Category: Global Talent Stream

Business Pathways: Buying or Setting Up a Business in Canada

27/9/2018

An entrepreneur is a person who organizes and operates a business, taking on financial risks in the hope of profit. Entrepreneurs are an important part the fabric of Canada's economy, creating and growing businesses that, at the very least, provide us with products and services and create employment.

Until 2014, Canada had a federal “Entrepreneur” immigration program that granted permanent residence to applicants on the condition that after immigrating they would buy or set up a business in Canada. There were great benefits from the businesses created under the program but monitoring the businesses was very difficult and it often took up to 5 or 6 years for applications to be approved.

However, the demand for those wanting to buy or set up a business in Canada has not changed since the program was cancelled. I am approached regularly by applicants, often business owners and managers, who want to relocate their business or buy a business in Canada because of the market opportunities they have identified in Canada. The good news is that there are visa and immigration options available for those interested in buying or setting up a business in Canada.

Under certain conditions you may qualify to obtain a work permit to buy or set up a business in Canada. The first step is that you must find an acceptable, active business opportunity. There is no list of “acceptable” businesses but the business should be a genuine business, it should be financially viable and it should be logical that given your experience and training you will be able to manage the business when you obtain your work permit. The minimum investment required for the business will be determined on a case by case basis depending on factors such as the type of business you are acquiring, the investment required to achieve the business goals, and where the business is located.

As with any other business transaction you will need a team of experts to assist you in your purchase of the business including a business lawyer to negotiate and finalize the business purchase agreements, you may require a real estate lawyer if there is a property that is part of the business, and you should also have an accountant to review the financial documents of the business and advise with regards to tax planning and related matters.

After you have the business in place and the necessary approvals, the final and critical step is to obtain a work visa to work for your own business. While you may own shares of a business in Canada without a work permit or being a permanent resident, you cannot work for the company until you have a work visa. The application for your work visa is extremely important as the officer will carefully review your application to determine if you will be able to manage the business in Canada. Further, since a work visa is a temporary visa, the officer will look at important factors such as your ties to your home country and your financial ability to pay for your investment in determining whether you will receive a work visa.

Once you receive your work visa you will be able to work in Canada for your own business, managing its day-to-day operations. It is important to note that a work visa is temporary (even though there are options to renew it) and if you are interested in applying for permanent residence later you should make clear plans from the beginning of the process to ensure that the path you choose will be suitable. The requirements for a work visa are different from those required to qualify for immigration. You should seek advice from an experienced immigration lawyer to determine your eligibility for both immigration (based on factors such as your age, education, language ability) as well as a work visa.

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Immigration Pathways For Business Owners and Managers

6/9/2018

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As a country built on immigration, Canada has been attracting entrepreneurs and investors from the start of its immigration story. Many of those initial entrepreneurs helped shape the early history of the country that we know today. In more modern times, Canada has adopted various business immigration programs since 1978 to attract entrepreneurs and investors and these programs have evolved over the past four decades.

The needs of entrepreneurs and investors are often different from those of other immigrants and these present a set of unique challenges for Canada's politicians and policymakers. Canada wants to select applicants who have a proven track record of success but is past performance the most important determinant of future success? Can a successful entrepreneur or investor that has spent a decade (or several decades) working outside of Canada replicate the same success in Canada? Setting up a new business in a new country can be a difficult task. You need access to local knowledge and networks, not to mention the local language. And will a successful entrepreneur want to stay in Canada and give up all that he or she has built outside of Canada.

The challenge for Canada's immigration system is to find the right balance between attracting successful entrepreneurs and making sure that the applicants that apply can and will stay in Canada to bring their knowledge, expertise and resources to Canada. And this is a serious challenge as demonstrated by the recent history of business immigration to Canada. Canada closed its long standing federal entrepreneur immigration program and investor immigration in 2014. The two programs that have since been introduced by the federal government (the Immigrant Investor Venture Capital Pilot Program and the Start Up Program) have received only a couple of hundred applications in the past five years.

