How Chinese Manufacturer Expanded Her Family Business to Canada: A Business Immigration Success Story.

Canada’s business immigration programs offer a unique opportunity for entrepreneurs and business owners seeking to expand into new markets. This case study highlights the journey of ‘Lily’ (not her real name), a Chinese entrepreneur who navigated the challenges of business immigration to establish her family’s aluminum die-casting company in Canada.

Read on to learn how Lily made it happen, the steps in securing her ICT work permit, the obstacles she overcame, and how Sobirovs helped her expand the business into the North American market.

Business Immigration to Canada as an Expansion Method

• Citizenship: China
• Industry: Aluminum die-casting manufacturing
• Initial Investment Amount: CAD $200,000
• Business Vision: to expand an established family business into the North American market by setting up a Canadian branch to cater to the growing demand for aluminum parts in the electric vehicle industry
• Language Ability: Fluent in English, having completed her postgraduate studies in the UK, Lily was well-equipped to manage cross-border business relationships and navigate the Canadian business environment
• Why Canada? Canada’s allure as a business expansion destination stems from its robust economy, stable political environment, and business-friendly policies. Canada presents a particularly attractive market for businesses in the aluminum die-casting industry, like Lily’s. The country’s thriving automotive sector, especially the electric vehicle ecosystem, creates a high demand for aluminum components. Moreover, Canada’s commitment to sustainability and innovation aligns with the growing focus on lightweight, eco-friendly materials in the automotive sector.

Immigration Program: Intra-Company Transferee (ICT) Work Permit

The ICT Work Permit facilitates the transfer of senior managers and executives to Canadian branches of multinational companies, allowing businesses to bring in key personnel to help grow their Canadian operations. For Lily, this meant setting up the Canadian branch of her family’s aluminum die-casting company.

To succeed, we took the following steps:

• Company Registration: We helped Lily register for the Canadian branch, ensuring compliance with local business laws and regulations.
• Business Plan Development: Our team collaborated with Lily to create a detailed, robust business plan highlighting the potential market for aluminum parts in Canada, particularly within the automotive industry. This was essential to demonstrate the viability of the new business in Canada.
• Proving Significant Benefits to Canada: To qualify for the ICT Work Permit, we needed to show that Lily’s business would bring Canada significant economic and social benefits. It involved collecting evidence such as job creation plans, foreign investment figures, and market research on the demand for aluminum die-casting.
• Application Preparation: We prepared a comprehensive application that emphasized Lily’s managerial experience, the business’s potential to contribute to Canada’s economy, and her temporary purpose in coming to the country.

Outcome: ICT Work Permit Approval in Just One Month

Thanks to the thorough preparation and strategic approach, IRCC approved Lily’s ICT work permit in just one month. This rapid approval allowed her to start business activities without delays and implement her expansion plans.

Issues and Challenges in the ICT Work Permit

Business immigration is rarely straightforward, and Lily’s case was no exception. Here’s a look at some of the challenges we encountered:

Start-Up Challenges:

The Canadian branch was a new company with no prior financial history. We had to demonstrate its potential viability and future success through market research and an effective business model.

Ownership Structure Complexities:

Given that multiple family members owned the Canadian and foreign companies, we needed to carefully document the ownership and control to meet the ICT program’s requirements for an affiliate relationship.

Demonstrating Significant Benefits:

It was essential to provide robust evidence that Lily’s business would positively impact the Canadian economy, from job creation to diversifying the automotive supply chain.

How We Can Help

Canada’s business immigration landscape is constantly evolving, and recent changes to the IRCC’s rules for Intra-Company Transferee (ICT) eligibility have made it more challenging for applicants to qualify under this program. The revised criteria mean that businesses and applicants must now provide:

• Even more robust evidence of their company’s multinational operations.
• The significant economic or social benefits to Canada.
• The qualifying relationship between the Canadian and foreign entities.

If you, like Lily, want to expand your business to Canada and need expert guidance, we can help you navigate these stricter requirements. Our team specializes in assisting entrepreneurs and business executives in meeting the latest eligibility standards, developing solid applications, and ensuring compliance with Canadian immigration regulations.

Please contact us for a consultation with our senior lawyers to discuss how we can help make your Canadian business expansion a reality despite the new challenges.