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. This article outlines an alternative route for foreign entrepreneurs aiming to secure permanent residency in Canada. Unlike specific business immigration programs, this pathway starts with a work permit and 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, citizenship.
You can always use our free assessment tool to find the best program that suits your situation or schedule a 1-hour strategy meeting 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 Nominee Programs (PNPs) tailored for entrepreneurs, the Self-Employed Program, and pathways that transition from a Work Permit (WP) to permanent residency (PR), including Labour Market Impact Assessments (LMIAs) for business owners.
These programs 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 Canadain Citizenship Through Business Ownership?
Let’s explore each step of the business immigration pathway and how to obtain permanent resident status in Canada through investment and ultimately become Canadian citizens.
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 that generates net profits of $100,000 per year typically costs between $300,00 to $500,000 (net revenue x 3 to 5).
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. |
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 LMIA under the regular stream to work in Canada as managers of their businesses.
- Intra-company transferees (“ICTs”) – work permits for those entrepreneurs who already operate a multi-national company in their home country and have established a new operation in Canada.
- Investors under free-trade agreements – this category of work permits allows 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 – for foreign nationals who intend to operate a business that will generate significant benefits for Canada (C11).
- Start-up visa work permits – for entrepreneurs wishing to establish innovative or highly scalable businesses in Canada.
- PNP Canada programs – though they may be complicated for some foreign investors, they still offer a viable option for work permits.
- Quebec Immigrant Investor Program – this program is ideal for high-net-worth individuals 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 as a foreign worker, you must operate your business usually for a minimum of 12 months before transitioning to permanent residence. The length of operation depends on the type of business you have (i.e. established or new) and your work permit type.
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 months and are actively involved in your enterprise, you might qualify to apply for permanent residence through the Express Entry (EE) program under the Federal Skilled Worker stream. Ownership of an active business in Canada can potentially earn you an additional 200 points for arranged employment in the EE system if your business meets specific requirements.
In general, your business must be active and meet the following requirements:
- Your business is engaged in active sales of goods or services to real customers within Canada or internationally.
- Your business has all the licenses and permits to operate legally in Canada.
- Your business has a physical commercial location in Canada.
- Your business has several local employees.
- As an entrepreneur, your role is focused on executive or senior managerial duties, overseeing the broader scope of the business operations and delegating daily management to middle managers.
- You are making progress toward the execution of your business plan
Additionally, to be eligible for permanent residence through the Express Entry program, you must meet certain criteria, which often include the following:
- A language skills score equivalent to at least Canadian Language Benchmark (CLB) 7
- Possession of a Bachelor’s degree or other post-secondary education credentials
- A clean criminal record and the absence of serious ongoing medical issues
Our Experience with Canadian Business Immigration for PR
“In our practice, we successfully assist approximately 70 business owners each year in transitioning from a work permit to permanent residency using the Express Entry pathway. Although navigating through this pathway can be complex, we have found it to be a viable option for many. Our experience has shown that Immigration, Refugees and Citizenship Canada (IRCC) typically recognizes the claim of 200 points for arranged employment for those who own an active and operational business in Canada. This significant boost in CRS points can greatly enhance applicants’ Express Entry profile, making the pathway from work permit to PR not just theoretical but practical and achievable.” – Feruza Djamalova, Senior Business Immigration Lawyer.
However, there are specific nuances and requirements that must be met to ensure success:
- IRCC will likely challenge your claim of arranged employment if your business operations are based out of your home; commercial premises are a must to validate the genuineness of your business.
- Applicants who try to apply under the Canadian Experience Class (CEC) program within Express Entry while owning and controlling their company in Canada will be refused. This is because self-employment under CEC is not recognized as Canadian work experience.
- Lastly, if your business does not demonstrate a scale of operations, there’s a risk that your job offer may be viewed as not genuine, putting your application at risk.
Understanding these intricacies is crucial in navigating the journey from business ownership to permanent residency in Canada. Read the Success Stories of our Clients or watch our most recent video on Express Entry applications for business owners below.
Frequently Asked Questions About Business Immigration
Below, you will find answers to the most commonly asked questions about Canadian business immigration.
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?
There is no minimum investment amount that you are required to invest to apply for permanent residency in Canada. 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. 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 business immigration, nothing is easy. These golden visa applications, sometimes called in Canada, 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, business immigration applications 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 in-house 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.
- Providing business consulting services to lay a solid foundation for obtaining permanent residence.
- 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.
- 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.
