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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.
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.
Temporary visas grant temporary authorization to enter and work in the country. 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.
A permanent resident visa, in contrast, allows you to obtain permanent status in Canada so you can work permanently in Canada. These visas are a good option for entrepreneurs who want to settle in Canada in the long term and ultimately gain Canadian citizenship. It is important to have a strong and viable business idea to increase the chances of success in your application.
So, here are the top 3 ways for business people to quickly enter the Canadian market.
Important conditions for this type of visa include incorporation of a Canadian company, securement of office space (can be a lawyerʼs office), and a detailed business plan including financial forecasts and a personnel proposal. 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.
An important condition of an ICT visa is that the business must be active and operational within one year. While this will vary somewhat by company, it usually means hiring at least one new employee and having an office. The company may also be required to show that it is fulfilling contract orders, holding inventory, having a revenue stream, etc.
Summary of the ICT Program:
Who is Eligible:
Business owners (or Managers/ key workers) who have been working in a foreign company for at least 12 months prior to the application.
Program Requirements
Establish a company in Canada. The Canadian company and the foreign company must be owned or controlled by the same person (s). The Immigration and Refugee Protection Act (IRPA) impacts business operations, specifically in relation to human resource planning and potential liability.
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 to show at a minimum around CAD$100,000).
Required Documents
Foreign companyʼs registration & ownership documents; Proof of active engagement in business for the foreign company (e.g. tax payments; bank statements; financial statements; licenses, permits & office lease; insurance/wage payments for employees, marketing material, contracts etc.); Applicantʼs personal documents (educational diplomas, employment letters, passport, marriage certificate, passport photo, bank statement, proof of ownership of the company or proof of working for the foreign company in a managerial capacity); A business plan for the Canadian company (can be provided by a lawyer in Canada).
The Validity of the Initial Visa
1-year (for start-ups) work permit; 2 years of work permit for established companies.
Conditions for Visa Renewal
Within the first year, the Canadian company must secure an office and hire at least 1 employee (Canadian citizen or permanent resident). The business must be operational (no profits are required)
Family Members
Family members can join the main applicant. The spouse may get an open work permit and children may get study permits. 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, 1– 3 months (depending on the documents collection)
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 & permits (for the whole family of the business person); Around $25,000 ($30,000 with the Canadian director services) in legal fees to apply for the initial visas & permits (for the whole family of the business person); Around $50,000 – minimum set up & 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.
Important factors for this type of work visa are the 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.
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. or with evidence of public recognition, for example, 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 it has become a viable option for accomplished businessmen.
Summary of the 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).
Required Documents
Foreign companyʼs 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 towards 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 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, 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 & permits (for the whole family of the business person); Around $50,000 – minimum set up & 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.
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.
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.
This is a two-step application. 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.
Summary of the 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 maintain 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
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 & permits (for the whole family of the business person); Around $150,000 – minimum set up & 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.
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.
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