Business entrepreneur immigration to Canada requires the candidate to open or purchase a business, and then actively manage, a qualifying small business in Canada. Upon satisfying pre-determined conditions, Entrepreneur Visa holders can then become Canadian permanent residents and eventually citizens of the country.
Your innovative ideas, experience and business know-how are invaluable assets that can help you invest in your future with Canada’s post pandemic emerging and diverse economy.
With a wealth of opportunities waiting for experienced, business savvy individuals to help propel the growing Canadian economy, we are ready to help you take the next step.
Guiding you step by step through the immigration process from eligibility to permanent residency, Profile assessment, Documentation services, Document checklists, Business Plan Draft, Market research, IELTS coaching, Net worth assessment, Business exploratory visit assistance, Business acquisition/start up support, Business interviews with incubators, Work Permit application, PR application filing SkilzCanada provides first-class support, so you can get back to focusing on your business.
Whether you are self-employed, are looking to grow, start or buy a business in Canada, to help drive the Canadian economy, there are several Business Immigration Programs designed to fit the skills and experience of successful business persons who want to settle in any province.
Buy/Start a Business and Move to Canada Immigration Program
For many foreign investors, the pathway to Canada is divided in two stages, beginning with a temporary work permit under the federal owner-operator rules. Under this policy the foreign investor can receive a work permit following the sale and transfer to the foreign national, of the majority share ownership of an existing profitable Canadian business.
Once admitted on a work permit, candidates can at a later stage, apply for permanent residency under many immigration programs.
Along with the more elaborate Provincial Entrepreneur Programs, Other practical options for Entrepreneurs include the Intra Company Transferees, Owner Operator and Start-Up Visa categories.
Why is the Owner-Operator Program Attractive to Foreign Investors?
Opportunities under Federal investment-based immigration programs are unfortunately, currently nonexistent in Canada.
Most Provincial investment-based residency immigration programs operate under an ‘expression of interest scheme’. Most candidates begin with a temporary work permit and then apply for permanent residency once approved by the province. These programs operate under quotas and often require candidates to invest a lot of time and money. This leaves a large pool of international investors seeking permanent admission to Canada to compete for a relatively small number of quota-based openings under Canada’s provincial business immigration programs.
On the other hand, under the owner operator category a motivated foreign investor-entrepreneur, can purchase or launch a suitable business and relocate to a province or territory of choice before permanent residency is granted. This is far more advantageous than trying to meet provincial immigration program requirements in areas of Canada that are not desirable.
Revised federal policies governing new business owners under the Temporary Foreign Worker (TFW) program is gaining considerable attention. After a period of less than 1-year, successful temporary work visa holders can transition to permanent residence under a provincial program or as a Federal skilled worker under Express Entry.
Although the burden of proof can be onerous, the issuance of a positive LMIA and work permit to a foreign national, after the transfer of ownership of a successful Canadian business, is feasible. Above all, the project must be genuine and carried out with the foregoing considerations.
The rules are complex but navigable. A foreign employee-investor can create a new business, acquire an existing Canadian business, or invest substantially in an enterprise and qualify for a work permit as a TFW. The acquisition of the business by the foreign national must, among other conditions, result in the creation or retention of Canadian jobs and there must be a transfer of knowledge or expertise to Canadians.
Where the foreign employee-investor acquires or intends to acquire 100% or substantial interest of an existing Canadian business, the following considerations will apply for the assessment of an LMIA. (Labour Market Impact Assessment)
1) Complete Purchases
Where a 100% purchase has been completed and documentary evidence is provided (share purchase agreement, share certificate, notice of articles, central securities register, CRA#, reflecting purchase/ownership change application, the burden of proof is less onerous. However, the requirement on creation or retention of Canadian jobs and knowledge transfer to Canadians in the form of a transition plan, still needs to be satisfied.
The new owner as employer, will apply for a Labour Market Impact Assessment (LMIA), to support an owner-operator management-based work visa.
2) Pending Complete Purchases
Where the transaction is pending, and contingent on an LMIA and WP, immigration authorities will broadly assess if the anticipatory project is genuine. Key factors include how advanced the transaction is, (signed share purchase agreement, monies in escrow), how sound the foreign employee-investor’s business plan to acquire 100% ownership in the shares of the business as principal owner is and whether the intent to hire or retain Canadian workers can be established.
The existing or incoming owner as employer, will apply for a Labour Market Impact Assessment (LMIA).