At the provincial level, with the exception of the province of Quebec that still has an immigrant investor program, applicants can only apply under entrepreneur programs. As the population of many provinces continue to decline, there is a heightened need for provinces to retain newcomers. Therefore these entrepreneur programs have evolved into a two-step process where applicants must first spend time in the province (at least 1-2 years) and demonstrate that they can be successful entrepreneurs (set up and manage their own business with a minimum investment of $150,000 to $200,000) in Canada before they are able to apply for permanent residence. This new approach helps alleviate some of the concerns about the ability to choose applicants who will be able to replicate their success in Canada and remain in Canada.

So what are the options available to entrepreneurs and investors looking to relocate to Canada? Next week I will begin to review the current programs available, their eligibility requirements and how you can best prepare yourself to become a successful entrepreneur.

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Hiring a Temporary Foreign Worker Top 5 Questions for businesses that need to fill a labour shortage in Canada

7/6/2018

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There are more than 300,000 temporary foreign workers (“TFW”) in Canada employed across the country in different positions. In order for these individuals to work in Canada they must hold a valid work permit or benefit from an exemption that permits them to work without a work permit. If you are a business owner interested in hiring a TFW the process can be very complex, especially given that hiring a TFW is regulated by Employment and Social Development Canada (“ESDC”) with a rigorous compliance regime for employers.

If you are looking to hire a TFW to fill a labour shortage because you have not been able to find a Canadian citizen or permanent resident to fill the position, then your business will need to proceed under the Temporary Foreign Worker Program. This program addresses genuine labour shortages in Canada and is intended for employers trying to fill jobs in cases where qualified Canadian citizens or permanent residents are not available.

Below are five questions you should carefully consider when starting to navigate this interesting but difficult process:

1- What kind of position do you want to hire for?
The process of hiring a TFW will start with an understanding of the position you are looking to fill in your business. Are you looking to fill a highly technical position and you have not been able to find anyone with the necessary training or experience in Canada? Or are you looking to fill a low-skill position but cannot find permanent residents or Canadian citizens to fill the position because there is a shortage of low-skill workers in your area?

These types of situations typically require you to apply for a Labour Market Impact Assessment (“LMIA”) from ESDC based on the shortage of labour in the local market. With the LMIA you can then apply to hire a TFW from outside of Canada.

2- Have you made adequate efforts to hire a Permanent Resident or Canadian first?
In order to be permitted to hire a TFW, your business will first need to demonstrate that you have made adequate efforts to hire a PR or Canadian citizen for the position. This is a mandatory step that takes at least one month. Your business must advertise the position in the Canada Job Bank and also undertake a number of other recruitment activities targeted towards hiring PRs and Canadian citizens. If this step is not correctly implemented your business will not be able to hire a temporary foreign worker.

There are some occupations where there is an exemption from the advertising requirement. If one of these exemptions applies to your business or the position you are hiring, then it is not mandatory to demonstrate your recruitment efforts in Canada.

3- Is your business eligible to hire temporary foreign workers?
If you are looking to hire a TFW your business must be economically viable and demonstrate that it is able to pay the salary expenses related to the TFW without reducing your existing work force. Your business must typically provide documents to show its legal status (e.g. incorporation documents) as well as its financial health (e.g. tax returns and payroll documents for existing staff members). Depending on the circumstances of your business you may be asked to provide additional documents such as a commercial lease agreement or major contracts for the business.

4- Are you ready for when the TFW starts working?
Going through the application process to hire a TFW can be challenging, particularly for the first time. But the process is not over when the TFW receives his or her visa and starts working for you. When you apply to hire a TFW you undertake to pay the employee at a particular wage to perform specific job duties and under certain work conditions. There are rules and formula that determine the minimum wage based on the job description and place of employment. For example a graphic designer will have to be paid at least $35.90 per hour if employed in Toronto but in Fredericton, New Brunswick the employee could be paid $30.77 per hour.

You are required to meet these conditions throughout the term of employment of the TFW. For example you cannot reduce the TFW's wages or require them to work for more hours than what you initially requested. This is monitored through various inspections and check-ups from ESDC to ensure your performance. Therefore, it is extremely important that you understand your obligations when you are preparing and submitting your application because there is a requirement for ongoing compliance and there are consequences for the business if you are found deviate from your initial job offer. And you should make sure you have a compliance program in place to be able to track your progress and be able to respond to any requests from ESDC.

