Canadian Work Permits for Entrepreneurs

As a cross-border immigration lawyer based in Windsor, Ontario, Christina Loebach helps individuals seeking to obtain Canadian work permits. This blog post considers Canadian work permits that may be available to entrepreneurs or self-employed individuals who are interested in starting a business in Canada.

Work Authorization Required

In most cases, a person who is not a Canadian citizen or permanent resident will require a work permit in order to start and operate a business in Canada. Some potential work permit pathways may include:

• C11 - Entrepreneurs or Self-Employed Business Owners

• T35 / T34 - CUSMA Investors or Traders

• C61 / C62 / C63 - Intracompany Transfers

A brief description of these options is provided below.

C11 - Entrepreneurs or Self-Employed Business Owners

This LMIA-exempt work permit provides a pathway for entrepreneurs and self-employed individuals to establish or operate a business in Canada that contributes to the Canadian economy. In order to qualify:

• The applicant must own at least 51% of a Canadian business;

• The business must create a clear economic, cultural, or social benefit to Canada;

• The business must be ready (or nearly ready) to start operations;

• The applicant must have funds to support themself and their family in Canada;

• The applicant must have relevant experience in the business sector they are entering; and

• They must have an exit strategy and the ability to leave Canada.

There is no specific investment amount required, but the applicant must demonstrate that they have enough capital to start and sustain the proposed business.

T35 - CUSMA Investors

This LMIA-exempt work permit provides a pathway for citizens of the United States or Mexico to come to Canada in order to develop and direct the operations of an enterprise in Canada in which they have invested or are actively investing a substantial amount. In many ways, this work permit is Canada’s version of the E-2 visa. In order to qualify:

• The applicant must hold citizenship from U.S. or Mexico;

• The business in which the applicant invests in must also have U.S. or Mexican nationality, meaning that U.S. or Mexican citizens must own at least 50% of the enterprise;

• The applicant must have invested or is actively investing a substantial amount of capital;

• The applicant must enter Canada solely to develop and direct the business. This means that the applicant must have a controlling interest in enterprise, typically holding an executive or supervisory position;

• The applicant’s position must be executive, supervisory, or involve essential skills; and

• The applicant must comply with all Canadian immigration regulations, including temporary intent.

T34 - CUSMA Trader

The CUSMA Trader work permit is an LMIA-exempt work permit that facilitates entry to Canada for U.S. or Mexican citizens who intend to engage in substantial trade of goods or services between Canada and the home country (U.S. or Mexico). This work permit is very similar to the U.S. E-1 visa. In order to qualify:

• The applicant must hold U.S. or Mexican citizenship;

• The employing enterprise has U.S. or Mexican nationality;

• The activities involve substantial trade in goods or services. To constitute trade, you must be able to prove that there is an exchange of goods or services for consideration flowing through the two countries;

• The trade is principally between either the U.S. or Mexico (at least 50%);

• The applicant’s position must be executive, supervisory, or involve essential skills; and

• The applicant must comply with all Canadian immigration regulations, including temporary intent.

C61, C62, and C63 - Intracompany Transfers

An Intracompany transfer (ICT) is an immigration pathway under the International Mobility Program that allows qualified foreign business owners to transfer their business to Canada and acquire a work permit. The ICT is available to managers, executives, specialized knowledge workers, and employees transferring to a start-up. In order to qualify:

• The home company (i.e. non-Canadian company) must be financially sound and capable of supporting foreign operations in Canada;

• The applicant must be working/engaged with the home company for at least 12 months in the past three years prior to the immigration application;

• The applicant must be transferring to a similar role (same NOC);

• The home company must be related to the company in Canada as a parent, subsidiary, or affiliate company; and

• The Canadian operations will be a viable enterprise and result in job creation for Canadians.

If this application is for the foreign company’s initial expansion into Canada, new rules require that multinational companies have operations in at least two (2) countries before expanding to Canada. Essentially, the business must already be a multinational company - it cannot rely on its expansion to Canada to become a multinational company.

For start-ups in particular, they must also provide a sound business plan that demonstrates that the Canadian operations will be a viable enterprise and can generate sufficient revenue to cover its costs and compensate its employees. Immigration officers will be looking closely at whether this expansion into Canada will result in job creation for Canadians, and whether the company will be large enough to require an executive or manager in Canada.

If you would like Christina to provide legal advice on work permit options that are tailored to your situation, please schedule a consultation.