The existing owner could also submit the LMIA to hire the foreign employee-investor into a specific management position in the business, in which case the usual program requirements will apply. Once the purchase takes place in the future, the new owner as employer will submit a new LMIA to support an owner operator management-based work visa.
3) Partial Purchases
Where the transaction is pending and contingent on an LMIA and WP, once again immigration authorities will broadly assess if the anticipatory project is genuine. Key factors include how advanced the transaction is, (signed share purchase agreement, monies in escrow), how sound the foreign employee investor’s business plan to acquire a substantial ownership in the shares of the business as principal owner or co-owner is, what percentage of the business is being transferred and whether the intent to hire or retain Canadian workers can be established.
Other considerations here include establishing who owns the largest part of the business, and whether existing shareholders will continue to play an active role. Depending on this assessment, the foreign national may be treated as a new management employee. In such instance, an evaluation on the prognosis of continuing employment is required. The business must have enough profitability in the form of retained earnings, to incur the salary of the foreign employee-investor, without taking into consideration, the injection of new capital into the business. The structure of the overall commercial transaction and the role the new employee will take on, is paramount to this determination.
Where the foreign investor plans to start a new business that is contingent on a positive LMIA and work permit, the business should be in “operation”, providing goods or services. The following considerations will apply for the assessment of an LMIA under the Owner-Operator guidelines:
- Preparation efforts made towards opening the business (incorporating the business, applying for business licenses, executing a lease agreement, securing new contracts, etc.).
- The presence of a viable business plan.
- Hiring intentions: whether the company intends to hire Canadians/permanent residents.
- Role of foreign-employee investor to become sole owner and actively engaged and carry out anticipatory work on behalf of the business as a TFW.
What is the Owner-Operator Program?
- The latest rules governing new business owners under the TFW program is gaining considerable local and international attention to many foreign business entrepreneurs and investors.
- The TFW program is a suitable vehicle to facilitate the admission to Canada of a foreign business owner, following the purchase of a Canadian business or the launch of a new business entity.
- Both the owner-operator and ICT programs are not a formal immigration program. Rather, it is a ‘work permit’ issued under the federal Temporary Foreign Worker Program (TFWP). There is no annual quota on the number of work-permits that can be issued.
How Is an Owner-Operator Defined?
- First and foremost, an employer must be an entity (person, business, corporation or organization) that makes an offer of employment to a foreign national to perform work for compensation, and for an identifiable term, in Canada. The employer is generally the entity that hires, controls working conditions and remunerates the foreign national. It must be an identifiable entity that will enable government authorities the necessary scope to fulfill its regulatory responsibilities with regards to the administration and enforcement of the Temporary Foreign Worker TFW Program.
- To qualify as an owner-operator the foreign employee-investor should be able to establish a level of controlling interest in the business (e.g. a majority or plurality of shares, is not able to be fired) and be actively involved in its operation. Foreigners who do not meet this definition would not qualify for the program exemptions under owner-operator.
- In all instances, the transaction must be genuine. To meet such determination, the offer must be made by a foreign employee-investor that will be actively engaged in the management of the business. This will be assessed by reviewing the foreign national’s intention to operate the business as well as prior experience in managing or operating a business.
Who is an ideal candidate? To qualify as an owner-operator, the foreign investor must have:
- Verifiable, transferable management experience.
- Sufficient funds/assets to purchase or start the targeted business in Canada.
- Sufficient language abilities in either English or French to actively work as a manager in the business.
- Controlling interest in the business: own more than 50% of the shares and cannot be dismissed
Ownership of shares does not by itself guarantee that a foreign national qualifies as an owner-operator. The offer of employment must be made to a foreign investor that will be actively engaged in the management of the business. This will be assessed by reviewing the foreign national’s intention to operate the business as well as prior experience in managing or operating a business. What is the process?
- The foreign investor identifies a Canadian business to purchase or start.
- A Labour Market Impact Assessment (LMIA) is submitted along with a suitable business plan.
- Once a positive LMIA opinion is issued, the foreign investor applies for a 12-24 months, renewable temporary work permit at the management level.
How long does this process take?
Once a suitable business is found, it will take 4 to 5 months to complete the LMIA application process. It will take approximately four months in most jurisdictions to receive a work permit.
When can the work permit holder apply for Canadian permanent residence?
There is no minimum wait time for owner operator category and a period of 12 months for the ICT program. During the first year of working in Canada, the foreign investor along with immediate family members can apply for permanent residence if they qualify under a suitable program, either the federal Express Entry or a provincial nomination program. In most cases, the process can be completed in less than 12 months.