5- Is there any way to hire TFWs without applying for an LMIA?
Yes! There are opportunities to hire temporary foreign workers who are already in Canada and who hold an open work permit. The biggest group of open work permit holders are those who have graduated from an eligible post-secondary program and hold a post-graduate work permit. Those with an open work permit can be hired to legally work for you without the need for an LMIA. There are some other exceptions for when you can hire a TFW without an LMIA such as if the person is exempt under a free-trade agreement such as NAFTA to work as a professional or is a high-level executive that is being sent to your business in Canada as an intra-company transferee from a parent or subsidiary company outside Canada. Given the range of options available it is best to seek the advice of an immigration lawyer to assess the best way for your business to proceed.

And don't forget that many of the TFWs that work for you may soon become eligible for permanent residence. Your investment of time and money in hiring a TFW will no doubt pay off when he or she becomes a permanent resident of Canada is an ideal candidate to permanently join your team.

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Working In Canada as a Foreign National: What You Need To Know To Legally Work in Canada Types of Canadian Work Permits

31/5/2018

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According to Statistics Canada, the current unemployment rate sits at 5.8% as of April 2018. This is the lowest rate in over 40 years since the unemployment rate when it was last below 6% in 1976. In some parts of the country we are seeing even lower unemployment rates and there are labour shortages in numerous occupations. Therefore given the current labour market situation in Canada, it is extremely important for employers to be able to reach beyond Canada's borders to hire the employees that they need to meet the needs of their business.

Canada's current Temporary Foreign Worker program is expansive and complicated. There is a need to balance this need to meet the shortages in the labour market while protecting the jobs prospects of Canadian citizens and permanent residents. Therefore, Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada share the responsibility for assessing the eligibility of employers to hire foreign workers and processing their work permit and visa applications.

For most foreign nationals that want to work in Canada they must have a work permit to legally work and receive compensation in Canada. Those who have received an immigration visa and are permanent residents of Canada have no restrictions on their ability to live and work anywhere in Canada. However, by contrast, those who obtain a work permit are restricted in terms of the type of employment they may undertake and are granted a work permit for a limited period of time.

There are a number of different ways to qualify for a work permit and this week I will be writing about the major categories that currently exist under the Immigration and Refugee Protection Act (IRPA) and related Regulations. In the coming weeks I will be writing about the regulation of the Foreign Worker Program and how employers and employees must navigate this system carefully to ensure they comply with all the requirements of IRPA.

Most Common Types of Work Permits in Canada
1) Employer-Specific Work Permits
An employer-specific work permit allows you to work according to the conditions of your work permit, including a specific, named employer, how long you may work and where you may work. If you obtain an employer-specific work permit you may only work for that employer and if you wish to change employers you will have to go through the process to obtain a new work permit for the new employer.

Depending on type of work and who the employer is there are different types of employer specific work permits that you may qualify for. Most employer specific work permits require a Labour Market Impact Assessment (“LMIA”). An LMIA is issued by Employment and Social Development Canada that allows an employer to hire a foreign worker through the Temporary Foreign Worker Program upon showing that the employer was unable to recruit a Canadian citizen or permanent resident and meets the other requirements of the Program.

In addition, in an effort to increase the competitiveness of Canadian businesses, Canada introduced the Global Skills Strategy last year. Under this program employers that want to recruit foreign workers that are facing extreme shortages identified in Canada's Global Talent Stream (occupations such as computer programmers, web developers and software engineers) face a more streamlined LMIA process that is fast-tracked allowing for temporary foreign workers to join the company as quickly as possible.

There are also a number of employer-specific work permits that are exempt from the LMIA requirement. For example there is no need to obtain an LMIA if an employer wants to transfer one of its employee from outside of Canada to its Canadian operations as long as it meets certain conditions.

