Canadian work permit options for entrepreneurs in 2021

Shelby Thevenot
Published: March 7, 2021

Canada has made some policy changes affecting immigration pathways for entrepreneurs.

In recent weeks, Canada announced that the Owner/Operator category under the Temporary Foreign Worker Program (TFWP) will be removed on April 1, 2021. This category allowed applicants to apply for a work permit without having to do the advertising requirement of the Labour Market Impact Assessment (LMIA).

There are also some new instructions affecting Comprehensive Economic and Trade Agreement (CETA) Investors. As of January 1, Canada is not processing U.K. applicants under this program. Instead, they will be processed under the new Canada-UK Trade Continuity Agreement after it is ratified, which is expected to happen early this year. Until then, U.K. applicants will have to be accompanied by an LMIA or meet the eligibility requirements of an LMIA-exempt work permit category.

Here are some of the other options for entrepreneurs who want to start a business in Canada.

Get help with Canadian work permits

Intra-Company Transfer

The Intra-Company Transfer work permit is for entrepreneurs who want to expand an existing foreign business into Canada. This program is usually used by multinational corporations to move management and key staff between international branches, but it can also be an option for entrepreneurs who want to open up shop in Canada.

Through this work permit, business owners can divide their time between managing their current overseas business and opening their Canadian branch, subsidiary, or affiliate.

Some of the basic eligibility criteria are as follows:

  • The new Canadian business must pass a viability test, which can be achieved by providing financial information, evidence that physical premises have been secured, and a business plan that provides for the hire of at least one Canadian during the first year of operation.
  • The foreign company and the Canadian businesses must be related in terms of their ownership structure, which means they must have either a parent-branch, parent-subsidiary, or affiliate relationship.
  • The person being transferred to manage the new Canadian business must have been employed by the foreign business looking to transfer them for at least one year in a similar full-time senior managerial or executive position.

CUSMA Investor

Citizens of the U.S. or Mexico who invest in new or existing businesses in Canada may be eligible to apply for a work permit under the Canada-United-States-Mexico Agreement (CUSMA) Investor program. Eligible investors, majority shareholders, or sole owners can use this program to develop and direct their business from inside Canada.

To apply, the investor must prepare a business plan with details of the total capital required to establish or purchase the business. They also need to show that a significant portion of these funds have already been committed to the project. The business is also expected to generate jobs, or other benefits to the local economy.

CETA Investor

European investors who are eligible for the CETA Investor program can stay in Canada for one year without needing an LMIA.

Investors may be eligible if they are employed, in a supervisory or executive position, by an enterprise that will commit a substantial amount of capital to a Canadian business.

The provisions are similar to CUSMA. Investors need a business plan, significant funds already committed, and the business should benefit the Canadian economy.

Entrepreneurs/self-employed

The Entrepreneurs/self-employed work permit is intended for entrepreneurs who own at least 50 per cent of a seasonal Canadian business. It can also apply in cases where the owner of the Canadian business intends to live outside Canada. In such cases the work permit could be exempt from the need for an LMIA.

These individuals may seek temporary residence, or eventual permanent residence. Applicants must demonstrate that their business will be a significant economic, social, or cultural benefit to Canadians.

Get help with Canadian work permits

© CIC News All Rights Reserved. Visit CanadaVisa.com to discover your Canadian immigration options.

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
CRA to hold webinar for international students
Money and income tax papers litter a surface, in a menagerie of financial ministration.
IRCC to update application fees on December 1
A couple looks to their laptop, credit card in hand, anticipating the online payment of their IRCC fees.
International students in Canada can work 24 hours a week off-campus
A young woman walks while carrying a laptop
IRCC announces temporary measures for those impacted by the conflict in Lebanon
Airplane landing in Canadian airport.
Top Stories
Canada vs. Australia: Which country is the best choice for international students seeking immigration?
CRA to hold webinar for international students
Manitoba announces new pilot pathway to permanent residency
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Provinces
Manitoba announces new pilot pathway to permanent residency
A walkway through a field
Your guide to Ontario’s paid days off in 2025: public holidays and long weekends
An Out-Of-Office post-it stuck on a laptop
British Columbia and Alberta invite PNP candidates
New survey reveals the happiest provinces in Canada
A person holds a cutout of a smiley face in front of their face.
Link copied to clipboard