The Labour Market Impact Assessment.
In general, to obtain a work permit, a Labour Market Impact Assessment (LMIA) must first be conducted and approved by Human Resources Canada. As part of the LMIA process, Canadian employers must demonstrate that employing a foreign worker will have a positive or neutral impact on the Canadian labour market, and that there is currently no Canadian citizen or permanent resident available to fill the position, which is typically done by advertising the position on several venues. Because of the reluctance to hire a foreigner for a position that could presumably be performed by a Canadian citizen or permanent resident, these applications are heavily scrutinized and are often refused if they do not conform precisely with requirements set forth by the government.
However, majority business owners (over 50% ownership) may be eligible for a work permit under the Owner/Operator stream, and as such, exempt from the advertising requirements of the LMIA. This facilitates the process greatly, as this is usually the most difficult hurdle of a LMIA and its ancillary work permit application.
The main purpose of this LMIA stream is to provide a facilitated route through which foreign nationals can enter Canada to run their business. Quite understandably, most business owners are protective of their company and are adamant about personally overseeing its operation to ensure it is running according to their specifications. If entrepreneurs had to surrender the helm of their Canadian company due to a lengthy and convoluted work permit application process, most of them would look elsewhere to start or expand their business. Fortunately, the government of Canada understands this and has had the foresight effectively address these concerns with the Owner/Operator LMIA stream.
In all cases, the LMIA is a regulatory tool used by authorities under the Immigration and Refugee Protection Regulations to determine if a Canadian exists to perform a specific job. A positive LMIA allows an employer to bring in a foreign worker, whether on a temporary or permanent basis. Where the Owner-Operator provisions apply, the requirement to advertise the position to the Canadian labour market, is specifically exempted. And in the case of ICT (Intra Company Transfers) not required at all.
When assessing labour market factors, for owner operator LMIAs, the focus is first and foremost on the genuineness of the job offer and on job creation or retention and/or skills transfer. The employer pursuant to a well documented transition plan, must demonstrate a level of controlling interest in the business. In most instances, this should be in the form of being the sole proprietor or a majority shareholder. The employer should also be able to demonstrate that such a temporary entry will result in the creation or retention of employment opportunities for Canadians and permanent residents and/or skills transfer to Canadians and permanent residents.
The new owner will in all instances where the reasonable employment needs of the business demands, be required to demonstrate effective communication skills, either personally or through a hired translator-employee, to ensure the continuity of the existing business and the prognosis for effective skills transfer. The intending applicant for an LMIA, in such instances, is advised to include language proficiency with the application in the form of a valid IELTS language test with a CLB of 5.0 in each of the 4 components. In some instances, language requirements can be overcome, where the employer can demonstrate that use of non-official language is a bona fide occupational requirement.
Become a Business Owner-Operator to Canada: Readers interested in relocating to Canada under this program are invited to contact elias@skilzcanada.com
Start-up Visa Program Canada
The Start-up Visa Program aims to attract immigrant entrepreneurs who are willing to move to Canada and have the potential to create jobs and offer ‘innovative’ products and services without a personal investment. Applicants under the program are free to settle in any province in Canada, except for Quebec.
One huge advantage is that Unlike other entrepreneurial programs for the Start-Up Visa, Permanent Residency is not hinged on the success or performance of the business if you are eligible to qualify for it.
Eligibility Criteria
There are certain eligibility criteria to meet to qualify under the Start-up Visa program. Applicants are asked to show proof of support of a ‘designated’ business incubator, angel investor group, or venture capital fund.
Examples of designated angel investor groups include TenX Angel Investors, Oak Mason Investors, and Angel One Network.
The list of designated venture capital funds includes organizations such as Westcap Mgt., Version One Ventures, Golden Opportunities Fund, and others.
Finally, there are designated business incubators such as ‘Empowered Start-Ups’ with whom SkilzCanada is strongly associated with.
Pathway for Entrepreneurs to PR
To qualify, applicants are asked to show a letter of support from either the designated Venture Capital firm, Angel Investor, or Incubator/Accelerator. Those who meet the ownership criteria qualify under the Start-up Visa Program. This means that more than 50 percent of the voting rights are jointly held by the business and designated incubator, angel investor group, or venture capital fund. Applicants with 10 percent of the voting rights meet the eligibility criteria. The minimum investment depends on the source, whether it is a business incubator (none), angel investor group ($75,000), or venture capital fund ($200,000). Finally, there are language requirements as well. CLB 5 in French or English is required in areas such as writing, listening, reading, and speaking.