There are numerous other provisions of IRPA that allow for granting employer-specific work permits such as for those who are setting up and managing a business that will create significant benefits and create jobs for Canadian citizens or permanent residents

2) Open Work Permits
An open work permit allows a person to work for any employer in Canada (with a few specific restrictions). The most well known type of open work permit is the Post-graduate Work Permit that is granted to those who have completed an eligible period of study in Canada and allows them to work legally in Canada for a period of 1 to 3 years.

Another type of open work permit is a Bridging Work Permit that allows those who are already working in Canada and have applied under an eligible immigration program to be able to remain and work in Canada until their immigration application is processed.

Others who may be eligible to obtain an open work permit include spouses of some foreign workers and international students as well as refugee claimants or protected persons and their family members.

This is not an exhaustive list of work permit options but includes some of the most common types of work permits available in Canada. In fact since there are numerous exemptions and provisions that allow for other workers to qualify for temporary work in Canada you should speak with an experienced immigration lawyer to seek advice in any particular situation.

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Toronto's Amazon Hopes - The Promise of Efficient Visa Processing for Talented Workers

25/1/2018

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Amazon Inc. is now the world's third largest retailer. An amazing feat for a company that until recently did not have any physical stores and sold exclusively online. When Amazon announced last year that it was looking for a city to locate a second headquarters outside of Seattle, cities across North America began to work feverishly on bids to be chosen as the site for an investment of $5 billion and the potential to bring in more than 50,000 new jobs. Over 200 cities from across America, Canada and Mexico submitted bids to Amazon. This week the short list of 20 cities was released and to the delight of many it included Toronto, the only city chosen outside of the USA.

So why is Toronto still in the running? One of the biggest challenges facing Amazon, and many other technology companies, is the lack of available talented workers. An immigration system that is flexible and willing to accommodate Amazon's need for thousands of highly skilled workers can make all the difference. In June 2017 Canada launched the Global Talent Stream that allows for two week expedited visa processing for many technology related occupations. In addition, Canada's temporary visa programs offers great flexibility in attracting highly skilled workers to Canada. With more options to apply to remain as permanent residents these skilled workers may be more easily retained once they have worked in Canada for a few years and set down roots. In the current international discussion about immigration, Canada's approach stands out and its efficiency and flexibility are no doubt a big part of the reason that Canada has made Amazon's shortlist.

In addition, Toronto has an existing deep talent pool with more than 4000 active start-ups at the end of 2017. In addition to the universities in Toronto, it is in close proximity to other campuses such as Waterloo, that can provide the needed talent to power these start-ups and companies that have set up large offices in Canada including Google, Microsoft and Facebook. As the largest city in Canada, Toronto is also its commercial and financial centre, home to the largest banks, investment companies and corporations. And of course it is arguably the most diverse city in the world, with more than half of its current population born outside of Canada, and can offer its residents a high quality of life.

There are additional challenges that Amazon will face it it wants to choose Toronto as it must navigate local political pressures including the USA's current “Buy American, Hire American” campaign. In addition, as NAFTA renegotiation talks are still underway, there is the risk that the United States may pull out of NAFTA leading to greater complications in cross-border transactions. Overall, Amazon will have to balance all of these factors against its fundamental need to make sure it can staff its second headquarters with 50,000 employees that will likely not come from the local city but from around the world.

And there are some in Toronto that are asking the city to proceed more cautiously and are questioning whether we really want an online retailing giant in our city. Given the concerns about the lack of existing high tech talent in Toronto, executives from Toronto's start-up community are concerned that Amazon could soak up all the local high-tech talent, leaving many other companies struggling to find the experts they need for their businesses to operate and grow and may well prevent Toronto from nourishing it's own Amazon-like success. They argue that the new expedited visa programs should be used to help existing start-ups and companies that are facing the current talent shortage and we should be weary of creating a bigger labour shortage. We will have to wait and see what Amazon decides in the months to come.

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2018 Immigration Outlook

11/1/2018

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2017 was a big year of changes for immigration laws in Canada with new programs and developments in existing immigration programs. For the most part Canada's stance in welcoming immigrants was in contrast to negative views towards immigration in the US and much of Europe. As 2018 begins, what can we expect to see in Canada?

