Entrepreneurship in Canada

This pathway is suitable for foreign nationals who want to work in Canada to become permanent residents and settle there as business owners and operators. In this pathway, a foreign national must have a controlling share (50.1 % minimum) in an existing Canadian business or launch and run their own business. Also, they may need a positive Labour Market Impact Assessment from Employment and Social Development Canada before applying for a work permit.

The entrepreneurship pathway is the greatest method for three types of people who intend to become permanent residents of Canada:

• Foreign nationals have businesses in their home or other countries and are looking to establish and run their business in Canada.
• Foreign nationals who have skills, experience, and financial capability to establish and run a new business in Canada and be qualified for employer-specific work permits
• Foreign nationals who have skills, experience, and financial capability to purchase and run an existing business in Canada and be qualified for employer-specific work permits.

Requirements for entrepreneurship pathway:

  Job Creation

Your business plan must clarify how it will create jobs for Canadians, as you have to plan to hire Canadian citizens or permanent residents. In some cases, the business shall be running before you apply for the work permit.

  Business Ownership

You have to have a minimum of 50.1% ownership of a business in Canada as you shall incorporate your company in Canada and obtain the business and tax number.

  Investment Commitment

Although there is no minimum investment commitment for entrepreneurship applications, the entrepreneurs shall have the appropriate financial ability.

  NOC 00

To be eligible to gain 200 points in Express Entry, the business must create a job in NOC 00 for the owner and meet NOC median wage.
With a positive O/O LMIA, you may be eligible to apply for a work permit. After one year of working in NOC 00, you can get 200 points for express entry. Note that for express entry eligibility, CLB7 is mandatory.
According to new changes, entrepreneurs who shall apply for an LMIA are not exempted from advertising requirements.

International Mobility Program

Investors and Entrpreneurs, who are eligible under the International Mobility Program, are exempted from having LMIA and can directly apply for their work permits.

Foreign nationals applying to work for themselves or to operate their own business on a temporary basis must demonstrate that their admission to Canada to operate their business would generate significant economic, social, or cultural benefits or opportunities for Canadian citizens or permanent residents pursuant to paragraph R205(a). Benefits to Canadian clients of a self-employed worker may be considered in this case, particularly if the worker is providing a unique service. If the applicant intends to start or buy a business and eventually stay in Canada on a permanent basis, officers should encourage the applicant to apply for permanent residence.

Factors in considering “significant benefit”

• Is the work likely to create a viable business that will benefit Canadian or permanent resident workers or provide economic stimulus?
• Does the applicant have a particular background or skills that will improve the viability of the business?
• Is there a business plan that clearly shows that the applicant has taken steps to initiate their business?
• Has the applicant taken some measure to put the business plan in action (showing evidence of having the financial ability to begin the business and pay expenditures, renting space, having a staffing plan, obtaining a business number, showing ownership documents or agreements, etc.)?

Significant economic, social or cultural benefit

Indicators of “significant benefit” include

• general economic stimulus (such as job creation, development in a regional or remote setting or expansion of export markets for Canadian products and services);
• advancement of the Canadian industry (such as technological development, product or service innovation or differentiation or opportunities for improving the skills of Canadians).

Treaty Investor for Owner Operator :

People from all European countries, including the UK, US, Mexico, Chile, Peru, Colombia, Panama, Vietnam, South Korea, Japan, Australia, and NewZealand may directly apply for their Owner-Operator work permit, but
There are some requirements as follows:
– There is no need to get an LMIA for treaty investors.
– They have to plan for a minimum investment of at least $200,000
– They must show the source of their funds.
– They may bring additional people to work in business if the business is big enough.
– After 12 months on a work permit, they may be eligible to receive 200 points for express entry. If their business is big enough, it may lead them to apply for permanent residency through express entry. It is the fastest way to become a permanent resident.
Owner Operator could be a suitable pathway for Entrepreneurs, Business Managers, Project Managers, Engineers, Lawyers, Business Owners, Doctors, Surgeons, or Innovative People who intend to start and run a business in Canada.