If you do not have any connections to designated Venture Capital firms or Angel investors and your team is in the process of building a company, a Start-Up incubator/accelerator program is a good option for you to consider.
One of the reasons for the difficulty in securing capital from VC’s and Angel investors is that securing funding for your company as a new immigrant (wherever you are located) is not an easy feat. It takes time to find the right investor for your company and then you have to convince that investor that you are the team to back and that You and Your team have what it takes to pull it off and build a very successful company. This is even harder if you do not have a warm intro to a VC or angel investor, and many immigrant entrepreneurs have not yet had a chance to make those connections in Canada yet.
Whether you have connections or are just starting out, you may want to consider an approved Canadian incubator/accelerator over a Venture Capital firm or Angel Investor.
Accelerators (like good investors) are always looking for the best talent/companies and most accept applications from entrepreneurs around the world. Really good Start-Up accelerators can help you build on your idea and connect you with the right mentors, investors, and partners to help you be successful. SkilzCanada Immigration works closely with the most successful Accelerator in Canada to date.
Applicants must pass all medical and security clearances to settle in Canada. U.S. citizens and residents are asked to present an FBI Police Clearance as well as a State Police Clearance Certificate. Applicants for permanent residence are also asked to contact a panel physician and pass a medical exam. In some cases, panel physicians recommend laboratory tests and x-rays. All applicants are asked to bring certain documents, including a Medical Report Form and an ID card, driver’s license, or passport. Those who have existing medical conditions must bring relevant test results and medical reports.
Eligibility and Financial Criteria
Obviously, it is important to bring enough money, and the amount varies depending on the number of family members. Thus, the amount required for 7 family members is $33,014 while the amount for 3 family members is $19,093. A family of 4 must have a total of $23,181. Applicants who plan to bring more than $10,000 must inform the authorities upon arrival, whether bringing travellers’ cheques, cheques, bankers’ drafts, or cash. The same goes for treasury bills, debentures, bonds, stocks, and other securities. In some countries, there is a limit on the amount of money citizens can take abroad. It pays to ask a finance advisor, bank representative, or lawyer. Applicants who plan to move to Canada as self-employed persons are asked to show proof of funds.
It is also a good idea to take household and daily expenses into account. Household expenses include things like mortgage or rent, utility bills, gas or public transportation, health insurance, food, and so on. The standard of living in the applicant’s home country is often different than in Canada.
PROVINCIAL NOMINEE PROGRAM PNP BUSINESS ENTREPRENEUR INVESTOR IMMIGRATION
Business owners or those who have senior management experience may want to consider the Provincial Nominee Program (PNP) Business Entrepreneur Immigration streams offering Canadian Permanent Residency by investing as little as $150,000 in an eligible business in Canada.
Comparative chart of some of the various Provincial business immigration programs.
| BUSINESS PATHWAYS | MINIMUM INVESTMENT | MINIMUM NET WORTH | PROCESSING TIME |
| Canada Start Up Visa | No minimum investment required: Incubator/Accelerator (Mentorship Fees) CAD 200,000 – Canadian Venture Capital Fund CAD 75,000 – Angel Investor Group | Not Required | 12-24 months |
| Owner Operator Program | CAD From 100K Approx | CAD 1 Million | 6-9 months |
| Quebec Immigrant Investor Program (Currently Suspended) | CAD 1,200,000 | CAD 2,000,000 | 48-60 months |
| Quebec Entrepreneur Program | CAD 300,000 for a business in Montreal or CAD 200,00 for a business outside of Montreal | CAD 900,000 | 12-46 months |
| Ontario (OINP) Entrepreneur Stream | CAD 600,000 for the business in the Greater Toronto Area CAD 200,000 for the business outside Greater Toronto Area | CAD 800,000 for the business in the Greater Toronto Area CAD 400,000 for the business outside Greater Toronto Area | Depends on complexity of application |
| Manitoba PNP (Entrepreneur Program) | CAD 250,000 for the business in the Manitoba Capital Region. CAD 150,000 for the | CAD 500,000 | 12-15 Months |
| British Columbia PNP Entrepreneur Program British Columbia Regional Pilot Program | CAD 200,000 for business in BC CAD 400,000 for proposing a Key Staff Member in the Business CAD 100,000 in British Columbia Areas | CAD 600, 000 CAD 300,000 | 12-15 Months 12-15 months |
| Nova Scotia PNP (Entrepreneur Category) | CAD 150,000 | CAD 600,000 | 12-15 months |
| Prince Edward Island PNP (Business Impact Category) | CAD 150,000 | CAD 600,000 | 12-15 months |
| Saskatchewan PNP (Entrepreneur Category) | CAD 300,000 for business in Regina or Saskatoon CAD 200,000 for business in any other Saskatchewan community | CAD 500,000 | 12-15 months |
Steps to Apply
The current Provincial Business Investor Stream steps to apply are:
- Self-assessment: Ensure you meet the minimum requirements to apply.