Citizenship
Changes to the Citizenship Act came into effect in October 2017 making it easier and faster to obtain Canadian citizenship. This created a rush in new applications and Immigration, Refugees and Citizenship Canada (“IRCC”) reported that they received more than 30,000 new applications in the first two weeks after the changes, more than double what they would have received in each month prior to the change. This will likely mean longer processing times but we hope that the efficient processing of the past two years will continue and IRCC can keep processing times from spiralling out of control.

Express Entry
The Express Entry (“EE”) system of selecting immigrants is still the largest source of economic immigrants to Canada. In 2017 over than 85,000 applicants were invited to apply through the EE system, more than the number of total number of invitations issued in 2015 and 2016. IRCC has made improvements to the EE system in late 2016 that allowed more applicants to qualify. We have also seen the minimum score required to be invited under EE come down to as low as 413 points (May 2017) and if Canada is to meet it's target of attracting one million new immigrants over the next three years there will likely be further downward pressure on the minimum score and we will see more applicants qualify under EE.

Family Sponsorship
The process of registering for the parent and grandparent sponsorship program was changed in 2017 to a lottery system and the same system is in place this year, albeit with some minor changes. IRCC is again set to select 10,000 applicants under this program to fill its annual quota.

The spousal sponsorship program also made news in 2017 as IRCC worked to meet the target of processing these applications within 12 months. By the end of 2017 the average processing time across all visa offices was 12 months, a significant improvement on previous years where families sometimes had to wait years to be reunited in Canada.

New Definition of Dependent Child
IRCC's definition of eligible “dependent children” changed in October 2017 to include children up to 22 years of age. For new applications can now include these dependent children, and in some cases applicants have until 31 January 2018 to add qualifying dependent children to existing permanent residence visa applications.

Provincial Nominee Programs
Provincial Nominee Programs (“PNPs”) allow provinces to identify and select potential immigrants for settlement in their local economy and labour market. While PNPs have existed for many years, the provinces have spent 2017 expanding their programs, providing qualified applicants with more options for settling in towns and cities across Canada. IRCC's target for 2018 is to process 55,000 PNP applications.

Global Talent Stream and Two Week Processing
In June 2017, IRCC introduced the Global Talent Stream (“GTS”) allowing for fast-tracked processing of Labour Market Impact Assessments leading to work permits in as little as two weeks. The program is focused on areas where there are significant labour shortages, particularly in technology related fields, and has so far been a great success in helping Canadian companies attract and bring in much needed employees to develop and grow their businesses in Canada. Amazon and Facebook opened new offices in Canada in 2017 after Google, Apple and Microsoft all expanded their operations in Canada in 2016. These companies, along with hundreds of start ups and medium sized companies are looking to hire workers with the help of the GTS.

For now the GTS is a pilot program but if it continues to build on the success of its first six months we hope that IRCC will keep and expand the program to give Canadian businesses a competitive advantage.

While 2017 was a year of big changes, there always room for the government to surprise us again in 2018. As Canada works towards its target to admit one million immigrants over the next three years we are likely to see more changes and immigration programs introduced this year.

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NEWS

Business Pathways: Buying or Setting Up a Business in Canada

Immigration Pathways For Business Owners and Managers

Hiring a Temporary Foreign Worker Top 5 Questions for businesses that need to fill a labour shortage in Canada

Working In Canada as a Foreign National: What You Need To Know To Legally Work in Canada Types of Canadian Work Permits

Toronto's Amazon Hopes - The Promise of Efficient Visa Processing for Talented Workers

2018 Immigration Outlook

Authors:
Zeynab Ziaie
Zahra Ziaie

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Categories

NEWS

Business Pathways: Buying or Setting Up a Business in Canada

Immigration Pathways For Business Owners and Managers

Hiring a Temporary Foreign Worker Top 5 Questions for businesses that need to fill a labour shortage in Canada

Working In Canada as a Foreign National: What You Need To Know To Legally Work in Canada Types of Canadian Work Permits

Toronto's Amazon Hopes - The Promise of Efficient Visa Processing for Talented Workers

2018 Immigration Outlook

Authors: Zeynab Ziaie Zahra Ziaie

Archives

Categories

Authors:
Zeynab Ziaie
Zahra Ziaie