Entrepreneurs coming to Canada have different work permit options in 2021
Work permits are the first step for foreign entrepreneurs when immigrating to Canada.
Recently, Canada has announced that the Owner/Operator category of the Temporary Foreign Worker Program (TFWP) will be removed on April 1st. This category allowed candidates to apply for a work permit without needing to do the requirements of the Labour Market Impact Assessment (LMIA).
There are also new instructions affecting the Comprehensive Economic and Trade Agreement (CETA) Investors. Canada is no longer processing U.K. applicants under this program as of January 1st. Instead, candidates will be processed under the new Canada-UK Trade Continuity Agreement after it is ratified, which is expected to occur early this year. Until then, candidates will have to complete an LMIA or meet the eligibility requirements of an LMIA-exempt work permit category.
There are four other options for entrepreneurs who want to immigrate to Canada and start a business.
Intra-Company Transfer is a work permit for entrepreneurs who want to expand their existing business from a foreign country into Canada. Typically, this program is used by multinational corporations to move management between international branches. However, the program can also be used as an option for entrepreneurs who want to open another shop in Canada.
Through this work permit, business owners can divide their time between managing their current business overseas and opening a new branch in Canada.
The Canada-United States-Mexico Agreement (CUSMA) Investor Program is for eligible entrepreneurs to apply for a work permit. The program is for citizens of the U.S. or Mexico who want to invest in new or existing business in Canada. Eligible investors can use the program to develop and direct their business from inside of Canada.
CETA Investor Program is for eligible European investors who can stay in Canada for one (1) year without an LMIA. Investors may be eligible if they are employed by an enterprise, in a supervisory or executive position, that will commit a substantial amount of capital to a Canadian business. The requirements are similar to the CUSMA program.
The Entrepreneurs/Self-Employed Work Permit is for entrepreneurs who own at least fifty percent (50%) of a seasonal Canadian business. It can also apply to owners of the Canadian business and plan to live outside of Canada. Depending on the circumstances, candidates could be exempt from needing an LMIA.