- Research Business Concept: Your Business Concept (or plan) is crucial to having a successful application. A Business Research Visit is conducted in the Province you are exploring, where our office arranges an itinerary for you with meetings scheduled, seminars booked and a tour guide. This is an important step in the process as it is when you determine the type of business you wish to start up or purchase.
- Submit Expression of Interest: We submit your Business Concept Form, your Self-Assessment Form and Code of Conduct for Immigration Representatives.
- If you do meet stream requirements, they will review your business concept and determine whether you can move forward to the next step
- If yes, the province will issue a Business Concept Code for you to proceed
- If no, you will be informed of the reasons why and will need to wait a minimum of 2 months before submitting a new Business Concept with additional research or changes.
- If you do meet stream requirements, they will review your business concept and determine whether you can move forward to the next step
- Submit Full Application: You will be sent a Letter of Advice to Apply (LAA), and we will have 120 days to submit a complete application to the Province with a $2,500 processing fee.
- Application Assessment: The province will assess your application and invite you to an interview to discuss your Business Plan. If approved, you must sign a Business Performance Agreement (BPA). The Province will then provide a Letter of Support to include with your Temporary Work Permit application to Immigration, Refugees and Citizenship Canada (IRCC).
- Operating Your Business: While you are holding a Work Permit you will be meeting the conditions of your BPA and providing progress reports to the Province.
- Receive Provincial Nomination: Once the Province verifies you have successfully fulfilled the conditions of your BPA, you will be issued you a Certificate of Nomination. Now, you may apply for a Permanent Resident Visa to IRCC.
Are You Interested in Investing in the PNP Entrepreneur program?Those interested in relocating to Canada under this program are invited to contact elias@skilzcanada.com
Applying as a Business “Visitor”
A business visitor is an individual coming temporarily to Canada with the purpose of engaging in international business activities, without directly entering the Canadian labour market. For example, a business visitor would be someone who comes to Canada to meet Canadian clients doing business with his or her company based outside of Canada. This will only be applicable if you intend to:
Look for ways to grow your business. invest; or advance your business relationships.Visitors may come to Canada to observe site visits. Alternatively, a Canadian company may have invited them to Canada for training in product use, sales or other functions related to a business transaction. As a business visitor, you must show that: You plan to stay for less than six months. You do not plan to enter the Canadian labour market. Your main place of business, and source of income and profits, is outside Canada. You have documents that support your application. You meet Canada’s basic entry requirements with a valid travel document, such as a passport: You have enough money for your stay and to return home. You plan to leave Canada at the end of your visit; and You are not a criminal, security, or health risk to Canadians
As a business visitor, you will be able to travel anywhere in Canada, while visiting family, friends and enjoying the best attractions along the way. You will also be able to attend any conferences, trade shows and meetings with new clients. If you are looking to come to Canada on business, we make applying for your visa simple and worry-free. Let us guide you through the application process, giving you more time to concentrate on your business.
Contact us today to begin your initial assessment.
How can skilzcanada.com help?
Through our established network of licensed professionals, we can help foreign investor-entrepreneurs to identify suitable businesses for purchase or help launch a subsidiary or consider a new business in Canada.
With a dedicated division for business immigration, backed by specialists, counselors, trained documentation experts and industry experience, SkilzCanada provides top notch services in these areas below.
Profile assessment, Documentation services, Document checklists, Business Plan Draft, Market research, IELTS coaching, Net worth assessment, Business exploratory visit assistance, Business acquisition/start up support, Business interviews with incubators and Accelerators, Work Permit application, PR application filing/.
SkilzCanada will help you find accurate, credible, and constructive answers and solutions to dealing with Canadian Immigration and Citizenship processes and procedures. SkilzCanada is positioned to ensure that you will be represented by an experienced competent professional that is specialized in your area of concern.
Contact us today to begin your initial assessment.