International Mobility Program: Canadian interests – Significant benefit – Entrepreneurs/self-employed candidates seeking to operate a business [R205(a) – C11]
As per subsection 22(2) of the Immigration and Refugee Protection Act, applicants who have a dual intent to seek status as temporary workers and then eventually as permanent residents must satisfy the officer that they have the ability and willingness to leave Canada at the end of the temporary period authorized under section 183 of the Immigration and Refugee Protection Regulations. The applicant must be able to demonstrate that they will have the incentive to depart Canada when their work is complete (e.g., operation of a rib stand at a festival) or the business closes.
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Applicants seeking only temporary residence
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”
Questions to consider in determining whether paragraph R205(a) is met (regardless of what percentage of the business in Canada is owned) include but are not limited to the following:
Significant economic, social or cultural benefit
Indicators of “significant benefit” include
Degree of ownership
The issuance of work permits for entrepreneurs should be considered only when the applicant controls at least 50% of the business in question.
Where an individual is a partial owner with a slightly smaller stake and is coming to work in the business, they are required to apply for a work permit as an employee (rather than as an entrepreneur or self-employed person) and may therefore require a Labour Market Impact Assessment (LMIA).
If there are multiple owners, only one owner is generally eligible for a work permit pursuant to paragraph R205(a), unless exceptional circumstances can be demonstrated. While Immigration, Refugees and Citizenship Canada (IRCC) does not want to discourage investment in Canada, these guidelines are intended to prevent the transfer of minority shares solely for the purpose of obtaining a work permit.
A virtual employer-employee relationship, or the appearance of such, is not a true reflection of a business operation. For more information, see Qualifying relationship between the employer and the foreign worker. ESDC has a policy to issue LMIAs for certain owner/operator situations.
Long-term self-employed applicants
Applicants who have repeatedly been issued work permits over several years in the self-employed or entrepreneur category should, in addition to satisfying the indicators of general economic stimulus, be able to provide evidence of the following:
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