offer a viable option for work permits and permanent residence as a final goal.
• Quebec Immigrant Investor Program – This program is ideal for high-net-worth individuals who speak French and looking to gain a work permit in Canada and eventually permanent residence.

Step 3: Come to Canada to Operate Your Business

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.

Step 4: Apply for Permanent Residence as a Business Owner

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.

Our Experience with Canadian Business Immigration for PR

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 aquiring a business in Canada.

Frequently Asked Questions About Business Immigration

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.

Can I buy Canadian citizenship?

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.

How much should I invest to get a PR in Canada?

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.

How long does it take to get an “investor visa” in Canada?

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.

What is Startup Visa Canada?

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 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.

Can I start a business in Canada without PR?

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.

Can I get an investor visa easily?

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.

What type of business should I buy for immigration to Canada?

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.

How We Can Help You

At Sobirovs Law Firm, we specialize in supporting entrepreneurs looking to invest in or start a business in Canada. Our services include:

• Assisting entrepreneurs and investors in finding the right business opportunities. We have access to numerous promising projects through business brokers, venture capital funds, existing business owners, and companies looking to sell in Canada.
• Crafting market entry strategies and developing robust business plans. Our team of lawyers and external professionals collaborates to refine business ideas and perform thorough market analysis.
• Offering comprehensive support in company registration, negotiating business purchases, conducting due diligence, and other essential steps to facilitate a smooth entry into the Canadian market. Understanding both federal and provincial tax laws in Canada is crucial for compliance when filing tax returns and managing corporate taxes.
• Providing business consulting services to lay a solid foundation for obtaining permanent residence. If PR is your ultimate immigration objective, then thorough strategy-building is needed from the beginning.
• Offering full support with the application processes for work permits and permanent residency, guiding entrepreneurs through each step to ensure a successful transition.

Why Choose Us?

• We care about you, your family and your success in Canada. We want to help you achieve your goal because we believe Canada will benefit greatly if you come to our country. We simplified the process for you and tried to remove all the hassles and stress (as much as possible) from your immigration journey.
• Trust our expertise. Business immigration is our business, and we specialize in all types of business immigration applications. We process over 150 business investment applications annually and have developed expertise in this type of application. Our approval rates are consistently over 80%, reflecting our dedication to the quality of our legal services. Our expertise can help you establish a successful business in Canada.
• We will support you throughout the journey and take care of all the moving parts and complexities of immigration so you don’t have to think about it. Just focus on your business and become successful in Canada.
• We read many books about business and entrepreneurship, take courses, and attend seminars so we can add value to your business, suggest ideas, and help you see what is possible. We invest in our knowledge for you.

Book your one-hour strategy meeting with our experienced immigration lawyers today to discuss your immigration options.